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Optical Internet Market to Reach $7.6 Billion by 2003
10/8/99 Purchases of dense wave division multiplexing (DWDM) and optical
crossconnects will grow to about $7.6 billion in 2003, compared to $3.5 billion
today, according to a report from Communications Industry Researchers Inc.
(CIR; Charlottesville, VA). This growth is expected to occur as DWDM evolves
from cost-saving technology into, along with optical cross-connects, an enabling
technology for the intelligent optical internetwork.
Fiber exhaust alone cannot drive the DWDM market forward, say CIR analysts,
noting that the long-haul segment of the market has matured, while significant
growth expectations for the metropolitan DWDM market segment are premature.
Most competitive local exchange carriers (CLECs) are still finding it cheaper to
install more fiber than buy DWDM systems, says the study; meanwhile, the
always cautious Baby Bells and other incumbent local exchange carriers (ILECs)
have been approaching DWDM with trepidation because of concerns about
issues such as alarm monitoring and protection schemes.
Vendors are busy dealing with such concerns, says the study, and are working
hard to bring down the cost of the technology. The most important innovations will
come from adding intelligence that will enable the interworking of DWDM
transmission systems and optical crossconnects to create an all optical
internetwork over which ATM, IP, and other traffic will travel.
For more information, contact Robert Nolan at 617-923-7611; rob@cir-inc.com.
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