Heavy Reading: Carrier Ethernet means packet optical transport sales

APRIL 11, 2008 -- Optical telecom equipment suppliers expect the continuing surge in the deployment of carrier-class Ethernet services to create strong demand for packet optical transport systems, which are set to become commercially available this year, according to the latest forecast from Heavy Reading.

APRIL 11, 2008 -- Optical telecom equipment suppliers expect the continuing surge in the deployment of carrier-class Ethernet services to create strong demand for packet optical transport systems, which are set to become commercially available this year, according to the latest forecast from Heavy Reading (search for Heavy Reading).

"Most of the recent activity in the packet optical space centers on bringing connection-oriented Ethernet functionality to market," says Sterling Perrin, Heavy Reading senior analyst and creator of the Packet-Enabled Optical Networking Quarterly Market Tracker. "Despite all the hype during the past year surrounding connection-oriented Ethernet, MPLS, T-MPLS, and PBB-TE, the functionality was just becoming available on optical transport platforms at the tail end of 2007."

Packet optical vendors announcing the availability of connection-oriented Ethernet include T-MPLS standard supporters ECI Telecom and Corrigent. Meanwhile, Alcatel-Lucent is planning T-MPLS support for its 1850 TSS product in the first quarter of 2008. On the PBB-TE front, Ciena's acquisition of World Wide Packets will result in the deployment of PBB-TE in Ciena's CN 4200 packet optical transport product, Perrin predicts.

Equipment makers are scrambling for an early advantage in the packet optical transport sector, a brand-new market that will reach $2.8 billion in annual sales by 2012, says Perrin.

Other findings include:


  • Metro/regional WDM equipment revenue totaled $639 million in 4Q07 and $2.36 billion for all of 2007, for an annual growth rate of 32.2%. Revenue growth for this sector was strongest in Europe, driven in part by the relative strength of the Euro versus the U.S. dollar.
  • Multiservice SONET/SDH revenue totaled $1.4 billion in 4Q07 and $4.98 billion for all of 2007, representing a 10.4% annual growth rate.

The latest edition of Heavy Reading's Packet-Enabled Optical Networking Quarterly Market Tracker delivers a detailed analysis of the emerging packet optical transport market and the technology suppliers gearing up to compete for market share in this equipment sector.

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