Tunable Lasers Market Strategies and Forecasts, 2001-2006

ADC Telecommunications

ADC Broadband

Agere Systems

Agility Communications

AirFiber

Alcatel

Bandwidth9

Blue Sky Research

Calient Networks

Ciena

DBM Optics

FiberSpace

Fujitsu Network Communications

Inara Networks

Iolon

Intel

Lucent Technologies

Luminous Networks

Multiplex

Lightwave Microsystems

New Focus

Nortel Networks

Nortel / Alteon

Princeton Optronics

SpectraSensors

TeraConnect

Teraxion

Tunable Photonics

1. Tunable-Laser Market Description 1

1.1 Tunable Laser Description 1

1.2 Metropolitan Access Networks 1

1.2.1 Grooming Bandwidth 3

1.3 Lasers To Tune Across 20 To 30 Channels 3

1.4 Tunable Lasers Increase Transmission Capacity 4

1.5 Tunable Lasers Switch Wavelengths 5

1.6 DWDM 6

1.6.1 DWDM Advantages 7

1.7 Fixed Lasers 8

1.8 Continuous Wave (CW) Distributed Feedback (DFB) Lasers 15

1.9 External Cavity Lasers 16

1.10 Tunable Laser Positioning 17

1.11 Tunable Laser Advantages 18

1.12 Distributed Feedback Lasers 19

1.13 DWDM Applications For Tunable Lasers 19

1.14 Optical Signal Connectivity 22

1.15 Laser Design 23

1.16 Tunable Laser Applications And Performance Requirements 26

1.17 Distributed-Feedback Laser 30

1.18 Sampled-Grating DBR 32

1.19 Tunable-Laser Advantages And Disadvantages 33

1.20 VCSEL 34

1.21 Optochips 40

1.21.1 Laser Edge 40

Tunable Laser Market Forecasts

2. Tunable Laser Market Forecasts 1

2.1 Tunable Laser Market Analysis 1

2.2 Tunable Laser Demand 3

2.3 Tunable Laser Market Growth Factors 3

2.4 Tunable Laser Market Shares 6

2.5 Tunable Lasers Market Forecasts 9

2.6 Optical Market Overview 11

2.7 Grooming Features 12

2.8 Optical Components 14

2.9 Photonic Integrated Circuit (PIC) Market Forecast 16

2.10 Changing Internet Traffic Patterns 18

2.11 Dense Wavelength Division Multiplexing (DWDM) 22

2.12 DWDM Components 24

2.13 Transmitter/Receiver Optical Components 25

2.14 Dense Wavelength Division Multiplexing (DWDM) market segments 26

2.15 DWDM Market Shares 27

2.16 DWDM Market Forecasts 29

2.17 SONET Market Shares 31

2.18 Lighting Dark Fiber 32

2.19 All-Optical Network 33

2.20 Optical Metro Markets 33

2.21 Redefining Network Configuration 34

2.22 Impact of High Speed Networks 34

2.23 Fixed Frequency Lasers 36

2.24 Tunable Lasers as Spares 36

2.25 Provisioning Greater Number Of Wavelengths 37

2.26 Enhancing Existing Infrastructure 38

2.27 Categories of Tunable Lasers 39

2.28 Connectivity Services 42

2.29 Tunable Laser Benefits 44

3 Tunable Laser Product Descriptions 1

3.1 Laser Diode 4

3.2 Fujitsu 5

3.2.1 Fujitsu 22-Channel Single Substrate Tunable Laser 6

3.3 Agility 7

3.3.1 Agility 3040 Widely Tunable Laser 8

3.4 ADC 10

3.5 Altitun 15

3.6 Agere Systems 15

3.6.1 D2570, D2526g, D2555 Wavelength-Selected Direct Modulated Isolated DFB Laser Module 19

3.7 Metropolitan-Area Networks 21

3.8 Network Photonics 21

3.9 WaveSmith Networks 22

3.10 Iolon Apollo Widely Tunable Laser 23

3.11 Iolon Target Markets 25

3.11.1 Optimizing Optical Capabilities 26

3.11.2 Iolon Tunable Laser Technology 27

3.12 Nortel 28

3.13 SDL / JDS Uniphase 28

3.14 Avanex 28

3.15 Cao 28

3.16 Corvis 29

3.17 New Focus 29

3.18 Ciena / Cyras Target Metropolitan Networks 30

3.18.1 Cyras' K2 Trans-Metro Optical Platform 30

3.18.2 Ciena Bragg Grating Filters 31

3.19 CyOptics 32

3.20 Princeton Optronics 34

3.20.1 Princeton Lightwave 34

3.20.2 Princeton Lightwave Active Optical Components 38

3.21 Blue Sky Research 39

3.22 Bandwidth9 47

3.23 MetroFlex Line Of VCSEL 49

