Prices tumbling on Gigabit Ethernet gear

Shipments of Gigabit Ethernet ports grew slightly in the third quarter of this year, while diminishing per-port prices caused the total market revenue for Gigabit gear to shrink, according to Dell'Oro Group.

Although shrinking revenue is bad news for vendors, companies are taking advantage of the falling prices of Gigabit Ethernet products to upgrade LAN backbone connections and even to deploy 1000Mbps connections to desktops.

According to Dell'Oro, Gigabit Ethernet port shipments grew 6 per cent last quarter, while revenue shrank 5 per cent worldwide. The average price for a Gigabit Ethernet port last quarter was $US571, down almost $200 from a year ago.

The development of copper-based Gigabit Ethernet as an alternative to traditional fibre-based products has helped to drive down prices.