Global undersea optical transmission market expected to remain submerged until next year
Thanks to the oversupply of capacity, the global undersea optical transmission market is forecast to remain in a downward cycle in 2003, reveals a new report by Probe Research (Cedar Knolls, NJ). Although revenue will continue to drop this year, the market will slowly rebound in 2004 for a total projected growth of 39% between 2002 and 2007.
"As with terrestrial backbone networks, submarine networks were overbuilt in anticipation of exceedingly high amounts of traffic that never materialized," explains Maria Zeppetella, Probe optical infrastructure analyst. "We don't expect major network upgrades on transatlantic routes until 2005 and transpacific routes until 2006."
The financial difficulties of many submarine carriers—several of which are in bankruptcy, including 360networks, FLAG Telecom, and Global Crossing—have also affected the health of undersea optical transmission vendors. Several of these vendors are not only suppliers, but also investors in these carriers, notes Zeppetella. Much of the growth over the next few years will be attributed to repeaterless systems for festoon deployment, island linking, and wireless operators wishing to own their own submarine cable when linking short distances, she adds.
The report, "Global Undersea Optical Transmission Markets, 2001-2007: Carrier Profile," provides market sizing, vendor market shares, and forecasts by market segment. For more details, visit the company's Website, www.proberesearch.com.