DWDM MARKET SHARES, MARKET OPPORTUNITIES, AND MARKET FORECASTS, 2001 - 2006

 
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REPORT NO. S80510003451      175+ PAGES     50 TABLES AND FIGURES   2001      

 

Market Conditions

    Economies have slowed worldwide.  The anticipation of a revolution brought by the Internet created unrealistic expectations of market growth.  The proprietary circuit switches that cost $1 million can be replaced with a $150,000 Sun or IBM server loaded with soft switch software.

    Delay in spending for capital equipment relates in part to overcapacity.  The telecommunications industry has enormous overcapacity.  DWDM, gigabit routers, terabit routers, and fiber networks have increased the dark fiber capacity in the networks and have created a situation where profitability for service providers depends on utilizing existing plant.

    Will optical switching evolve the capability to replace electronic switching?  Will systems need to convert optical signals to electrical signals forever, or will all optical systems succeed?

    Capital spending is occurring to remove network bottlenecks and to pursue profitable revenue opportunities.  This leads to uncertainty about market directions.  This acted to create an artificially high market. 

DWDM Growth Opportunities

    DWDM growth opportunities relate to lighting dark fiber.  The ability to increase transport capacity is needed universally.  High bandwidth is needed to improve productivity and increase supply chain efficiency.

                - DWDM Growth Opportunities

                - Metro systems implementation

                - New regional markets

                - Lighting dark fiber

                - E-services demand

                - Value added services demand

                - High bandwidth demand

                - Supply chain efficiency demand

                - Metro markets are shifting as the prices for laser components come down. 

DWDM Market Shares in the First Half of 2001

    Nortel slipped in market share in this segment due to concern about need for tunable laser technology and open systems competition from Ciena.  Nortel Networks is the recognized global DWDM optical Internet leader.  Other market participants with measurable market share include Ciena, Lucent, and Alcatel.

DWDM Market Assessment

 

Photograph by Devin Satterfield

 

DWDM Market Strategies and Forecasts,  2001-2006

 

 

MOUNTAINS OF OPPORTUNITY

 

WinterGreen Research, Inc.

Lexington, Massachusetts          www.wintergreenresearch.com

 

 

 

DWDM MARKETS,

Positioning TO PARTICIPATE IN HIGH GROWTH Internet Business to Business Exchange SEGMENTS

MARKET STRATEGIES    FORECASTS TO 2006

 

 

CHECK OUT THESE KEY TOPICS

 

Integration Drives Communications Industry Restructuring

DWDM Market Strategies

DWDM Market Positioning

DWDM Market Growth Opportunities

End to End Solutions

Rules Engines Positioned As Primary Systems

DWDM Market Forecasts

Worldwide Market Shares

Mission Critical Middleware Messaging

Rule Engines

Switches, Routers, Adapters, Routing Engines

Transformation Engines, Publish Subscribe

DWDM Market Shares

DWDM Cross Platform Market Shares

 

 

 

REPORT METHODOLOGY

 

This is the Forty Seventh report in a series of market research reports that provide forecasts in communications, telecommunications, the internet, computer, software, and telephone equipment.  The project leaders take direct responsibility for writing and preparing each report.  They have significant experience preparing industry studies.  Forecasts are based on primary research and proprietary data bases.  Forecasts reflect analysis of the market trends in the segment and related segments.  Unit and dollar shipments are analyzed through consideration of dollar volume of each market participation in the segment.  market share analysis includes conversations with marketing directors, distributors, leading market participants, and companies seeking to develop measurable market share.  Over 200 in depth interviews are conducted for each report with a broad range of key participants and opinion leaders in the market segment.

