Bandwidth glut denied, global fiber optic demand will remain strong, reports Insight Research
Internet bandwidth demand, which continues growing at over 100 percent per year, will eventually force carriers back into the arms of their fiber optic equipment suppliers and drive the worldwide fiber optic equipment market from just under $30 billion this year to over $70 billion by 2006, says a new report by Insight Research.
According to Insight's 201-page report, "DWDM, SONET, and Photonics: The Emerging All-Optical Network 2001-2006," low-cost dense wavelength division multiplexing (DWDM) systems are essential purchases for carriers trying to migrate their customers in metropolitan areas from voice-centric to converged networks. Metropolitan and access networks around the world are straining to keep up with bandwidth demand, so carriers will be turning to DWDM equipment.
"Doom and gloom may pervade North American carrier-supplier discourse, but we are just not buying it," says Insight president Robert Rosenberg. "The sheer number of people in Europe and Asia living in urban environments where there is, as yet, no local fiber networks will drive fiber optic growth for years. And as for a North American bandwidth glut, if there is one, it's a transitory phenomenon. The real problem facing carriers is not an oversupply of capacity but their inability to figure out a way to charge customers for anything other than voice traffic," Rosenberg says.
"DWDM, SONET, and Photonics: The Emerging All-Optical Network 2001-2006"I forecasts bandwidth demand for North American and worldwide homes and business as well as the worldwide fiber deployment by region and type of network. Worldwide SONET/SDH and DWDM equipment unit sales and terminal prices are also forecasted by metro versus long haul applications. Forecasts of subsystem revenue for transmitters, receivers, passive components and amplifiers are also provided.
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