Optical access networks to provide U.S. market opportunities for WDM systems
broadband-guide.com
Market Watch, August 1998
The optical-access-network market is rapidly emerging in the
United States, resulting in a steady increase in deployment of
wavelength-division multiplexing (WDM) systems for local
businesses and consumers, according to a report by Pioneer
Consulting (Cambridge, MA). Optical Access Networks: WDM
and Optical Networking for Local Loop and Cable TV
Applications forecasts an increase from $76 million in 1998 to $1
billion by 2003 for the deployment of WDM systems into access
networks in the United States. The forecast includes end-to-end
WDM systems for enterprise, metropolitan area, local exchange
carrier (lec), and local access networks.
Optical access networks improve on the traditional
fiber-to-the-curb or fiber-to-the-neighborhood schemes by adding
all-optical components and subsystems such as add/drop
multiplexers, crossconnects, dense WDM systems, and amplifiers
to create an optical layer within the access network. This layer
then performs routing, switching, and crossconnect functions
completely in the optical domain.
Pioneer says optical access networks have become the next
logical step in the optical networking market's evolution and
present the potential for long-term growth and profits for
manufacturers. But no one solution will arise that satisfies the
demands of all consumers or carriers. Instead, access architecture
chosen for a particular deployment will depend on the current or
predicted regulatory regime, carriers' competitive environment,
predicted service mix, scalability of network architecture, system
costs, demographics, and embedded plant.
The report calls the present access network in the U.S. market a
complex battleground of competition and uncertainty. The
important forces driving the consideration and deployment of
optical access networks include competition, cable congestion,
increased bandwidth demand, and the availability of more
affordable WDM equipment.
The Internet is the most important long-term driver of bandwidth in
the access loop, with upward trends in residential and business
markets. The most remarkable aspect of the Internet, says
Pioneer, is its ability to impress both markets equally, despite its
many limitations. Bandwidth demand is being driven to the point
where WDM deployment seems almost inevitable.
Although currently dominated by long-haul carriers, viable markets
will exist over the long term for WDM systems in competitive local
exchange carriers, incumbent local exchange carriers, enterprise
network operators and, though more limited, cable-television
operators. A number of important opportunities are arising for
vendors of systems, subsystems, and components in the
optical-access market. As the market develops from dense WDM
point-to-point solutions to true all-optical network deployments, a
number of criteria must be met by access providers.
Bell Atlantic, in developing an optical network strategy, identified
such criteria for optical-access deployment. According to Bell
Atlantic, any new technology introduced into the network must use
existing fiber plants, provide operations and management cost
savings, be flexible to uncertain and chaotic demand, optimize
investment, and allow evolution to the most efficient network
topology in each location.
For additional information or to purchase a complete report,
contact Pioneer Consulting; tel: (617) 441-3900; e-mail:
info@pioneerconsulting.com.
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