Feeds

Optical transport market in decline

DWDM in the doldrums

  • alert
  • submit to reddit

HP ProLiant Gen8: Integrated lifecycle automation

Sales of optical networking kit are in decline with sales down 11 per cent over the last quarter.

According to analyst firm Dell'Oro Group, sales in all segments in the market (which includes Long Haul and Metro (Dense Wave Division Multiplex) as well as SONET/SDH kit) were down over the last three months. The DWDM-Metro market was hit particularly badly, recording its first ever sequential decline.

Dell'Oro estimates Q32001 revenues in the overall market of just $3.4 billion in Q32001.

Revenues for Lucent, Nortel, Fujitsu, and Ciena of optical transport kit were all down, with only Alcatel of the major five vendors bucking the trend with sales up 11 per cent. Fujitsu was worst hit with revenues down 22 per cent.

Shin Umeda, a principal analyst at Dell'Oro, said that the segment of the networking equipment market was exposed to cutbacks in carrier spending, particularly in North America.

After investing heavily over the last two years improving backbone capacity is no longer a high priority for many telcos, he added.

Vendors such as Cisco, Foundry and Extreme are talking up the potential market for Gigabit Ethernet kit in metropolitan networks that connect carriers networks to their customers. The market for this technology, which is in its early stages of development and promises to be much cheaper than legacy optical technologies like SONET, wasn't investigated as part of this Dell'Oro study. ®

Related stories

Carrier backbones: bandwidth glut or gap?
LINX upgrades for soaring UK Net traffic
Deutsche Telekom takes 40Gbps kit for a spin

External links

Dell'Oro study

Eight steps to building an HP BladeSystem

More from The Register

next story
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
Seagate chances ARM with NAS boxes for the SOHO crowd
There's an Atom-powered offering, too
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.