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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here

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To: Frank A. Coluccio who wrote (8484)10/21/2000 5:29:24 PM
From: MikeM54321  Read Replies (1) of 12823
 
Re: Optical Metro Market - SONET/SDH Still Strong in Metro Market

Thread- I wasn't quite sure where to link this post to. I ended up tying it into a short discussion(post #8484) we had on the power of legacy SONET networks. But it's also related to the metro network:

Re: Optical Access/Edge/Metro Market
Message 14601596

Hopefully I'll be able to find this post later when I need to refer to it. Everytime TLAB gets clobbered, I like to review the SONET stats I find.<g> -MikeM(From Florida)

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SONET/SDH Markets to Remain Strong Despite Competition

SCOTTSDALE, Ariz., October 17, 2000 - As competing technologies gain market share over the next few years, the Synchronous Optical Network (SONET) and Synchronous Digital Hierarchy (SDH) market will continue to thrive, according to Cahners In-Stat Group (www.instat.com). The high-tech market research firm projects that the market for SONET/SDH systems will zoom from $11.89 billion in 1999 to $31.26 billion in 2004.

"SONET/SDH market growth will be strong through 2002, but beginning in 2003, it will slow as competing solutions such as Dense Wave Division Multiplexing (DWDM) gain ground," says Doug McEuen, Industry Analyst for the Voice and Data Communications Group. SONET and its European equivalent, SDH were designed before the explosion of data services and were optimized to transmit voice signals. McEuen continues, "SONET/SDH's data solution is very inefficient, its systems are not easily scalable and are time-consuming to provision."

However, SONET is an entrenched technology, and changing the infrastructure to other technologies would be a massive, expensive endeavor. The technology, therefore, will remain important to several market segments:

--Interexchange Carriers (IXCs) - Commonly called long distance carriers, IXCs will continue to use SONET as all long-haul transport that must pass through two metro SONET rings, at the beginning and end of the signal transmission.
--Incumbent Local Exchange Carriers (ILECs) - The regional Bell Operating Companies (RBOCs) that dominate local calling services will continue to use SONET in metro markets where it is deeply entrenched.
--Competitive Local Exchange Carriers (CLECs) - Some focus on data service, but like ILECs, CLECs do business in metro markets that will require the use of SONET for many years to come.
--Internet Service Providers (ISPs) - The growth of the Internet and e-commerce will require the use of SONET systems for effective and efficient service guarantees.

instat.com
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