Ovum Determines Global WDM Market is $1.2 Billion in 1998

Business Wire,  Dec 10, 1998  

Tags: Ovum, WDM

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LINTHICUM, Md.--(BUSINESS WIRE)--Dec. 10, 1998--

CIENA Estimates WDM Worldwide Market Share Of 38 Percent

CIENA Corporation (Nasdaq: CIEN) today highlighted important market data derived from a recently completed independent research report. Based on CIENA's fiscal 1998 revenues, and the research report's findings of worldwide market size, CIENA claims a 38% share of the worldwide wavelength division multiplexing (WDM) market, and a significantly higher worldwide market share for 16-channel and above dense wavelength division multiplexing (DWDM) systems.

The study, believed to be the first ever on the global WDM systems market, was completed by Ovum, a leading international telecommunications research firm. Ovum's research, based on purchasing information provided by service providers worldwide, determined that carriers spent an estimated $1.2 billion (U.S. dollars) on WDM equipment in 1998. Carriers projected that its WDM spending would increase significantly in the future.

Ovum's findings also show that WDM spending for 1999 is anticipated to increase over 1998 levels, and that carriers expect to shift purchasing patterns to favor higher-channel count WDM products.

"WDM has won worldwide acceptance as a fiber exhaust solution, and is increasingly earning recognition as the foundation for optical networking," said Dr. Barry Flanigan, senior analyst at Ovum. "In 1999, WDM will be used to further increase bandwidth in long-haul telephony networks, as carriers move towards higher channel WDM systems. As carriers start to evolve the next generation of telecoms networks, we expect the emphasis will begin to shift towards more sophisticated optical networking applications that emphasize simpler network architectures, transporting IP and ATM-based traffic directly over WDM."

"Ovum's research offers evidence that as the new-kid-on-the-block, CIENA's been able to leverage its first-mover advantage and technology lead to build a substantial market presence, particularly in the international arena," said Steve Chaddick, CIENA's senior vice president of strategy and corporate development. "Even more importantly, as a result of the work done by Ovum and other industry analysts, it is becoming more evident the worldwide opportunity for DWDM and optical networking is large and growing."

For more information about Ovum's "WDM Global Strategies for Next Generation Networks" or to purchase the report, please contact Ovum Ltd. at 44 171 255 2670 in London or 800/642-OVUM in Massachusetts.

ABOUT Ovum

Ovum is an independent telecommunications, information technology and new media analyst group, providing high quality, authoritative information and advice on key market, technical and regulatory developments. Ovum's research is wholly self-funded. It accepts no sponsorship from vendors or other interest groups, nor does it rely on them to purchase findings. Ovum's customer base comprises suppliers, users and policy makers worldwide. Ovum has offices in Boston, London and Melbourne, and currently employs 180 staff worldwide.

ABOUT CIENA

Based in Linthicum, Maryland, CIENA Corporation is a worldwide market leader of open architecture, dense wavelength division multiplexing (DWDM) systems for long-distance and local exchange carriers. CIENA's DWDM solutions include the MultiWave(R) 1600 long-haul transport system, WaveWatcher(R) network management software, the MultiWave Optical Add/Drop Multiplexer, the MultiWave Sentry(tm) enhanced long-distance transport system and the new MultiWave(R) Firefly and MultiWave Metro(tm) short-haul systems. Through its Alta subsidiary, based near Atlanta, GA, CIENA provides a range of engineering, furnishing and installation (EF&I) services for telecommunications service providers in the areas of transport, switching and wireless communications.

Additional information about CIENA can be found on its World Wide Website: http://www.ciena.com.

Note To Editors

Ovum's report, WDM: Global Strategies for Next Generation Networks, was published in October 1998. Ovum has made a detailed white paper on WDM issues available free of charge to the press community. If you are a journalist and would like to receive more information, please contact Daniel Matkovits, global press relations, at Ovum in Boston on email: dma@ovum.com

When CIENA refers to WDM systems, it defines WDM as 8-channels or below. DWDM is defined as any system that is capable of 16-channels and above.

NOTE TO INVESTORS:

Forward-looking statements in this release, including statements regarding the large and growing opportunity for DWDM and optical networking, are based on information available to the Company as of the date hereof. The Company's actual results could differ materially from those stated or implied by Ovum's research and such forward-looking statements, due to risks and uncertainties associated with the Company's business, which include the risk factors disclosed in the Company's Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on December 10, 1998.

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