Wednesday, January 28, 2009

Dell'Oro: Rapid Rise in 40 Gbps Wavelength Shipments Despite Market

The total worldwide Optical Transport equipment revenue is forecasted to decline 9 percent in 2009 and resume growth in 2010, reaching $14.5 billion in 2013, according to a newly released Optical 5-year forecast report by Dell'Oro Group. Shipments of 40 Gbps wavelengths are forecast to grow at least 50 percent in each of the next five years and contribute nearly one-third of the capacity shipped in DWDM Long Haul systems by 2013. The report also indicates that shipments of 100 Gbps wavelengths are expected in late 2011.

"The economy of most major countries is in a recession, and the consensus belief is that this recession may last through 2009," said Jimmy Yu, Director of Optical Transport research at Dell'Oro Group. "While the near term outlook is for the total optical market to contract 9 percent due to factors such as the economic downturn, there continues to be an opportunity for technologies that will help service providers reduce their capital expense while still expanding their network capacity. We think that 40 Gigabit is one of those technologies as the price per bit of a 40 Gbps wavelength starts to be lower than that of a 10 Gigabit wavelength in a DWDM Long Haul system," added Mr. Yu.

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