From the "big $$$" files:

The continued growth of the Internet and demand for more access and speed are fueling big numbers in IP routers. The latest Infonetics Research report on Service Provider Routers and Switches is reporting that Worldwide service provider core and edge IP router revenue hit $2.6 billion in 2Q08.

According to Infonetics, manufacturer revenues are up by 40 percent on a year over basis over 2Q07 and 17 percent on a  sequential quarter-over-quarter basis.

Infonetics specifically pointed out Cisco's gains clocking in at, "...a 15 percent  gain in combined IP edge and core router revenue, giving them over half the worldwide market, a position they've maintained since 2005, despite growing competition."

Cisco rivals Juniper and Alcatel-Lucent also posted what Infonetics referred to as respectable single digit revenue gains. All in all the outlook offered by Infonetics seems to point to continued growth for the remainder of the year though economic concerns could put a damper on things.

"Since the upturn in 2003 from the great telecom downturn, IP router revenue has grown 20 percent to over 30 percent each year, and we expect the trend to continue in 2008," Michael Howard, principal analyst and co-founder of Infonetics. said in a statement. "The 2 big drivers for continued growth are expanding traffic and IP transformation projects, with traffic the stronger factor."