High-speed bandwidth demands spur SONET/SDH test market

JULY 17, 2008 -- According to market research and consultancy firm Frost & Sullivan (search for Frost & Sullivan), the growing use of IPTV and voice over IP has created an urgent need for greater bandwidth and higher speeds. This, in turn, will boost the market for scalable, enhanced SONET/SDH test equipment.

New analysis from Frost & Sullivan, contained in the report World SONET/SDH, Next-generation SONET, OTN, and Jitter/Wander Test Equipment Markets, finds that the market earned revenues of over $156.4 million in 2007 and estimates this figure will reach $199.8 million in 2014.

New 40-Gigabit Ethernet, jitter testing, and integrated testing platforms offer great opportunities to vendors within this market, says Frost & Sullivan. However, at present, only SDH and optical transport network (OTN) can offer 40-gigabit bandwidth, which is in demand for router-to-router connections.

The growth in Ethernet remains another factor that drives bandwidth expansion in SONET/SDH, the firm says. Ethernet will likely be delivered over SONET, whether it is traditional, next generation, or OTN based. SONET/SDH will be retained because of its quality, reliability, and performance, which has yet to be replicated even with the advances in Ethernet technology, Frost & Sullivan asserts. Telecom operators have invested substantially in SONET/SDH infrastructure and are unlikely to shift to Ethernet in the near future, the company concludes.

The demand for greater bandwidth also poses a technological challenge to the telecom industry, which has to develop scalable equipment to meet these new needs. The adoption of next-generation SONET/SDH should generate considerable demand for scalable test equipment.

"One of the most difficult challenges for test and measurement vendors in the SONET/SDH test equipment market is to provide an integrated solution to conduct the various tests required during the installation and maintenance of a network," says Frost & Sullivan Program Leader Olga Yashkova. "This integrated test solution needs to offer a high price-to-performance ratio to end users."

Despite the challenges, potential exists for SONET/SDH test equipment. One growth area arises from the increased deployment of multi-service transport products in metro and core networks.

"Major service providers are continuing massive traditional SONET/SDH deployments due to the proven reliability of the technology, and large network equipment manufacturers (NEMs) are in the process of establishing, or have established, their bases in the Eastern Europe and Asia Pacific regions," says Yashkova. "These regions are expected to present increasing demand for SONET/SDH test equipment."

World SONET/SDH, Next-generation SONET, OTN, and Jitter/Wander Test Equipment Markets is part of the Test & Measurement Growth Partnership Service program, which also includes research in the following markets: World Triple Play and Next Generation Services Test and Monitoring Equipment Market, World DPI Test Equipment Market, World SONET/SDH Related Test Equipment Market, and many more. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants, Frost & Sullivan says.

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