Cheaper Chips Drive Sales

The 10-Gbit/s Ethernet (10GE) sector is on track for significant growth this year, according to a major new report from Heavy Reading

NEW YORK -- The 10-Gbit/s Ethernet (10GE) sector is on track for significant growth this year, with lower prices for 10GE components and deployment of AdvancedTCA systems sparking a surge in demand from equipment makers, according to a major new report from Heavy Reading (, the market research division of Light Reading Inc. (

10-Gbit/s Ethernet Components: A Heavy Reading Competitive Analysis delivers a comprehensive assessment of components vendors that are developing physical layer (PHY) devices, integrated switch devices, and transponder modules for the 10GE market. The all-new report provides complete product and availability information for 225 different 10GE components from 38 different manufacturers. Full comparative product matrices deliver more than 3,000 unique data fields, covering every 10GE component product from every vendor.

For a list of the companies profiled and analyzed in the report, visit

"System manufacturers have identified the high cost and power demands of 10GE transponders and PHY devices as the key barriers to making equipment more affordable for carrier and enterprise customers," notes Simon Stanley, Analyst at Large with Heavy Reading and author of the report. "Transponder and PHY vendors have responded to this challenge with devices that cost less to manufacture and that use less power. As a result of these advances, 10GE system prices are now tumbling, and port shipments are rising as the per-user price of 10GE backbone connectivity falls below the $100 mark."

Key findings of 10-Gbit/s Ethernet Components: A Heavy Reading Competitive Analysis include the following:

The 10GE sector is on track for significant growth this year, with component shipments rising sharply. Components vendors such as Quake Technologies shipped as many 10GE devices in 2005 as they did in the preceding three to four years combined. This activity at the components level means significant growth in 10GE port shipments will accelerate, as the cost reductions work through the supply chain.

Costs for 10GE components continue to fall, with PHY prices dropping below the $50 mark. 10GE PHY devices that are now in production cost one tenth as much as first-generation 10GE PHY components did. The magnitude of this decrease will further spur demand for 10GE-capable products.

AdvancedTCA is a key driver in the market for integrated 10GE switch devices. There are now integrated switch devices from five vendors available for ATCA and other applications.

10GE over copper technology is poised to move ahead, with the IEEE's ratification of the 10GBase-T standard. Now that the IEEE has ratified 10GBase-T, vendors are moving ahead with solutions for 10GE over Category 5e, Cat6, Cat6e, and Cat7 twisted-pair cable. Compliant 10GBase-T components are expected before the end of 2006 from vendors including SolarFlare.

10-Gbit/s Ethernet Components: A Heavy Reading Competitive Analysis is published in PDF format and costs $3,795. The price includes an enterprise license covering all of the employees at the purchaser's company.

For more information, or to request a free executive summary, contact:

Dave Williams
Sales Director, Heavy Reading
[email protected]

Press/analyst contact:

Dennis Mendyk
Managing Director, Heavy Reading
[email protected]


About Heavy Reading
Heavy Reading is an independent market research organization offering quantitative analysis of telecom technology to service providers, vendors, and investors. Its mandate is to provide the comprehensive competitive analysis needed today for the deployment of profitable networks based on next-generation hardware and software.

About Light Reading
Reaching a core audience of more than 917,000 enterprise IT managers and executives, Light Reading Inc. publishes, the leading global content site for the telecom industry;, a storage networking site;, dedicated to wireless networking; and, an IT security site. Light Reading is also affiliated with, a market research site offering quantitative analysis of telecom technology to carriers, service providers, and vendors. Light Reading was acquired by United Business Media in August 2005, and operates as a unit of CMP Technology.

About CMP Technology
CMP Technology ( is a marketing solutions company serving the technology industry. Through its market-leading portfolio of trusted information brands, CMP has earned the confidence of more technology professionals than any other media company. As a result, CMP is the premier provider of access, insight and actionable programs designed to connect sellers and buyers in ways that yield superior return on investment. CMP Technology is a subsidiary of United Business Media (, a global provider of news distribution and specialist information services with a market capitalization of more than $3 billion.