November 22, 2005 London, UK -- Ovum-RHK recently released its analysis of third quarter 2005 optical networking spending. According to the report, spending was essentially flat sequentially in what is typically a down quarter. But on an even more positive note, the firm says that year-over-year spending grew nearly 30%.
Highlights of 3Q05 results for the optical networking equipment market, according to the firm, include:
* Spending was $2.8 billion, flat with 2Q05 and up from $2.1 billion from 3Q05.
* Lucent, Nortel, and Siemens posted growth significantly above the market average.
* Cisco and Huawei both posted double-digit declines.
* North American and Latin American spending was stronger than average.
* Next-generation WDM, optical switching, and submarine line terminal segments showed substantial year-over-year growth.
"Results exceeded our expectations across nearly all regions and product segments. This is the fourth quarter in a row that optical spending exceeded $2.5 billion - a mark not seen since 2Q02," remarks Dana Cooperson, vice president of Ovum-RHK's Optical Networks division. "The market is on track to grow at least 15% in 2005, meeting or exceeding last year's growth - over the dark pit into which the market fell in 2003. The market should easily beat the $10 billion mark this year, to remain the single largest wireline telecom infrastructure equipment market."
The firm notes that market factors behind the sterling quarterly results were very broad, and that most vendors met or beat their typical 3Q revenue trends. The firm says that vendors that typically report a down 3Q, such as Alcatel and Huawei, were either flat or had lower declines than their historical trends, while the vendors who posted the largest sequential increases met or exceeded their historical trends as well as market averages.