3.24 Altamar 50

3.25 TeraXion 51

5 Tunable Laser Company Profiles 1

5.1 ADC Telecommunications 1

5.2 ADC Broadband 3

5.2.1 ADC Revenue 3

5.2.2 ADC Positioning 4

5.2.3 Integrated Solutions 7

5.2.4 ADC Products 9

5.2.5 ADC Suite Of Systems Integration Products 10

5.2.6 ADC / Altitune 11

5.3 Agere Systems 12

5.3.1 Agere’s Integration Capabilities 13

5.3.2 Agere Research And Development 14

5.3.3 Agere Acquisitions 14

5.4 Agility Communications 16

5.5 AirFiber 18

5.6 Alcatel 18

5.6.1 Alcatel Revenue 19

5.6.2 Alcatel Market Outlook 21

5.6.3 Carrier Networking 22

5.6.4 Optics 22

5.6.5 Space & Components 23

5.6.6 Alcatel Optronics 23

5.6.7 Alcatel Optronics Revenue 24

5.6.8 Optical Subsystem Production 25

5.7 Bandwidth9 26

5.8 Blue Sky Research 26

5.9 Calient Networks 28

5.10 Ciena 28

5.10.1 Ciena Corporation Intelligent Optical Networking 28

5.10.2 Ciena All-Optical / Opto-Electronic Approach 30

5.10.3 Grooming Bandwidth 31

5.10.4 Grooming Bandwidth Strategy 32

5.10.5 Ciena Core Director 32

5.10.6 Ciena Customers 34

5.10.7 Ciena Revenue 34

5.10.8 Ciena Optical Market Approach 36

5.10.9 Integrated CoreDirector Platform 37

5.10.10 Ciena Customers 38

5.11 Ciena Modular Growth Path 38

5.11.1 World-Class Optical Assembly Capability 39

5.12 DBM Optics 39

5.13 fiberSpace 40

5.14 Fujitsu Network Communications 41

5.14.1 Fujitsu Product Positioning 42

5.15 Inara Networks 43

5.16 Iolon 45

5.17 Intel 46

5.18 Lucent Technologies 48

5.18.1 Lucent Technologies Bell Labs 48

5.18.2 Lucent Microelectronic Division 50

5.18.3 Lucent Products 50

5.18.4 Lucent Switching Solutions 51

5.18.5 Lucent Optical Networking 52

5.18.6 Networking Industry 54

5.18.7 Lucent Revenues 55

5.18.8 Revenues By Segment 2001 57

5.18.9 Lucent Technologies Revenue 1997-2000 58

5.18.10 Lucent Acquisitions 59

5.18.11 Ortel Corporation Acquisition 59

5.18.12 Spring Tide Networks Acquisition 60

5.18.13 Avaya 61

5.18.14 Sale Of Power Systems 61

5.18.15 Bell Labs 61

5.19 Luminous Networks 63

5.20 Multiplex 64

5.21 Lightwave Microsystems 65

5.22 New Focus 65

5.23 Nortel Networks 67

5.23.1 Nortel Revenue 68

5.23.2 Nortel Reorganization 69

5.23.3 Optical Internet With Nortel Networks Optical Networks Solutions 70

5.23.4 Nortel Networks Customers 70

5.23.5 Nortel Networks Open Optical Dense-Wavelength Division Multiplexing (DWDM) System 73

5.23.6 IP-Ready Open Optical Interfaces 73

5.23.7 Nortel Networks Optical Packet Network Solution 75

5.23.8 IP Data Services 76

5.24 Nortel / Alteon 77

5.24.1 Sonet/SDH 78

5.24.2 Optical IP Network Backbones 79

5.24.3 Acquisitions 79

5.24.4 Focus On Solutions 80

5.25 Princeton Optronics 80

5.26 SpectraSensors 81

5.27 TeraConnect 82

5.28 Teraxion 83

5.29 Tunable Photonics 85

Many of these Key Topics Have Phenomenal Subcategories

List of Tables and Figures

Table 1-1 7

Dwdm Broadband Bandwidth Solutions 7

Table 1-2 9

Difficulties With Fixed Lasers 9

Table 1-3 18

Tunable Laser Advantages 18

Table 1-4 20

Performance Requirements For The Transport Markets 20

Table 1-5 20

Tunable Lasers Performance Requirements 20

Table 1-6 25

Optical System Advantages 25

Table 1-7 26

Tunable Laser Applications 26

Table 1-8 26

Tunable Laser Performance Requirements 26

Table 1-9 27

Variables Impacting Tunable Laser Technology 27

Table 1-10 28

Basic Tunable Laser Structures 28

Table 1-11 29

Basic Tunable Laser Applications 29

Table 1-12 34

Features Of Tunable Laser Technologies 34

Table 1-13 39

Advantages Of VCSEL 39

