Optical rebound
NetworkWorld.com, 05/04/06
The optical networking market is outpacing the growth of the telecommunications market, according to IDC.
The worldwide optical networking market will increase at a 12% compound annual growth rate, rising from $7.9 billion in 2005 to over $13.9 billion in 2010, the firm states.
Broadband services, initial and planned video services, cellular data services, and established disaster recovery plans are driving growth in metro WDM and multi-service provisioning platforms, according to IDC. The firm expects providers will continue their investments in the metropolitan space, showing a preference for single optical rings based on reconfigurable optical add/drop multiplexing, or ROADMs.
But the cost of optical components integrated into ROADMs and other gear must decrease for this market to really explode, IDC asserts.
Another trend is that service provider consolidation is driving optical vendors to find new outlets for revenue, creating growth in the optical vertical segment. IDC cites significant growth in private optical networks, deployed by large enterprises such as financial institutions, health care organizations, and educational institutions, as well as all levels of government.
The firm expects this to continue and contribute to market growth in 2006.
-- Jim Duffy, jduffy@nww.com
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