Undersea optical equipment market continues to decline, say Probe Group analysts

14 January 2004 Cedar Knolls, NJ Lightwave -- The total undersea optical equipment market dropped from $883.2 million in 2002 to $331.8 million in 2003 as the market continues to suffer from overcapacity, operator bankruptcies, and intense pricing competition. Probe Group's new report, "Global Undersea Optical Transmission Markets, 2002-2008," examines the current state of the undersea optical market and analyses market shares for undersea optical equipment vendors.

In the boom years, the systems with the greatest capacity drove the market. "Now, network providers are looking to lower their operating expenditures," explains Maria Zeppetella, Probe Group vice president. "When operators spend on upgrades, they are more likely to choose systems that consume less power and floor space."

"While overall capacity is abundant, certain route segments are in need of additional capacity," adds Zeppetella. "Repeaterless links of less than 450 kilometers are being built for festoon and other short-range applications. There is also a possibility that a few new, repeatered long distance submarine networks will be built during the next couple of years. These signs of hope as well as the possibility of being one of the chosen vendors for a new network build have encouraged vendors to stay in the market and ride out the slow years."

Probe's report covers the transition of vendor priorities in the optical undersea market and profiles five vendors. The report is part of the firm's Optical Infrastructure Markets service, which provides ongoing coverage and analysis of the global market for optical networking equipment. For more information, visit www.probegrp.com.