Earlier today, Kaka from the Yahoo! thread posted several excellent links;
This article in particular is important to look at. It is the Executive summary to a $6,000 document on Metro Optical Networks.
I hope that everyone takes the time to print this article and read it. However, since many of you probably won't, I'll highlight a few key points (really, the article here is worthwhile)
prgguide.com
E-3 Enabling Market Forces
The forces at work enabling the metro DWDM market are manyfold, and range from the interoffice network demands created by increased voice and consumer Internet traffic in major metropolitan areas, to the expansion of data networks by major CLECs and long-haul carriers in the U.S. and Europe. As became evident in the long-haul DWDM marketplace three years ago, the most important market enabler is competition.
Competition creates two powerful forces within any telecom market:
1) The creation of enhanced services by new entrants in order to compete with incumbents,
2) The demand for infrastructure from new carriers or service providers that do not wish to lease from existing operators.
The first force creates a variety of network equipment opportunities, including broadband wireless and DSL services to small and medium-sized businesses, high-speed private line or VPN services to large corporations, or transparent LAN services to major enterprise network customers within a metropolitan area. All of these examples can be found in the U.S. today, and are setting the stage for the metro DWDM market.
The second force is more difficult to quantify, but has been witnessed in the U.S. and Europe as each of those markets became more competitive. In Europe there are at least six pan-European network operators today, with another six planning new networks within the next five years. In the U.S., a variety of carriers' carriers have emerged, along with over 100 CLECs, all building networks from scratch in order to have to greatest amount of control over their guarantees of reliability and restoration. As these new carriers build city networks in Europe and the U.S., most will choose to own their own networks, creating a rich market opportunity for metro DWDM suppliers.
From section E-4 - a future positive for the Optical Access subsidiary (Noam mentioned in the last 2 CCs that this was a current problem):
In the past component vendors found they typically had to bargain in terms of price in order to maintain relationships with established systems vendors. In the optical networks market, however, many component manufacturers are finding they have greater leverage in terms of product delivery and features rather than a simple commodity pricing structure.
Carriers are each developing their own list of requirements for metro DWDM networks, but common themes are emerging. These include:
· Lower cost infrastructure than competitors
· Shorter time for provisioning circuits, test and delivery
· Higher reliability than traditional networks
· Smaller operations and provisioning staff
· Reduced POP space requirements
Carriers, therefore, are clearly looking to metro DWDM not simply as a fiber exhaust/expansion solution, but a means of improving their networks to become more competitive. Carriers building out their data network infrastructure are particularly keen on metro DWDM because of its scalability and transparency to data formats. Where in recent years the unit of currency among carriers in the wholesale business was the DS-3, today the OC-48 is emerging as the standard circuit. That said, provisioning OC-48 circuits is costly and time-consuming over a multilayered SONET-based network. Metro DWDM is promising much simpler network management and service creation at these levels, and already carriers such as Williams, Cable & Wireless USA, and a handful of smaller CLECs are beginning to utilize DWDM systems for this purpose.
...
In sum, the North American telecommunications services market remains quite healthy, with robust growth predicted for the next five years as every sector of the industry is opened to one degree of competition or another.
Finally, the chart on page E-11 (North American Metro DWDM Market 1999-2003)is a must see.
The growth for the Metro Core and Metro Access DWDM segments just next year (NAC's focus I think) are:
Metro Access: 1999-2000 ($25.1M-$82.3M) TRIPLE
Metro Core: 1999-2000 ($57.0M-$115.4M) DOUBLE (double again in 2001)
|
