Dell'Oro: Europe leads optical equipment charge

NOVEMBER 20, 2007 -- The level of spending on optical transport equipment during 2007 is on track to rise $2 billion versus last year, mainly thanks to EMEA.

NOVEMBER 20, 2007 -- A newly published report by Dell'Oro Group (search for Dell'Oro) reveals the level of spending on optical transport equipment during 2007 is on track to rise $2 billion versus last year's total. The bulk of the new spend is coming from telecom service providers in Europe, Middle East, and Africa (EMEA).

Service providers in EMEA accounted for half of the optical transport market's growth during the third quarter and first nine months of 2007, compared with the same periods in 2006.

The most notable gains during the third quarter came from Alcatel-Lucent's SONET/SDH equipment sales into EMEA, followed by Fujitsu's SONET/SDH equipment sales into EMEA and North America.

"SONET/SDH equipment continues to comprise the majority of optical market sales," said Jason Suey, analyst for optical transport research at Dell'Oro Group. "However, there are different regional trends based on competitive dynamics and overall strategy. Sales of SONET/SDH equipment are rising with European operators as they add more capacity to their existing networks. In contrast, sales of SONET/SDH equipment are declining in North America as operators shift their spend to building more-expensive higher-bandwidth WDM networks," Suey added.

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