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May 25th, 2014
WDM optical spending up 8% year-over-year
Infonetics report says 100G now accounts for 20% of total WDM market.
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Investment in 100G optical communications systems worldwide during 2013 was “breathtaking”, according to a new market report published by Infonetics Research. Andrew Schmitt, principal analyst for optical at the company commented, “Total port shipments tripled during the year, which equates to around $2 billion in spending just related to 100G systems. That’s a lot — roughly 20% of all WDM spending.” But the bonanza is not being shared across a wide range of suppliers, as Schmitt explained: “This revenue is flowing primarily into the hands of five companies: Alcatel-Lucent, Ciena, Cisco, Huawei, and Infinera."

Although sales of 100G optical WDM have taken off, some older technologies have been on the slide. The overall global optical spend in 2013 was down yet again as demand for legacy SONET/SDH systems continued to fall: optical network hardware revenue, including WDM and SONET/SDH, declined 2% year-over-year in 1Q14. And on a rolling four-quarter basis over the past year, total optical spending was roughly flat, Infonetics concluded.

Other notable findings in the report include: The WDM segment notched its seventh straight quarter of year-over-year growth, up 8%; EMEA experienced a seasonal 4Q to 1Q drop as we entered 2014, but this effect is no longer evident in the USA, a result of large carriers changing spending patterns and smaller carriers operating on a more project-oriented, rather than calendar-oriented, purchasing cycle.

To read more: http://optics.org/news/5/5/46


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