European transport spending up, North American down in 3Q20: Cignal AI
Operators in Europe and North America took different approaches to transport systems spending in the third quarter of 2020, according to a new report from Cignal AI. European operators picked up their purchases of optical and packet transport equipment during the quarter, while their North American counterparts put away their checkbooks, the market research firm states in its most recent Transport Hardware Report.
Operators in Europe and the rest of the EMEA region defied expectations of a flat-to-down quarter, say Cignal AI analysts. “EMEA's packet and optical transport sales growth was bolstered by sales deferred from Q2 and raised the market overall during the third quarter,” said Scott Wilkinson, transport hardware lead analyst at Cignal AI. “The outcome was different in North America, where sales were more frontloaded in the first two quarters than in EMEA, especially by the larger operators. NA annual capex budgets are largely exhausted, producing declining sales in the second half of the year for this region.”
The double-digit gains in Europe in optical transport spending were sufficient to help the segment finish slightly in the black for the quarter. They did not have enough of a similar effect for packet transport, which declined overall during the quarter.
From a vendor perspective, Nokia in particular benefited from the upswing in EMEA optical transport hardware spending. Huawei and Juniper Networks packet transport revenues in EMEA grew by more than 20% over the year-ago.
Cignal AI’s quarterly Transport Hardware Report covers optical and packet transport equipment revenue worldwide. The initial analysis is based on financial results, independent research, and guidance from individual equipment companies. Hardware forecasts are reviewed and updated in following weeks, along with spending trends by operator type. Clients can review a summary of quarterly results as well as access real-time dashboards and Excel downloads. Additionally, subscribers to the Transport Hardware Report have access to Active Insight, Cignal AI’s news service highlighting current market events.
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Stephen Hardy | Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
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