Optical networking will show 'modest' recovery in 2003

Following a 28% decline in the global market for optical networking systems in 2001, sales are declining sharply again in 2002, according to KMI's new report Optical Networking Equipment, 2001-2003: Market Update.

KMI's analysis indicates the market will hit bottom this year, but growth will resume in 2003, albeit at a sluggish pace.

The carrier survey showed that about two-thirds of service providers intend to award new DWDM and OXC contracts before the end of 2003. Significantly, the majority plans to award the new contracts in the first half of 2003.

The recovery in 2003 will be modest and consolidation of service providers will continue, while the shake-out among optical-equipment vendors has barely started, the analyst believes.

The report further identifies pockets of opportunity for certain products, geographic regions, and applications.

It also details carrier feedback on important features in DWDM and OXC products, as well as how and when they will deploy this equipment in their networks.

For further information — or to purchase the report.— visit www.kmicorp.com

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