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Data
Demand Drives SONET and WDM
press
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BOONTON, NJ. October 1, 1998:
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Global data traffic demands on
telecommunication carrier networks, driven in part by increasing Internet
usage, will grow at a 250 percent annual clip through 2002, providing a
significant opportunity for SDH/SONET and wave division multiplexing (WDM)
manufacturers, says a new report from Insight Research. Fiber optic SDH/SONET-layered
ring networks will continue to be the backbone for high-speed carrier
networks, but they will increasingly use WDM technology to create the
capacity to carry the expected data bandwidth demand--25 terabits per
second by 2002.
According to Insight's report
High-Speed
International Fiber Optic Communications: SDH/SONET or WDM 1998-2003,
increasing network capacity is being driven by a dramatic reduction in cost
unfolding in the transmission area. A "Photonic Moore Curve" is making
it possible to double transmission bandwidth capability every 18 months while
cutting the cost per bit per second in half every two years. At $80,000 per
month for a transcontinental T-3 line, the cost today of transporting a single
bit is about two nanodollars, or two billionths of a dollar. INSIGHT believes
that the cost will easily drop to 0.2 nanodollars per bit within three years due
to competition among carriers and technological advances such as DWDM.
"WDM will be the most cost-effective option
carriers have to provide the necessary bandwidth without installing additional
fiber," explained Robert Rosenberg, president of Insight. "We expect
WDM revenue to top $4 billion in 2002. It's what the carriers must buy to keep
up with demand," Rosenberg said.
Further forecasts of SONET, SDH, and WDM revenue
are published in High-Speed
International Fiber Optic Communications: SDH/SONET or WDM 1998-2003, a
250-page market research study. The report provides an overview of fiber optic
backbone network deployment around the world, including submarine systems. Also
presented are economic snapshots of most major countries, including their
teledensity, minutes of traffic, telecom service revenue, telecom investment,
and current and expected fiber optic deployment of the dominant carriers.
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Optical
Networks:
DWDM
and
SONET
2003-2008
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Grid
Computing
2003-2008
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DWDM,
SONET and Photonics: The Emerging All-Optical Network 2001-2006
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Insight
Research,
founded
in
1990,
is
a
highly
respected
source
for
telecommunications
market
research
and
strategic
analysis.
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Donna
Savino
at Insight Research
973-541-9600
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Telecom
Market
Research,
