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The All-Optical Network: The Role of Hybrid Transfer Nodes for Optimization in SONET, DWDM and MPLS Metro & Long Haul Networks, 2008-2013

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This study analyzes contemporary optical network equipment, compares and contrasts functionality, and presents respective market shares segmented by the leading optical transport protocols: SONET, DWDM, and MPLS. The study examines optical network developments in light of recent progress in the base technology including active and passive components, amplifiers and multiplexers.

Hybrid nodes are now playing a key role in optical networks by facilitating efficient traffic management. This study will explain how the hybrid nodes achieve superior bandwidth management through innovative technical advancements in hardware and software designs. An overview of major vendor initiatives in this space will also be provided.

In addition, the study provides a quantitative analysis of major market segments including component-level forecasts by technology type. INSIGHT’s forecasts are presented by technology and component by geographical region.


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    Report Excerpt

    1.1 The Dream and the Reality of the All-Optical Network

    The all-optical network has been talked about for years, and it is a captivating concept, but one that our research suggests will take many years and billions more dollars of investment to actually achieve.  The advantages of all-optical networks are generally recognized to be their greater flexibility in routing and switching optical signals, low cost, zero-interference processing of signals at intermediate nodes, and the elimination of the time, cost, and resources consumed in the optical-electronic-optical (O-E-O) conversion of signals. 

    The hard fact is that today the all-optical dream is still a goal—not a reality.  Even today’s state-of-the-art optical components, equipment, and protocols do not provide a flexible, scalable, and economically viable all-optical solution.   The optical communications industry is therefore walking a tightrope trying to keep the costs down while it keeps up with the ever-growing demand for capacity. 

    While the all-optical network with end-to-end optical components will undoubtedly take years to realize, optical networking engineers today are continuing to tweak, streamline, and optimize their manufacturing processes, transmission technologies, and transport protocols to find ways to match the performance and cost demands of an all-optical infrastructure.  These efforts have produced an interesting set of hybrid approaches that are being applied to optical technologies.  This report is a study of these hybrid approaches to achieve the benefits of all-optical networking by examining their technology and business prospects.

    Insight Research has identified several areas where the hybrid approach to an all-optical network is most evident:

    ·        Carrier Ethernet,

    ·        generalized multi-protocol label switching (GMPLS ),

    ·        reconfigurable add-drop multiplexers (ROADMs), and

    ·        photonic integrated circuits (PICs).

    The hybrid approaches applied in Carrier Ethernet transport, GMPLS, ROADM, and PIC represent a
    significant departure from........

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    Market Segmentation

     

    By Geography
             North America (NA)
             Asia Pacific (APC)
              Europe, Middle East, and Africa (EMEA)
              Caribbean and Latin America (CALA)

    Optical Equipment Sales
              By Region
              By Network Type

    Optical Fiber Sales
             Revenue
             By Region

    WDM Equipment Sales
             Sales Revenue by Region
             Sales Revenue by Network Type
                       Metro
                       Long Haul

    SONET/SDH Equipment Sales
             Sales Revenue by Region
             By Metro and Long Haul

    Metro Ethernet Equipment Sales
             Sales Revenue by Region

    Carrier Ethernet Equipment Sales
             Sales Revenue by Region

    ROADM Equipment Sales
             Sales Revenue by Region

    Intergrated Optics Equipment Sales
             Sales Revenue by Region


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    Table of Contents

     

    Chapter I
    EXECUTIVE SUMMARY

    1.1     The Dream and the Reality of the All-Optical Network
    1.2     Worldwide Markets for Optical Equipment

    Chapter II
    FUNDAMENTALS OF OPTICAL COMMUNICATIONS

    2.1     Introduction
              2.1.1    Thesis
    2.2    Optical Transmission Basics
              2.2.1      Total Internal Reflection
              2.2.2      Optical Fiber Modes
              2.2.3      Optical Fiber Indices
    2.3    Optical Transmission Characteristics
    2.4    Optical Communication Network
             2.4.1       Connection Patterns
             2.4.2       Transparency in Optical Networks
             2.4.3       Protection in Optical Networks
             2.4.4       Wavelength Routing and Channel Assignments
    2.5   Components of the Optical Network
    2.6   Conclusion

