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World Fiber-Optic Component Markets Ready for Free-for-All as Deregulation and Internet Demand Sweeps the Globe
PR Newswire - August 18, 1997 08:39
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MOUNTAIN VIEW, Calif., Aug. 18 /PRNewswire/ -- It could be argued that the
information age is not on the way, but is already here. As technology speeds
ahead at a frantic pace, fiber-optic telecommunications is poised to be the
vehicle that brings information and people together around the world.
World Fiber-Optic Component Markets, strategic research by Frost &
Sullivan, predicts that the current $7.3 billion fiber-optic
telecommunications equipment market will more than double to $15.4 billion by
the year 2003.
Two global trends are primarily responsible for this increased demand.
First, deregulation of telecommunications markets, starting with the U.S.
Telecommunications Reform Act of 1996, has resulted in heightened competition,
growing market opportunities and new applications for fiber-optics. European
markets have also pursued liberalization, planning to open their
telecommunications markets by January of 1998. Internationally, a global
telecommunications agreement under the World Trade Organization will force
69 countries to open their telecommunications markets by 1998.
As countries move to modernize their telecommunications infrastructure,
fiber-optic equipment manufacturers that establish an international presence
will be well positioned to capture market share in countries building
fiber-optic networks. Eastern Europe, Brazil and China are three of the many
high-growth markets that have stated intentions of deploying large fiber
networks in the next three to four years.
"Developing nations have recognized that the establishment of an advanced
telecommunications infrastructure is critical to economic success," said Mike
Perez, technical analyst at Frost & Sullivan. "The majority of opportunities
emerging in these regions involve long-haul network applications."
The second global trend has been the rapid growth of the Internet and
other high-speed data applications. The extraordinary growth of Internet
applications, introduction of new data services and increased popularity of
work-at-home applications have all contributed to an unprecedented need for
higher carrying capacity along fiber networks. Fiber-optic equipment
manufacturers have responded with improvements in wavelength-division
mulitplexing (WDM) components, time-division multiplexing (TDM) techniques,
erbium doped fiber amplifiers (EDFAs), and non-zero dispersion-shifted fiber.
With at least 172 firms actively participating, the fiber-optic equipment
market is highly competitive. There should be sufficient opportunity for
strategically targeted companies to succeed in this market given the
projections for consistently strong growth rates. However, a trend is likely
toward acquisitions and consolidation, since service providers seek those
manufacturers that offer complete product lines.
"Customers prefer to work with one vendor and therefore desire turnkey, or
end to end, solutions that are specifically designed to accommodate their
specific requirements," said Marcie Aschbrenner, technical analyst for Frost &
Sullivan. "As a result, successful manufacturers will work closely with their
customers to create solutions that meet their particular needs."
World Fiber-Optic Component Markets segments the fiber-optic
telecommunications industry into four regions and five product markets. In
all cases the market analysis is sensitive to the unique political and
economic constraints in each region and place special emphasis on up-coming
technological innovations. The study also provides specific strategic
recommendations by department that tells competitors how they can survive in
this rapidly evolving industry.
Technologies and products covered in the study include telecommunications
fiber-optic transmitters, telecommunications laser transmitters,
telecommunications light emitting diode (LED) transmitters, telecommunications
fiber-optic cables, single-mode fiber-optic cables, multi-mode fiber-optic
cables, telecommunications fiber-optic amplifiers, electro-optic fiber
amplifiers, optic fiber amplifiers, telecommunication fiber-optic wavelength
division multiplexers (WDM), time-division multiplexers (TDM), SONET,
telecommunication fiber-optic receivers, telecommunications PIN-based
receivers, and telecommunications avalanche photo diode (APD)-based receivers.
