Optical Transport Market to Contract in 2009, According to Dell'Oro Group

Business Wire, Dec 10, 2008

Huawei is Only Leading Vendor to Gain Market Share in the Third Quarter

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 7 percent in the third quarter of this year compared to a year ago. Following this 20th consecutive quarter with year-over-year growth, the optical market is forecast to enter a period of contraction, declining nearly 10 percent in 2009.

"This quarter marks the fifth year of growth since the telecom winter of 2001," stated Jimmy Yu, Director of Optical Transport research at Dell'Oro Group. "It is only natural following this strong build cycle that there would be a market contraction regardless of an economic recession. Furthermore, the current global economic strain is forming an additional layer of compression on the optical market in the form of uncertainty that brings cautious spending in both consumers and enterprises. In recognition of this and other factors, we have revised our 2009 forecast to decline from 5 percent to almost 10 percent," Yu added.

The top vendors in the third quarter based on market share continued to be Alcatel-Lucent, Huawei, Nortel and Fujitsu. Of these leading vendors, Huawei was the only vendor to gain market share compared to a year ago. This gain was due to the strength of its DWDM Long Haul and WDM Metro revenues that combined grew nearly 90 percent year-over-year.

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.