    Chapter III
    BASELINE OPTICAL TRANSPORT:
    GAP IDENTIFICATION & THE ROLE OF THE HYBRID

    3.1   Baseline Optical Transport Technologies:  Introduction
            3.1.1        SONET/SDH
            3.1.2        WDM
            3.1.3        MPLS
            3.1.4        Metro Ethernet
    3.2   Baseline Optical Transport Technologies:  Technology Overview
            3.2.1        SONET/SDH
                   3.2.1.1       Benefits and Features of SONET/SDH
            3.2.2        WDM
                   3.2.2.1       Benefits and Features of WDM
            3.2.3        MPLS
                   3.2.3.1       Benefits and Features of MPLS
            3.2.4        Metro Ethernet
                   3.2.4.1       Benefits and Features of Metro Ethernet
    3.3   The Gaps in the Baseline Transport Technologies
            3.3.1        SONET/SDH
            3.3.2        WDM
            3.3.3        MPLS
            3.3.4        Ethernet
    3.4  Hybrid Optical Transport Technologies:  Introduction
            3.4.1        Carrier Ethernet
            3.4.2        GMPLS
            3.4.3        ROADM
    3.5   Hybrid Optical Transport Technologies – Technology Details and Vendor Initiatives
            3.5.1        Carrier Ethernet
                    3.5.1.1      Provider Backbone Bridging–Traffic Engineering
                    3.5.1.2      Transport MPLS
            3.5.2        GMPLS
            3.5.3        ROADM
                    3.5.3.1      ROADM Generations
                    3.5.3.2      Addressing the Challenges Facing ROADM
                    3.5.3.3      Vendor Initiatives
    3.6   Conclusions
            3.6.1        Carrier Ethernet transport as Hybrids
            3.6.2        GMPLS as Hybrids
            3.6.3        ROADMs as Hybrids 

    Chapter IV
    CURRENT TECHNOLOGY GAPS AND
    THE CASE FOR A HYBRID APPROACH

    4.1   Introduction
    4.2   Conventional Optical Manufacturing Processes
            4.2.1        Processes and Materials in Fiber and Optical Component Manufacturing
            4.2.2        Scope and Extent of Automation
            4.2.3        App.of Semiconductor Materials in Optical Comp. Manufacturing
                    4.2.3.1      Indium Phosphide
                    4.2.3.2      Gallium Arsenide
            4.2.4        Case Study:  Packaging Options for 10 Gbit/s Integrated Modules
    4.3   What Is Wrong With The Current Manufacturing Processes
    4.4   The Hybrid Approach:  Photonic Integrated Circuits
            4.4.1        Advantages Offered by PICs
            4.4.2        What is Driving Acceptance of PICs?
    4.5   PIC–Technology Details
            4.5.1        Integrated Optics
            4.5.2        PIC Substrates and Materials
            4.5.3        Types of PIC
                    4.5.3.1      Monolithic Integration
                    4.5.3.2      Hybrid Integration
            4.5.4        Dual Approaches:  PLC versus InP
            4.5.5        Nano-Positioning and Nano-Alignment
            4.5.6        Technical Challenges for PICs
            4.5.7        Vendor Initiatives
    4.6   Conclusion:  PICs as Hybrids 

    Chapter V
    VENDOR ANALYSIS

    5.1   Types of Optical Vendors
            5.1.1        Integrated Multi-Service Platform Vendors
            5.1.2        Specialized Component and Technology Vendors
            5.1.3        Vendor Activity Summary
    5.2   Vendor Activity Details
            5.2.1        Adva
            5.2.2        Agiltron
            5.2.3        Alcatel Lucent
            5.2.4        AMCC
            5.2.5        Broadcom
            5.2.6        Ciena
            5.2.7        Cisco
            5.2.8        Corning
            5.2.9        Corrigent
            5.2.10      Cube Optics
            5.2.11      CyOptics
            5.2.12      ECI Telecom
            5.2.13      Fujitsu Network Communications
            5.2.14      Huawei
            5.2.15      Infinera
            5.2.16      JDS Uniphase
            5.2.17      Juniper
            5.2.18      LSI Corp.
            5.2.19      Meriton
            5.2.20      NeoPhotonics
            5.2.21      Nistica
            5.2.22      Nortel
            5.2.23      PMCSierra
            5.2.24      Sycamore Networks
            5.2.25      Teraxion
            5.2.26      Xtellus 

    Chapter VI
    OPTICAL NETWORK FORECAST

    6.1   “All” Optical Networks
    6.2   Methodology of Forecast
    6.3   Data – The Critical Driver
    6.4   Overall Optical Networking Growth Indicators
            6.4.1        Worldwide Optical Equipment Sales
            6.4.2        Sales by Network Type
            6.4.3        Worldwide Optical Fiber Sales
            6.4.4        Optical Equipment Sales by Region
    6.5   Physical Layer – WDM
            6.5.1        WDM Sales by Global Region
    6.6   Data Link/Network Layer – SONET/SDH
    6.7   Data Link/Network Layer – Metro Ethernet
    6.8   Emerging Hybrid Technologies
            6.8.1        Carrier Ethernet
            6.8.2        ROADM
            6.8.3        Integrated Optics and PIC
    6.9   Conclusion 

