Optical amplifier market to net $4.7 billion in 2006

December 12, 2001--The total market for optical amplifiers used as linear amplifiers on long haul and Metropolitan Area Network (MAN) applications will increase from approximately $3.3 billion in 2001 to $4.7 billion in 2006, claims a new report from Cahners In-Stat Group (Scottsdale, AZ). The market will be driven by new installations, spares, and anticipated upgrades to existing systems and the timing of such upgrades.

The total market for optical amplifiers used as linear amplifiers on long haul and Metropolitan Area Network (MAN) applications will increase from approximately $3.3 billion in 2001 to $4.7 billion in 2006, claims a new report from Cahners In-Stat Group (Scottsdale, AZ). The market will be driven by new installations, spares, and anticipated upgrades to existing systems and the timing of such upgrades.

"The importance of optical amplifiers to the efficient use of optical bandwidth in long-haul and, more recently, metro optical networking applications can scarcely be overstated," contends Richard Cunningham, senior analyst with In-Stat. "Optical amplifiers have had and will continue to have an enormous impact on the traffic-handling capacity of optical networks."

While the next 12 to 18 months will be both exciting and "fraught with some danger," says the report, In-Stat foresees that the need for fiber-based optical amplifiers used for linear amplification of optical signals will remain substantial, both for "greenfield" deployment and for system upgrades to higher data rates.

The report also reveals that:

* Raman growth is expected to be more prevalent than Erbium-doped fiber amplifier (EDFA) growth in 2003, in large part because of the smaller number of units involved on the Raman side.

* Semiconductor Optical Amplifiers (SOAs) are not expected to enter the metro transport marketplace. If they do, they are expected to capture revenue directly from the low-cost EDFAs on roughly a dollar-for-dollar basis. Opportunities in such areas as optical switching will be the natural "home" for SOAs.

* Xtera Communications appears to be the first company to offer a Raman amplifier for use in the S band.

The report, "Optical Amplifiers for Long-Haul and Metro Applications," includes descriptions EDFA and Raman amplifier components, five-year forecasts for the use of these amplifiers in both long-haul and MANs, and forecasts of total units produced and average selling prices of these units. To purchase this report, or for more information, please visit www.instat.com.

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