Table 2-1 2

Reasons Tunable Lasers Replace Fixed Wavelength Lasers

Table 2-2 4

Tunable Laser Competitive Advantage Market Factors

Table 2-3 5

Tunable Laser Market Growth Factors

Figure 2-4 7

Tunable Laser Market Shares, 2000

Table 2-5 7

Tunable Laser Market Shares, 2000

Figure 2-6 10

Market Forecasts, 2000-2006

Table 2-7 10

Market Forecasts, 2000-2006

Figure 2-8 15

Worldwide Optical Component Market Forecasts, 2000-2006

Table 2-9 15

Worldwide Optical Component Market Forecasts, 2000-2006

Figure 2-10 17

PIC Market Forecasts, 2000-2006

Table 2-11 17

PIC Market Forecasts, 2000-2006

Figure 2-12 19

Internet Traffic Market Forecasts

Table 2-13 20

Internet Traffic Growth, 2000-2006

Table 2-14 21

Systems Used To Achieve Fiber Optic Scalability

Table 2-15 27

Optical Networking System Market Segments

Figure 2-16 28

DWDM Market Shares, 2000

Table 2-17 29

Global DWDM Landline Market Shares, 2000

Figure 2-18 30

DWDM Market Forecasts, 2000-2006

Table 2-19 30

Global DWDM Market Shipment Forecasts, 2001-2006

Figure 2-20 31

Sonet Market Forecasts, 2000-2006

Table 2-21 32

Sonet Equipment Market Forecasts, 2000-2006

Table 2-22 35

Impact of Optical Switching on FP Transport Speeds

Table 2-23 39

Categories Of Tunable Lasers

Table 2-24 40

Organization Of Tunable Laser Markets

Distributed Feedback (DFB) Lasers

Table 2-25 44

Tunable Laser Benefits

List of Tables and Figures (Continued)

Table 3-1

Tunable Laser Features, Issues, And Functions

Table 3-2

Engineering Challenges Of Tunable Lasers

Table 3-3

Possible Benefits Of The Agility 3040

Table 3-4

Key Features Of ADC's Anywave® Laser Family

Table 3- 5

Agere Systems Tunable Laser Features

Table 3-6

Agere Systems Tunable Laser Applications

Table 3-7

Agere Systems Electrical/Optical Characteristics

Table 3-8

Iolon Target Markets

Table 3-9

Princeton Lightwave BGC Product Characteristics

Table 3-10

Tunable Lasers Engineering Challenges Addressed By Blue Sky Research

Table 3-11

Blue Sky Research Electrical Tuning Mechanism

Table 3-12

Blue Sky Research Programmable Laser Positioning

Table 3-13

Programmable Laser Specifications

Table 4-1 11

Selected Optical Add / Drop Parameters For Tunable Lasers 11

Table 4-2 11

Selected Switching Tunable Laser Parameters 11

Table 4-3 12

Selected Metropolitan Tunable Laser Parameters 12

Table 4-4 12

Selected Long Haul Tunable Laser Parameters 12

Table 4-5 13

Selected Ultra Long Haul Tunable Laser Parameters 13

Table 5-1 2

ADC Mems Switch Positioning

Table 5-2 5

ADC Broadband Infrastructure And Access

Table 5-3 7

ADC Positioning Of Integrated Solutions

Table 5-4 16

Agility Tunable Laser Solutions Positioning

Table 5-5 17

Agility Integration Of Optical Components

Table 5-6 33

Ciena CoreDirector Functions Supported

Table 5-7 47

Intel Photonics Company Acquisitions

Table 5-8 49

Lucent Markets

Table 5-9 51

Lucent Primary Switching Solution Products

Table 5-10 53

Lucent Primary Optical Networking Products

Table 5-11 65

New Focus High-Power Tunable Laser Functions

Table 5-12 66

Selected Applications For Tunable Lasers

Table 5-13 70

Nortel Networks Acquisitions

Table 5-14 70

Nortel Networks Customers

Table 5-15 84

TeraXion Positioning

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.

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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TUNABLE LASER MARKET STRATEGIES AND FORECASTS, 2001-2006

REPORT NO. S90320009520 250+ PAGES 75 TABLES AND FIGURES 2001

Photograph by Devin Satterfield