 

 

Application Integration is Central to

Implementation of Business Exchanges

 

YOU MUST HAVE THIS STUDY

 

Companies Profiled


Alcatel

Ciena

Cisco Systems

Corning

Fujitsu Network Communications

JDS Uniphase

Lucent Technologies

Marconi plc

Nortel Networks

Optical Micro-Machines

Ocular Networks

PacketLight Networks

Redback Networks

Samsung / Corning Micro-Optics

Sycamore Networks

Telect

Tellium

Terabeam

 

EXECUTIVE SUMMARY DWDM

DWDM Executive Summary. ES-1

DWDM Market Executive Summary  1

Market Conditions  1

DWDM Growth Opportunities  2

DWDM Market Shares in the First Half of 2001  3

DWDM Market Forecasts  5

DWDM Market Definition and Description

1                        DWDM Market Description   1

1.1           Market Conditions  1

1.2           Industry Background  2

1.3           Wave Division Multiplexing (WDM) 2

1.4           DWDM System Functioning  3

1.5           Optical Amplifiers -- Key To WDM Cost Savings  4

1.6           Metro Versus Long-Haul WDM    5

1.7           Implications for Optical Networking  6

1.8           Information on Buying a Wavelength  7

1.8.1               Optical SONET and DWDM Systems  8

1.8.2               SONET Obsolescence  9

1.9           Transparent Metro DWDM Equipment 11

1.9.1               Increase in Data Traffic on the Public Network  13

1.9.2               Existing Public Network Transmission Infrastructure  14

DWDM Market Forecasts

2                        DWDM Market Forecasts   1

2.1           DWDM Growth Opportunities  1

2.2           Bringing Products To Market 2

2.3           DWDM Market Shares  3

2.3.1               DWDM Market Shares in 2000  3

2.3.2               DWDM Metro Market Shares in 2000  5

2.3.3               DWDM Long Distance Market Shares in 2000  7

2.3.4               DWDM Market Shares in the First Half of 2001  9

2.4           DWDM Market Forecasts  11

2.5           Lighting Dark Fiber 12

2.6           Tunable Laser Market Shares  13

2.6.1               Next Generation of Sonet Replacement 14

2.6.2               Agility Communications  15

2.6.3               Agility 3040 Widely Tunable Laser 16

2.6.4               Agere Systems  16

2.6.5               Princeton Optronics  17

2.6.6               Blue Sky Research  17

2.7           Sonet Market Shares  18

2.7.1               Sonet Market Forecasts  18

2.8           Lighting Dark Fiber 19

2.9           All-Optical Network  20

2.10         Optical Metro Markets  20

2.10.1             Redefining Network Configuration  20

2.10.2             Impact of High Speed Networks  21

DWDM Products

DWDM Products   1

3.1           DWDM Long Haul 1

3.1.1               Nortel IP/Optical Services Platform   1

3.1.2               Nortel Networks OPTera Long Haul DWDM    2

3.1.3               Carrier-Class Service Features  3

3.1.4               OPTera Long Haul 1600  6

3.1.5               OPTera Long Haul 1600 Wavelength Translators  8

3.1.6               OPTera Long Haul 1600 Optical Add/Drop  8

3.1.7               OPTera Long Haul 1600 Management 9

3.1.8               Wavelength Translator 10

3.1.9               1600G Optical Amplifier Bay  10

3.1.10             OPTera Metro 3500 Multiservice Platform   12

3.2           Lucent 40-Gigabit Optical Technology  14

3.2.1               WaveStar® OLS 80G   14

3.2.2               Lucent WaveStar® OLS 1.6T (400G/800G) 17

3.3           Alcatel and Long-Haul Sector of Choice for Initial DWDM Deployment 18

3.3.1               Alcatel 1640 OADM/WM - DWDM System   18

3.3.2               Alcatel 1686 WM - DWDM System (Regional Configuration) 19

3.3.3               Alcatel OPS - Optical Path Switch  19

3.3.4               Alcatel 1640 Optical Add/Drop Multiplexer (80/160 Channel DWDM System) 20

3.3.5               Alcatel 1686 Wavelength Multiplexer (WM) (32 Channel DWDM System) 22

3.3.6               Alcatel 1696 Metro Span - Metropolitan DWDM System   24

3.4           Cisco and Dense Wavelength Division Multiplexing  26

3.4.1               Cisco Optical Products That Support DWDM    27

3.4.2               Cisco ONS 15540 Extended Services Platform   27

3.4.3               The Metro Business Opportunity  28

3.4.4               Key Features and Benefits  29

3.4.5               Industry-Qualified  31

3.4.6               Pricing and Availability  31

3.5           DWDM Management 32

3.5.1               Ciena LightWorks DWDM Management 32

3.5.2               Corning and Nortel Networks Metro DWDM Solution  33

3.5.3               ONS 15800 Dense Wavelength Division Multiplexing Platform   34

3.5.4               System Features  35

3.5.5               Cisco ONS 15800 System Benefits  36

3.5.6               Configurable Add Drop  38

3.5.7               Flexible, Proven OC-192 (STM-64) 38

3.5.8               Multiband Architecture  39

3.5.9               Proven Operation on Multiple Fiber Types  39

3.5.10             Direct Connect To IP Routers and ATM Switches  40

3.5.11             Service and Support 40

3.6           MultiWave CoreStream   41

3.6.1               Scalable Capacity  41

3.6.2               Design Flexibility  41

3.6.3               High Reliability  42

3.7           MultiWave Metro One  43

3.8           MultiWave Sentry 4000  46

 

