Optical access networks to provide U.S. market opportunities for wdm systems

The optical-access-network market is rapidly emerging in the United States, resulting in a steady increase in deployment of wavelength-division multiplexing (wdm) systems for local businesses and consumers, according to a report by Pioneer Consulting (Cambridge, MA). Optical Access Networks: wdm and Optical Networking for Local Loop and Cable TV Applications forecasts an increase from $76 million in 1998 to $1 billion by 2003 for the deployment of wdm systems into access networks in the United States. The forecast includes end-to-end wdm systems for enterprise, metropolitan area, local exchange carrier (lec), and local access networks.

Optical access networks improve on the traditional fiber-to-the-curb or fiber-to-the-neighborhood schemes by adding all-optical components and subsystems such as add/drop multiplexers, crossconnects, dense wdm systems, and amplifiers to create an optical layer within the access network. This layer then performs routing, switching, and crossconnect functions completely in the optical domain.

Pioneer says optical access networks have become the next logical step in the optical networking market`s evolution and present the potential for long-term growth and profits for manufacturers. But no one solution will arise that satisfies the demands of all consumers or carriers. Instead, access architecture chosen for a particular deployment will depend on the current or predicted regulatory regime, carriers` competitive environment, predicted service mix, scalability of network architecture, system costs, demographics, and embedded plant.

The report calls the present access network in the U.S. market a complex battleground of competition and uncertainty. The important forces driving the consideration and deployment of optical access networks include competition, cable congestion, increased bandwidth demand, and the availability of more affordable wdm equipment.

The Internet is the most important long-term driver of bandwidth in the access loop, with upward trends in residential and business markets. The most remarkable aspect of the Internet, says Pioneer, is its ability to impress both markets equally, despite its many limitations. Bandwidth demand is being driven to the point where wdm deployment seems almost inevitable.

Although currently dominated by long-haul carriers, viable markets will exist over the long term for wdm systems in competitive local exchange carriers, incumbent local exchange carriers, enterprise network operators and, though more limited, cable-television operators. A number of important opportunities are arising for vendors of systems, subsystems, and components in the optical-access market. As the market develops from dense wdm point-to-point solutions to true all-optical network deployments, a number of criteria must be met by access providers.

Bell Atlantic, in developing an optical network strategy, identified such criteria for optical-access deployment. According to Bell Atlantic, any new technology introduced into the network must use existing fiber plants, provide operations and management cost savings, be flexible to uncertain and chaotic demand, optimize investment, and allow evolution to the most efficient network topology in each location.

For additional information or to purchase a complete report, contact Pioneer Consulting; tel: (617) 441-3900; e-mail: [email protected]. u