Broadband Access Will Drive SONET/SDH Investments

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BOONTON, NJ. April 7, 2003:

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The acceleration of broadband deployment by Verizon and other phone companies will increase demand for SONET/SDH systems, says a new market research study released by The Insight Research Corporation.  

Insight Research’s telecommunications industry analysis report, Optical Networks:  DWDM and SONET 2003-2008, indicates that a gradual return to network infrastructure investment by carriers could begin as early as the fourth quarter of 2003.  Even as carriers ratcheted back their capital spending in 2001, end-user demand for bandwidth continued to grow.  Carriers met that bandwidth demand by using up existing spare capacity in their networks.  Now that recent regulatory rulings have given local carriers the incentive to begin re-investing, Insight expects real growth to return to the optical equipment market.  Insight forecasts compounded growth from 2003 to 2008 of more than 50 percent in the SONET/SDH terminal market, and an 18 percent compounded annual growth rate in the fiber optic cable market.  

“Providers have squeezed excess capacity out of existing facilities for the last couple of years to meet bandwidth demand by their end customers,” says Robert Rosenberg, Insight Research President.  “The recent UNE-P broadband ruling gives the local carriers an incentive to begin re-investing, and local access trends are the drive wheels powering the entire telecommunications industry.  We expect SONET/SDH upgrades in metropolitan areas to become a major carrier priority,” Rosenberg concludes. 

Optical Networks:  DWDM and SONET 2003-2008 provides a detailed analysis of the worldwide market for SONET/SDH and DWDM optical transmission systems.  The study concludes that carriers will continue relying on SONET/SDH in the near-term, despite the ability of dense wavelength-division multiplexing (DWDM) technology to increase optical network capacity.  Forecasts for optical fiber deployment and the subsystems market are provided at the component level. 

An excerpt of this optical network market research report, table of contents, and ordering information are online at www.insight-corp.com/opticalnetworks.asp.   This 171-page report is available immediately for $4,195 (hard copy).  Adobe Acrobat (PDF) licenses are also offered; visit our Web site or call 973/541-9600 for details.

Next Generation 

Add-Drop Multiplexers 

2003-2008

Media Gateways, 

Signaling Gateways and 

Media Servers 2003-2008

Digital Cross Connects 

2000-2005

Donna Savino

at Insight Research