Asia-Pacific optical transport market to grow to $6.2 billion in 2001

Sept. 1, 2001

A report released by telecommunications market researcher RHK Inc. (San Francisco) predicts that the market for Asia-Pacific optical transport, including shipments for WDM, SDH/SONET, and digital crossconnect (DCS) equipment, will reach $6.2 billion in 2001, growing 57% from the $3.9 billion spent in 2000. Continued deregulation in markets such as China and India, strong demand for fixed and wireless data services, and increased Internet penetration will drive the market to $14.8 billion by 2004, according to RHK.

"Despite concerns about the health of the North American telecom market, the fundamentals for growth in the Asia-Pacific region remain strong," says Matt Walker, RHK's regional director for Asia-Pacific. "We do find Asia-Pacific is not immune from the global turmoil, and pricing pressure on network gear has spilled over to the region. Yet, our research continues to demonstrate that the Asia-Pacific market remains a significant opportunity for vendors and service providers alike. Continued deregulation in the region, restrictions on new carriers' entry into the market, and avoidance of the major debt burden experienced in North America and Europe are a few key elements supporting this growth."

RHK finds the WDM segment to be the fastest-growing area of the Asia-Pacific terrestrial optical transport market, expected to reach $1.4 billion in 2001. Leading the WDM market is Lucent Technologies, which topped the WDM market in 2000 with a 33% share, followed by Nortel Networks with 11%. SDH/SONET equipment sales are expected to reach almost $4.3 billion by 2001. Fujitsu continues to lead the market, along with Huawei and NEC.

"Across the Asia-Pacific region, the players differ in each market," says Walker. "Because of the region's cultural and commercial diversity, this is a difficult part of the world in which to succeed. However, the rewards are here for vendors who are willing to make a commitment to the region."

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