Optical ­networking market topped $3.2B in 4Q06

April 1, 2007

Ovum-RHK’s preliminary analysis of 4Q06 results for optical networking equipment vendors reveals a 6% increase in revenues from the previous quarter and a 10% increase over the year-ago quarter.

Of the top vendors, Alcatel outdistanced the competition with a new high of $659 million in sales for a 20.1% share, say analysts. The newly merged Alcatel-Lucent became the first vendor to control more than 20% (24.2%) of the $11.9 billion annual optical market. Revenue for the company was up 5% sequentially and up 2% year-over-year due to Alcatel’s extremely strong performance in EMEA, most notably in WDM.

Huawei posted a 42% revenue increase over 3Q06 (23% over 4Q05) in what is traditionally a strong quarter for this competitor, say Ovum-RHK analysts. Huawei’s showing in EMEA and China was particularly strong.

Spending in the North American market slid below $1 billion for the first time since 4Q05 due to a pullback in spending from some of the largest buyers, most notably AT&T and its merged or merging entities-including Cingular and BellSouth-and Verizon. Vendors with dependence on these large North American carriers (e.g., Lucent, Siemens, and Tellabs) tended to fare worse than average in the quarter, say analysts. Only Fujitsu Network Communications weathered the quarter with only a slight decline despite its exposure.

Spending in EMEA was particularly strong in the quarter, topping $1.1 billion and outdoing expectations due to strong sales of multiservice SDH, metro WDM, and multireach (backbone) WDM gear. Vendors with good coverage across EMEA (e.g., Alcatel, Ericsson, and Huawei) tended to fare better than average in the quarter.

For more information about Ovum-RHK’s Optical Networking services, visit www.ovum.com.

Sponsored Recommendations

New Optical Wavelength Service Trends

July 1, 2024
Discover how optical wavelength services are reshaping the telecom landscape, driven by rapid expansion and adoption of high-speed connections exceeding 100 Gbps, championed by...

Data Center Interconnection

June 18, 2024
Join us for an interactive discussion on the growing data center interconnection market. Learn about the role of coherent pluggable optics, new connectivity technologies, and ...

ON TOPIC: Innovation in Optical Components

July 2, 2024
Lightwave’s latest on-topic eBook, sponsored by Anritsu, will address innovation in optical components. The eBook looks at various topics, including PCIe (Peripheral...

The Journey to 1.6 Terabit Ethernet

May 24, 2024
Embark on a journey into the future of connectivity as the leaders of the IEEE P802.3dj Task Force unveil the groundbreaking strides towards 1.6 Terabit Ethernet, revolutionizing...