DWDM Technology

4                        DWDM Technology  1

4.1           Softswitches  1

4.2           Multi-Service Virtual Private Network (VPN) Service  3

4.3           Manufacturing Capabilities  4

4.4           Challenges of Telecommunications Network  5

4.5           DWDM Applications  6

4.6           DWDM Brings 40 Gbps  7

4.7           DWDM Facilitates Capacity Expansion and Flexibility  7

4.8           Capacity Expansion  9

4.9           DWDM Incremental Growth  10

4.10         Unifying Optical Layer 11

4.11         Key Characteristics of DWDM Systems  12

4.12         Silica-Based Fiber Amplifiers  13

4.13         Wavelength Upgrades  13

4.14         Optical Networking  14

4.15         Forward Error Correction  15


DWDM Company Profiles

5. DWDM Company Profiles   1

5.1           Alcatel 1

5.1.1               Alcatel Revenue  1

5.1.2               Alcatel Market Outlook  3

5.1.3               Carrier Networking  4

5.1.4               Optics  4

5.1.5               Space & Components  5

5.1.6               Alcatel Optronics  5

5.1.7               Alcatel Optronics Revenue  5

5.1.8               Optical Subsystem Production  6

5.2           Ciena  7

5.2.1               Ciena Corporation Intelligent Optical Networking  8

5.2.2               Ciena All-Optical / Opto-Electronic Approach  10

5.2.3               Grooming Bandwidth  11

5.2.4               Ciena Customers  13

5.2.5               Ciena Revenue  14

5.3           Cisco Systems  15

5.4           Corning  17

5.4.1               Corning Cable Systems Integrates Omega One Communications  17

5.4.2               Corning Cable Systems  18

5.4.3               Corning Fiber Optic Customers  18

5.4.4               Fiber Optic Products  19

5.4.5               Corning $50 Million Upgrade Optical Fiber Manufacturing Facility  19

5.4.6               Corning Expansions  21

5.4.7               Corning Acquisitions  21

5.4.8               Corning Strategy  21

5.4.9               Corning Frequency Control 22

5.5           Fujitsu Network Communications  22

5.6           JDS Uniphase  23

5.6.1               JDS Uniphase Customers  23

5.6.2               JDS Uniphase Products  23

5.6.3               Company Strategy  24

5.6.4               Acquisitions  27

5.6.5               JDS Uniphase Revenue  27

5.7           Lucent Technologies  27

5.7.1               Lucent Microelectronic Division  28

5.7.2               Lucent Products  29

5.7.3               Lucent Switching Solutions  29

5.7.4               Lucent Optical Networking  31

5.7.5               Networking Industry  33

5.7.6               Lucent Revenues  33

5.7.7               Revenues by Segment 2001  35

5.7.8               Lucent Technologies Revenue 1997-2000  37

5.7.9               Lucent Acquisitions  37

5.7.10             Ortel Corporation Acquisition  37

5.7.11             Spring Tide Networks Acquisition  38

