Free Space Optics Hits Mainstream - Industry Trend or Event - Brief Article

Telecommunications, April, 2001

Look Out, LMDS. Free space optical technologies are about to make the jump from niche application to billion-dollar industry, according to market research firm Allied Business Intelligence. The close to $119 million in revenue generated by worldwide shipment of free space optic transceivers in 2000 should rise to $1.5 billion in 2003 and $4.4 billion in 2005, ABI says.

In close competition with LMDS (local multipoint distribution service) technology, free space optics is expected to be used mainly in urban areas to serve high-value customers, with carrier/access applications rather than wireless bridges eventually to account for more than 70 percent of the market.

                   Value of FSO Tranceiver Shipments
                               2000-2005
                           Value ($Millions)
2000   $118.8
2001   $492.0
2002   $885.6
2003  $1536.1
2004  $2659.5
2005  $4400.3
CAGR 106%
Source: Allied Business Intelligence
Note: Table made from bar graph