Sharp Growth for Optical Transport in 2Q08, According to Dell'Oro Group

Business Wire, August 20, 2008

Strongest Growth in DWDM Long Haul

REDWOOD CITY, Calif. -- According to a newly published report by Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, the worldwide optical transport equipment market grew to a new quarter high of $3.5 billion. The top vendors in the quarter were Alcatel-Lucent, Huawei, and Nortel garnering nearly 50 percent of the market share.

"The optical equipment market had another strong quarter with revenues growing 13 percent, far exceeding expectations," said Jimmy Yu, Director of Optical Transport research at Dell'Oro Group. "DWDM equipment sales continued on their growth trajectory with a 24 percent growth rate as service providers increased their installation of long haul capacity and 40 gigabit wavelengths. There are six vendors shipping 40 gig wavelengths. The leading vendor in 40 gig wavelengths continued to be Nokia Siemens Networks with Nortel following closely in second. In addition, we believe that Ciena and Nortel continued to ship naked-40 gig long haul systems, where the transponder is not located in the vendor's DWDM terminal, but rather in a core router such as Cisco's CRS-1," Yu added.

Dell'Oro Group's Optical Transport report captures revenue by region. In the second quarter, all regions with the exception of North America, reported sequential growth in optical revenue. Asia Pacific reported the strongest growth for this quarter.

About the Report

The Dell'Oro Group Optical Transport Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers' revenue, average selling prices, unit shipments Tributary/Line or Wavelength shipments (by speed OC-3/STM-1, OC-12/STM-4, OC-48/STM-16, OC-192/STM-64, OC-768/STM-256, and Other). The report tracks DWDM long haul terrestrial, WDM metro, SONET/SDH, and optical switch equipment. To purchase this report, please contact Emily Kendall, call 1.650.622.9400 x223 or email Emily@DellOro.com.

About Dell'Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell'Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell'Oro Group at 1.650.622.9400 or visit www.DellOro.com.