5.7.12             Avaya  39

5.7.13             Sale of Power Systems  39

5.7.14             Bell Labs  39

5.8           Marconi plc  41

5.8.1               Marconi Digital Switch  42

5.8.2               Marconi Strategic Positioning  42

5.8.3               Marconi Optical Product Offerings  43

5.8.4               Marconi Revenue  44

5.8.5               Marconi Customers  45

5.8.6               Marconi Acquisitions  45

5.8.7               Marconi Divestiture  46

5.9           Nortel Networks  46

5.9.1               Optical Internet with Nortel Networks Optical Networks Solutions  46

5.9.2               Nortel Networks Customers  47

5.9.3               Nortel Networks Open Optical Dense-Wavelength Division Multiplexing (DWDM) System   49

5.9.4               IP-Ready Open Optical Interfaces  50

5.9.5               Nortel Networks Optical Packet Network Solution  51

5.9.6               IP Data Services  52

5.9.7               SONET/SDH   53

5.9.8               Optical IP Network Backbones  53

5.9.9               Acquisitions  54

5.9.10             Focus on Solutions  54

5.10         Optical Micro-Machines  55

5.10.1             OMM Products  55

5.10.2             OMM Revenue  55

5.10.3             OMM Customers  56

5.10.4             OMM Strategic Positioning  56

5.10.5             OMM Solution  57

5.10.6             OMM Products  59

5.10.7             OMM Customers  60

5.11         Ocular Networks  61

5.12         PacketLight Networks  62

5.12.1             SiteLight 63

5.12.2             CentraLight 63

5.12.3             BrowseLight 64

5.12.4             ControLight 64

5.13         Redback Networks  65

5.13.1             Redback Networks Products  66

5.13.2             Redback Customers  66

5.13.3             Redback Revenues  68

5.14         Samsung / Corning Micro-Optics  68

5.15         Sycamore Networks  69

5.15.1             Sycamore Products  69

5.15.2             Sycamore Vision  70

5.15.3             Sycamore Acquisitions  70

5.15.4             Sycamore Products  71

5.15.5             Sycamore Customers  71

5.15.6             Sycamore Strategy  72

5.15.7             Sycamore OMM Strategy  74

5.15.8             Sycamore Target Customer Base  75

5.15.9             Sycamore Networks Revenue  75

5.15.10           Sycamore Revenue 2000  76

5.15.11           Acquisitions  77

5.16         Telect 77

5.17         Tellium   78

5.17.1             Tellium Aurora Switch  78

5.18         Terabeam   78

Many of these Key Topics Have Phenomenal Subcategories

 

List of Tables and Figures

Market Forecasts 2001-2006              Market Shares 2000

Table ES-1  3

DWDM Growth Opportunities  3

Figure ES-2     4

DWDM Market Shares, First Half 2001    4

Table ES-3     5

Global DWDM Landline Market Shares, First Half 2001       5

Figure ES-4      6

DWDM Market Forecasts, Dollars, 2000-2006   6

 

Table 1-1  13

DWDM Service Breadth  13

 

