Dell'Oro Group forecast points to optical transport market recovery

29 January 2004 Redwood City, CA Lightwave -- According to Dell'Oro Group's recently published five-year forecast report of the optical transport equipment market, a stable market environment is forecast for optical equipment in 2004 (0-1% year/year growth), with a return to sales growth anticipated in 2005. Sales of optical transport equipment should net $7.3 billion by 2008.

29 January 2004 Redwood City, CA Lightwave -- According to Dell'Oro Group's recently published five-year forecast report of the optical transport equipment market, a stable market environment is forecast for optical equipment in 2004 (0-1% year/year growth), with a return to sales growth anticipated in 2005. Sales of optical transport equipment should net $7.3 billion by 2008.

"The market for optical transport equipment has improved and is set to exit the downturn in 2004," reports Dell'Oro Group analyst Jimmy Yu. "Metro applications of optical equipment will lead this recovery as service providers focus on winning and retaining customers through differentiated service offerings," he adds.

New service offerings will require additional investment in transport equipment, says Dell'Oro Group, including DWDM metro and SONET/SDH multi-service for new ring and aggregation points. This year, approximately 65% of optical transport equipment sales will be deployed in metro applications versus 30% three years ago at the peak of the optical market.

The recently published, "Optical Transport Five-Year Forecast Report" offers an overview of the industry with tables covering revenue, unit, and price forecasts by technology segment, including DWDM long haul, DWDM metro, SONET/SDH ADM, SONET/SDH multi-service, and optical switches. For more information, visit www.delloro.com.

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