Despite fears, fiber-optic deployment continues to increase

June 1, 2001

The number of fiber miles deployed by carriers grew 68.7% in 2000, which followed a 55.7% growth in 1999, claims a new report from the Telecommunications Industry Association (TIA-Arlington, VA). While some analysts claim the advent of DWDM has created a fiber glut, TIA asserts that fiber sales will continue to soar.

Incumbent local-exchange carriers (ILECs) generated a good portion of the growth in fiber-optic deployments in 2000, driven by the increased use of Internet protocol (IP) applications, the expansion of integrated IP networks, and increased competition from competitive local-exchange carriers (CLECs). The ILEC market grew 97.7% in 2000 and is expected to grow 29.6% this year.

Deployment of fiber by CLECs increased 23.2% in 2000 and is projected to grow another 28.2% this year. While CLECs represent a relatively small segment of the market, they are expected to see the fastest growth over the 2000 to 2004 period.

According to the report, fiber deployment among CLECs will experience a 17.1% compound annual growth rate over the forecast period, compared to 13.2% for interexchange carriers and 12.5% for ILECs.

The report, "2001 Multimedia Telecommunications Market Review and Forecast," includes both an historical and forecasted segment-by-segment statistical breakdown of the communications industry. It also examines application/product migration from the enterprise to network services; data for spending on professional services in international markets; distribution of call-center spending by application; the market outlook for unified messaging; and more. For more information, call 703-907-7714 or visit TIA online at www.tiaonline.org.

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