Table 2-1  1

DWDM Growth Opportunities  1

Table 2-2  2

Market Advantage Achieved by Sustainable Product Offerings  2

Figure 2-3    4

DWDM Market Shares, 2000      4

Table 2-4     5

Global DWDM Landline Market Shares, 2000     5

Figure 2-5    6

DWDM Metro Market Shares, 2000    6

Table 2-6      7

Global DWDM Metro Market Shares, 2000    7

Figure 2-7    8

DWDM Long Distance Market Shares, 2000    8

Table 2-8    8

Global DWDM Long Distance Market Shares, 2000     8

Figure 2-9     10

DWDM Market Shares, First Half 2001     10

Table 2-10         10

Global DWDM Landline Market Shares, First Half 2001   10

Figure 2-11      11

DWDM Market Forecasts, Dollars, 2000-2006   11

Table 2-12   12

Figure 2-13   13

Tunable Laser Market Shares, 2000     13

Table 2-14    14

Tunable Laser Market Shares, 2000  14

Figure 2-15   18

Sonet Market Forecasts, 2000-2006     18

Table 2-16  19

Sonet Equipment Market Forecasts,   19

Table 2-17  21

Impact of Optical Switching on IP Transport Speeds  21


Table 3-1  1

Nortel IP/Optical Services Platform Functions  1

Table 3-2  4

Nortel DWDM Carrier-Class Service Features  4

Table 3-3  5

OPTera Long Haul 1600 Full-Time, “Five 9s” Service Availability  5

Table 3-4  17

WaveStar OLS 80G Functions  17

Table 3-5  20

Alcatel 1640 Optical Add/Drop Multiplexer (OADM) 20

Table 3-6  22

Alcatel 1686 Wavelength Multiplexer (WM) 22

Table 3-7  25

Alcatel 1696 Metro Span  25

Table 3-8  27

Cisco Optical Products That Support DWDM    27

Table 3-9  37

Cisco ONS 15800 System Benefits  37

Table 3-10  42

MultiWave CoreStream Features and Benefits  42

Table 3-11  45

MultiWave Metro One Features and Benefits  45

Table 3-12  47

MultiWave Sentry™ 4000 Features and Benefits  48

List of Tables and Figures  (Continued)

Market Forecasts 2001-2006              Market Shares 2000

Table 4-1  6

DWDM Applications  6

Table 4-2  11

Means for Carriers to Integrate the Diverse Technologies  11

 

Table 5-1  24

Key Elements JDS Uniphase Strategy  24

Table 5-2  25

JDS Uniphase Strategies To Develop Modules To Improve Customer Time-To-Market 25

Table 5-3  26

Key Elements of JDS Uniphase Strategic Positioning  26

Table 5-4  28

Lucent Markets  28

Table 5-5  30

Lucent Primary Switching Solution Products  30

Table 5-6  32

Lucent Primary Optical Networking Products  32

Table 5-7  47

Nortel Networks Acquisitions  47

Table 5-8  47

Nortel Networks Customers  47

Table 5-9  57

OMM Strategic Objectives  57

Table 5-10  58

OMM MEMS Design, Optics, Opto-Electronic Benefits  58

Table 5-11  60

OMM Customers  60

Table 5-12  61

OMM Partnerships  61

Table 5-13  71

Sycamore Key Market Segments  71

Table 5-14  72

Key Elements of Sycamore Strategy  72


about the company

 

WinterGreen Research, founded in 1985, provides strategic market assessments in telecommunications, communications equipment, health care, and advanced computer technology.  Industry reports focus on opportunities that will expand existing markets or develop major new markets.  The reports assess new product and service positioning strategies, new and evolving technologies, and technological impact on products, services, and markets.  Market shares are provided.  Leading market participants are profiled, and their marketing strategies, acquisitions, and strategic alliances are discussed.  The principals of WinterGreen Research have been involved in analysis and forecasting of international business opportunities in telecommunications and advanced computer technology markets for over 30 years.

 

about the principal authors

 

Ellen T. Curtiss, Technical Director, co-founder of WinterGreen Research, conducts strategic and market assessments in technology-based industries.  Previously she was a member of the staff of Arthur D. Little, Inc., for 23 years, most recently as Vice President of Arthur D. Little Decision Resources, specializing in strategic planning and market development services.  She is a graduate of Boston University and the Program for Management Development at Harvard Graduate School of Business Administration.  She is the author of recent studies on worldwide telecommunications markets and the Top Ten Telecommunications market analysis and forecasts.

 

Susan Eustis, President, co-founder of WinterGreen Research, has done research in communications and computer markets and applications.  She holds several patents in microcomputing and parallel processing.  She is the author of recent studies of the Regional Bell Operating Companies' marketing strategies, Internet equipment, a study of Internet Equipment, Worldwide Telecommunications Equipment, Top Ten Telecommunications, Digital Loop Carrier, Web Hosting, and Application Integration markets.  Ms. Eustis is a graduate of Barnard College.

 

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