A
router is a network device used to forward packets from one network
to another. These routers are configured by entering values to the
internal routing tables, based on which the router forwards the
packets to the desired destination. Factors that determine the line
on which the packets will be forwarded are line cost, congestion and
traffic load. The service provider edge routers are configured to
forwards packets received from one service provider to the other.
These routers are capable of handling wide range of protocols such as
Border Gateway Protocols (BGP), Open Shortest Path First (OSPF) and
Multi-Protocol Label Switching (MPLS). These routers ensure that the
service provider’s network is connected with internet, external
network or a wide area network.
In
order to provide connectivity between networks, the service provider
edge router primarily need to follow Border Gateway Protocol (BGP).
BGP is basically an exterior gateway protocol which is intended to
exchange routing information between different autonomous systems on
the internet network. BGP enables the router to decide the
communication path based on the rules set-up by the network
administrator and network policies. BGP is sometimes used for routing
packets within an autonomous system. Such type of protocol is termed
as Interior Border Gateway Protocol (IBGP). Conversely, for internet
applications this protocol is referred as Exterior Border Gateway
Protocol (EBGP).
Primarily,
the service provider edge router deploys an External Border Gateway
Protocol (EBGP) that is widely employed over the Internet to ensure
connectivity with the networks in the remote sites. The prime
function of a service provider edge router is to provide
communication between service provider’s network and the autonomous
systems, and networks of other service providers.
The
market for service provider edge router is driven by the rising
number of internet subscription across the globe. Moreover, the major
share of demand for internet subscription is from emerging countries
of Asia Pacific, Middle East, Africa and Latin America. Thus, the
demand for expansion of network increases to provide highly available
connectivity, which results in demand for edge routers in the
network. In addition, the on-going deployment of high speed LTE
networks across North America and Europe is further boosting the
growth of the service provider edge router market.
Currently,
the major challenge with the service providers is to balance video
services, wireless services and cloud services. Owing to this
challenge, the companies are offering edge routers that are capable
of aggregating multiple IP networks into a single IP edge to provide
video services, wireless services and cloud services. This provides
tremendous growth opportunities for the existing players such Cisco
Systems, Inc. and Juniper Networks, Inc. Moreover, the upcoming trend
of transition from IPv4 to IPv6 is a potential opportunity for the
new players to enter into the market.
The
service provider edge router market is highly competitive with
players such as Cisco Systems, Inc., Alcatel-Lucent S.A., Juniper
Networks, Inc., Huawei Technologies Co. Ltd., and ZTE Corporation
dominating market. Cisco Systems, Inc. and juniper Networks, Inc. are
the leading edge router providers competing in this market. These
companies are continuously upgrading their existing edge routers to
gain a competitive edge over other players in the market. However,
Players such ZTE Corporation, Huawei technologies Co. Ltd. and other
regional players are consistently expanding their business into this
market and increasing the competitive rivalry in the market.
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