Participants in the fiber-optic component markets include 3Com
Corporation, Aberdare Cables Pty Ltd., Act Communications Inc., Advanced
Optronics Corporation, Advanced Photonix Inc., Alcatel Network Systems Inc.,
Alcatel Optronics, Alcatel Telecommunications Cable, Alcoa Fujikura Ltd.,
Allen Telecom, Alliance Fiber Optics Product Inc., American Fibertek Inc., AMP
Incorporated, Andrew Corporation, Anritsu Wiltron Company, ANTEC Corporation,
APA Optics Inc., Artel Video Systems, ATC International, ATI Electronique, ATX
Telecom Systems, B-Catel BV, Bay Networks Inc., Belden Inc., BERK-TEK, BICC,
BIW, Cable Systems Inc., Bosch Telecom Inc., Broadband, Communications
Products Inc., Brugg Telecom Inc., Cable Design Technologies, Cabletron
Systems Inc., Chromatic Technologies Inc., Ciena Corporation, Codenoll
Technology Corporation, Coherent Inc., CommScope Inc., Communications System
Inc., Comtec Cable Accessories Ltd., Corning Inc., Danzen, DiCon Fiberoptics
Inc., Digi International, Ditech, EG&G Judson, EG&G Optoelectronics Canada,
EG&G Optoelectronics Group, EG&G Optoelectronics Group, EG&G Vactec Inc.,
Electro-Optics Technology Inc., Epitaxx Inc., Equitel, Ericsson Components AB,
E-TEK Dynamics Inc., EXB Technology Inc., Fermionics Corporation, FiberCore
Inc., Fiber Optek Interconnect Corporation, Fibersense & Signals Inc.,
Fibertron Corporation, Fibre-Data Ltd., FICO Inc., FITEL Lucent Technologies,
FOCAS, Fujikura Ltd., Fujitsu Compound Semiconductor Inc., Fujitsu Limited,
Furukawa Electric Technologies Inc., Galileo Electro-Optics Corp., GCA
Fibreoptics Ltd., GC Technologies Inc., General Photonics, Germanium Power
Devices Corporation, Gould Electronics Inc., Graseby, Greybar Inc., Harmonic
Lightwaves Inc., Hewlett-Packard, Hitachi Ltd., Hitachi America Ltd., Hitachi
Wire & Cable, Honeywell Inc., Honeywell Technology Center, IMC Networks
Corporation, Instruments S.A. Inc., IPITEK, JDS Fitel Inc., Kaifa Group Inc.,
Krone AG, Laser Diode Inc., Lasertron Inc., Lawrence Labs Ltd., Lightwave
Electronics Inc., Litecom Inc., Litton Poly-Scientific, Litton Systems Inc.,
LM Ericsson, Lucent Technologies, Mas-Tech International Incorporated,
Matsushita Electric Corp. of America, Methode Electronics Inc., Micronet,
Mitel Semiconductor Inc., Mitsubishi Cable Industries Ltd., Mitsubishi
Electric, Mohawk/CDT, Montrose CDT Products Co., Moritex USA Inc., MPB
Technologies, Inc., MP Fiberoptics Inc., MRV Communications, National Optics
Institute, NEC Corporation, Net Optics, NEW FOCUS, Newport Corporation, Nexcom
Inc., Nippon Telephone and Telegraph (NTT) Electronics Technology, Nortel
(Northern Telecom) Ltd., Northern Lights Cable Inc., NSG America Inc., Oki
Electric, Oprel Technology Incorporated, Optek Technology Inc., Optical Cable
Corporation, Optical Communications Products Inc., Optical Corporation of
America (OCA), Optigain Inc., Optivision Inc., Oriel Instruments Corporation,
Ortal Technologies Incorporated, Ortel Corporation, OZ Optics Ltd., PD-LD
Inc., Philips Broadband Networks Inc., Photonetics, Photonic Integration
Research Inc., Photonic Power Systems Inc., Photonics Corporation, Physical
Optics Corp., Pilkington plc, Pinacl Communications Inc., Pirelli Cable
Corporation, Polymicro Technologies Inc., Porta Systems Corp., QT
Optoelectronics, Remee Products Corporation, RIFOCS Corporation, Rohm
Electronics Corporation, Santec Corp., Scientific-Atlanta Inc., SDL Optics
Inc., Shimadzu Corp., Siemens AG, Siemens/Siecor Corporation, SierraCom, SMI,
Spectran Corp., SSI The Shop, Sumitomo Electric Industries Ltd., Sumitomo
Electric Lightwave Corporation, SVEC Computer Corp., Synchronous
Communications Inc., Tatsuta Electric Wire & Cable, TCL Inc., TechOptics Ltd.,
Telcom Devices Inc., Telco Systems Inc., Telect Inc., Telestra Redes
Telefonicas Ltda., Teltec Inc., Thomas & Betts Photon, Thomson Hybrides,
Toshiba, and US Fiber Optics & Telecommunications Corp. Related Companies in
the fiber-optic component markets include Alcatel ITS, AT&T Corporate
Headquarters, Embase Communications, EXFO E.O. Engineering Inc., GEC Plessey
Semiconductors, Kyocera Industrial Ceramics Corporation, MCI Communications
Corp., Opto-Electronics Inc., Pirelli S.p.A., Sprint Corporation, and US West
Inc. Industry Organizations in the fiber-optic component markets include IEEE
Lasers and Electro-Optics Society, Institute of Electrical and Electronics
Engineers (IEEE), International Telecommunications Union (ITU), Optical
Society of America, and the Telecommunications Industry Association.
Frost & Sullivan is an international marketing consulting company that
monitors the telecommunications industry for market trends, market
measurements, and strategies. The ongoing research is utilized to update a
series of research publications such as #5329-32, World Fiber-Optic Sensor
Markets, and to support industry participants with customized consulting
needs.
Report: 5270-60 Publication Date: July 1997
SOURCE Frost & Sullivan
NOTE TO EDITORS: Free executive summaries of all Frost & Sullivan
reports are available to the press.
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