Tuesday, November 19, 2013

Infonetics: Optical Infrastructure Spending Slows

Globally, the optical network hardware market (WDM and SONET/SDH) is down 7% sequentially in 3Q13, and down 1% from the year-ago quarter, according to a new report from Infonetics Research.


“In the third quarter of 2013, sales of WDM optical equipment are up 4% from a year ago and remain at the elevated levels reached earlier in the year, but overall optical spending is down on a quarter-over-quarter and year-over-over basis,” says Andrew Schmitt, principal analyst for optical at Infonetics Research. “Looking ahead, we expect tier 1 carriers to dial back spending. Capex was so strong in the first and second quarters of 2013, it’s unreasonable to anticipate a big flush in the fourth quarter, especially in North America. There’s a general weakness in the market, even from carriers that didn’t aggressively ramp spending earlier this year.”

Some highlights of the report:

  • Total optical spending is flat on a rolling 4-quarter basis, with WDM growth accelerating and notching a 5th consecutive quarter of growth in 3Q13
  • North America optical spending jumped 13.4% year-over-year in 3Q13 following an 11.1% YoY increase the previous quarter, driven by aggressive 100G rollouts by tier 1 operators
  • In 3Q13, EMEA (Europe, the Middle East, and Africa) WDM spending declined on a year-over-year and sequential basis, nearing the record low set in 1Q13
  • Japan dragged down the Asia Pacific optical market in 3Q13, a result of spending retracing huge gains in 2012
  • Huawei, Ciena, and Alcatel-Lucent are the WDM market share leaders in 3Q13.


http://www.infonetics.com

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