Wavelength services revenue to increase sharply by 2005

Aug. 15, 2001--Wavelengths have evolved into a discrete product that is quickly becoming a must-have in the arsenal of wholesale and retail transport services.

In a new Yankee Group Report, "Wavelength Services: The New Smart Build," research analysts Nick Maynard and Seth Libby detail how wavelengths -- once viewed simply as a means of adding capacity to existing fiber plant -- have evolved into a discrete product that is quickly becoming a must-have in the arsenal of wholesale and retail transport services for long-haul and, increasingly, metro carriers and service providers.

Available in 2.5-gigabit and 10-gigabit offerings, wavelengths deliver the high-capacity transport capabilities of lit bandwidth and the facilities-based control of dark fiber, but at lower cost and with more flexibility in provisioning and scalability. More importantly, wavelength prices follow fluctuations in the price of comparable lit services, so they will retain their pricing advantage as bandwidth prices continue to decline.

For carriers under pressure to improve operational efficiency, wavelength services will figure more prominently in the traditional build, buy, or lease calculations of network expansion plans. And with industry competition for customers fierce, a provider's ability to offer wavelength services with faster provisioning, more competitive pricing, and more flexible contracts will also be an important demand driver. In the near term, the adoption of wavelength services will be strongest from long-haul providers, with uptake by metro providers and customers set to gain significant momentum in 2003.

About The Yankee Group:

As a provider of technology research and strategic consulting, the Yankee Group provides research and custom consulting in the fields of Internet, electronic commerce, communications, wireless, computing, and enterprise applications. For more information, visit www.yankeegroup.com.

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