Frost & Sullivan: Turning Your Fiber Network into a 16-Lane Superhighway with Dense Wavelength Division Multiplexing, Could Save Your Customers from Gridlock on the Internet
MOUNTAIN VIEW, Calif., Oct. 28 /PRNewswire/ -- Trying to get on-line, and all you get is a busy signal? Many Interexchange Carriers (IXCs)
are facing the problem of capacity exhaustion in their fiber backbone as a result of unprecedented growth in the network. Dense wavelength
division multiplexing (DWDM) systems allow the carriers to expand their current capacity sixteen fold, or more.
According to new strategic research from Frost & Sullivan (www.frost.com), U.S. Dense Wave Division Multiplexing (DWDM) Systems Market, the market is estimated to experience high growth in the next few years. The compound annual growth rate (CAGR) from 1996-2003 is projected to be 39.4 percent.
''The DWDM market is emerging as one of the fastest growing markets in the telecommunications industry,'' says Frost & Sullivan's
Telecommunications Industry Analyst Brian Cotton. ''By deploying DWDM technology, carriers are able to increase their network capacity to
meet the fast growing bandwidth demand without adding more fibers. In addition, they can expand it on by adding channels when necessary.''
The phenomenal growth of the Internet and other applications such as e-mail, large fiber transfer, videoconferencing and emerging technologies in the local loop such as digital subscriber lines (xDSL) and integrated services digital network (ISDN) are consuming massive bandwidth in the fiber backbone. Major IXCs are facing the threat of capacity exhaustion in the near future, which can be met by deploying DWDM technology.
While DWDM is projected to be a high-growth market, it is likely that the market will be dominated by only a few strategically targeted
companies. This trend is reflective of the telecommunications service providers' preference to deal with a single company capable of offering aturnkey solution.
In 1996, the first competitive year for DWDM systems, the market was overwhelmingly dominated by the three top competitors, Ciena, Lucent,
and Pirelli. However, as an emerging technology, DWDM has attracted the interest of a multitude of companies that are anxious to capture a
portion of this lucrative opportunity. Consequently, the market is rapidly taking shape through a wave of new entrants, strategic partnerships,
and acquisitions.
''As an emerging market, the DWDM system market is somewhat chaotic and unsettled,'' says Cotton. ''The embryonic nature of the industry
contains some restraints such as high costs in short haul applications, lack of standards, and the unproved nature of DWDM technology.''
Cost is one of the most important factors holding off many smaller carriers from implementing DWDM in their network. Especially in the local
exchange carriers' (LECs) networks, with many short-haul applications, DWDM systems may not be an economically viable option for
bandwidth expansion at this time.
The DWDM market consists of systems integrators and component manufacturers. Increasingly, there is a trend for traditional
telecommunications systems integrators to acquire or partner with component manufacturers to gain DWDM capabilities.
The next several years will likely be marked by a dynamic competitive environment, as DWDM systems manufacturers jostle for a market share
of this emerging technology.
This Telecommunications Industry research has integrated the Market Engineering consulting philosophy into the entire research process.
Critical phases of this research included: identification of industry challenges, market engineering measurements, strategic recommendations,
planning and market monitoring. All of the vital elements of this system help the market participants navigate successfully through the
telecommunications market.
The technologies reviewed include dense wavelength division multiplexing(DWDM), wavelength division multiplexing(WDM), time division
multiplexing (TDM), synchronous optical network (SONET) optical amplifier, optical add/drop multiplexers (OADMs) and Optical cross
connects.
Market Participants include: Alcatel Network Systems, Inc., Artel Video Systems, Ciena Corporation, Corning, Inc., Transport & Cable Networks,
Fujitsu Network Communications, Inc., Hitachi Telecom Ltd., Lucent Technologies, Inc., Matsushita Electric Co. of America, NEC America, Inc.,
Newbridge Networks, Northern Telecom, Ltd., Osicom Technologies, Inc., Pirelli Cable Corporation, Siemens Stromberg-Carlson, Tellabs, Inc.,
Advanced Optronics Corporation, Alcatel Network Systems, Inc., Alcoa Fujikura, Ltd., Allen Telecom, Alliance Fiber Optics Product, Inc.,
Ameritech Corporation/Corporate HQ, AMP Incorporated, Anritsu America, APA Optics, Inc., ATI Electronique, AT&T Corporation, AWC U.S.
Fiber-Optics, Bell Atlantic Corporation, Bellcore, Inc. Headquarters (Bell Communications Research), BellSouth Corporation, Bosch Telecom,
Inc., Bragg Photonics Inc., Communications Systems, Comtec Cable Accessories, Ltd., Danzen, DiCon Fiberoptics, Inc., Ditech, Eagle
Optoelectronics, LLC., Equitel, Ericsson Components AB, E-TEK Dynamics, Inc., E x B Technology, Inc., Fibersense & Signals, Inc., Galileo
Electro-Optics Corp., GC Technologies, Inc., GCA Fibreoptics, Ltd., Graseby, GTE Corporation, Gould, Inc., Hewlett-Packard, Instruments S.A.,
Inc., Invention Machine Corporation, IPITEK, Inc., JDS FITEL, Inc., Kaifa Group, Inc., Krone AG, Lightpath Technologies, Lightwave
Electronics Corporation, Litecom, Inc., Litton Poly-Scientific, Litton Systems, Inc., LM Ericsson, Mitel Semiconductor, Mitsubishi Electric, MP
Fiberoptics, Inc., MPB Technologies, Inc., National Optics Institute, NTT Electronics Technology., NYNEX Corporation, Oprel Technology
Incorporated, Optigain, Inc., Optivision, Optical Corporation of America, Ortel Corporation, OZ Optics, Ltd., Pacific Telesis Group, Photonetics,
Photonic Integration Research, Inc., Physical Optics Corp., Porta Systems Corp., Santec Corp., Southwestern Bell Corporation, Shimadzu Corp.,
Scientific-Atlanta, Inc., Sierra Networks, Inc., SMI, Sprint Corporation, Sumitomo Electric Lightwave, SVEC Computer Corp., Synchronous
Communications, Inc., TC Communications, Telco Systems, Inc., US WEST, Inc., IEEE (Lasers and Electro-Optics Society), Optical Society of
America and TIA (Telecommunications Industry Association).
Frost & Sullivan is an international marketing consulting company that monitors the telecommunications industry for market trends, market
measurements, and strategies. This ongoing research is utilized to update a series of research publications such as #5418-60 U.S. Digital
Subscriber Line Technology (xDSL) Markets and to support industry participants with customized consulting needs. |
