The market for multiservice provisioning platforms (MSPPs), a new type of optical-network element designed to replace legacy SONET and add/drop multiplexers (ADMs) in metro applications, took off in 2000, growing from almost nothing to more than $1 billion in worldwide industry revenue. And the segment will continue to grow despite the current downturn, details a report by market researcher IDC (Framingham, MA). The value proposition of the MSPP as an evolutionary step in the gradual carrier migration from circuit to packet resonates particularly with the incumbent carriers that have substantial installed bases on legacy SONET.
Alcatel was the worldwide leader in the MSPP segment in 2001, capturing 31% of the $1.1-billion market. Nortel Networks ranked a close second with 30% of the market, followed by Cisco Systems at 26%. LightScape and Fujitsu rounded out the top five. In North America, Cisco was the clear market leader in 2001, winning 56% of the total revenue. Nortel captured 26%, followed by Fujitsu at 13%.
IDC expects the MSPP market to increase just 2% this year, due to severe capital spending cutbacks in North America and Europe. Stronger growth is expected with the resumption in carrier spending. MSPPs will continue to gain market share at the expense of legacy SONET ADM equipment in next-generation networks. The market will experience a 23% compound annual growth rate from 2001 to 2006, says IDC, jumping from $1.1 billion to $3.2 billion by the end of the forecast period. Growth will be driven by increased data traffic on carrier networks, the continued dominance of voice in carrier revenue streams, and the need for carriers to efficiently balance TDM voice traffic and data traffic on their networks.
For more details on the report, "Worldwide Multiservice Provisioning Platform Forecast and Analysis, 2002-2006," visit www.idc.com.