    Table of Figures

    Chapter I

    I-1       Worldwide Optical Equipment Sales, 2008-2013

    Chapter II

    II-1       Optical Fiber Structure
    II-2       Progressive Derivation of the Critical Angle
    II-3       Total Internal Reflection in an Optical Fiber
    II-4       Single-Mode and Multimode Fibers
    II-5       Step Index and Graded Index Fibers
    II-6       Low Attenuation Windows
    II-7       OADM Configurations
    II-8       Comparative Restoration Timing Performance for Different Types of Connections
    II-9       Directional Couplers
    II-10     Functional Representation of 3-Port and 4-Port Circulators
    II-11     Parallel, Modular, Serial, and Band-Drop OADM Architecture

    Chapter III

    III-1     STS-1 Frame Structure
    III–2     STM-1 Frame Structure
    III-3     Four-Channel DWDM System
    III-4     Schematic of an MPLS Network
    III-5     Label Header Structure
    III-6     MPLS over WDM Core
    III-7     Wavelength Selection Switching 

    Chapter IV

    IV-1    Cross Section of Hybrid Laser
    IV-2    Infinera PIC
    IV-3    Infinera PIC Modules 

    Chapter VI

    VI-1      Worldwide PC Shipments, 2008-2013
    VI-2      Growth of Worldwide Internet User Base, 2008-2013
    VI-3      Worldwide Wireline and Wireless Broadband Users, 2008-2013
    VI-4      Worldwide Broadband Wireline Users, by Global Region, 2008-2013
    VI-5      Worldwide Broadband Wireless Users, by Global Region, 2008-2013
    VI-6      Growth of the Worldwide IPTV User Base, 2008-2013
    VI-7      Worldwide Online Content Revenues, 2008-2013
    VI-8      Worldwide Optical Equipment Sales, 2008-2013
    VI-9      Optical Equipment Sales, by Global Region, 2008-2013
    VI-10    Market Share of Optical Equipment Sales, by Region, 2008 and 2013
    VI-11    Optical Equipment Sales by Network Type, 2008-2013
    VI-12     Percentage of Optical Equipment Sales by Network Type, 2008
    VI-13     Worldwide Fiber Sales, 2008-2013
    VI-14     Worldwide Fiber Sales, by Global Region, 2008-2013
    VI-15     North American Optical Equipment Sales Distribution, 2008
    VI-16     European, Middle Eastern, and African Optical Equipment Sales Distribution, 2008-2013
    VI-17     Asia and Pacific Optical Equipment Sales Distribution, 2008-2013
    VI-18     Central and Latin American Optical Equipment Sales Distribution, 2008
    VI-19     Global WDM Equipment Sales, by Global Region, 2008-2013
    VI-20     Market Share of WDM Equipment Sales, 2008
    VI-21     WDM Equipment Sales as Part of Metro and Long Haul Equipment Sales, 2008-2013
    VI-22     WDM Equipment Sales as Part of Metro and Long Haul Equipment Sales, 2008 and 2013
    VI-23     Metro WDM Equipment Sales, by Global Region, 2008-2013
    VI-24     Long Haul WDM Equipment Sales, by Global Region, 2008-2013
    VI-25     Global SONET/SDH Equipment Sales Revenue, 2008-2013
    VI-26     SONET/SDH as Proportion of Metro and Long Haul Equipment Sales, 2008-2013
    VI-27     Global Metro Ethernet Equipment Sales, 2008-2013
    VI-28     Worldwide SONET and Metro Ethernet Equipment Sales, 2008-2013
    VI-29     Market Share of Metro Ethernet Equipment Sales, by Global Region, 2008-2013
    VI-30     Equipment Sales for SONET, Metro Ethernet, and Carrier Ethernet, 2008-2013
    VI-31     Global Carrier Ethernet Equipment Sales, by Global Region, 2008-2013
    VI-32     Market Share of Carrier Ethernet to All Ethernet Equipment Sales, 2008-2013
    VI-33     Global ROADM Equipment Sales, by Global Region, 2008-2013
    VI-34     Market Share of ROADM Sales, 2008-2013
    VI-35     Global Integrated Optics Component Sales, 2008-2013
    VI-36     Global PIC-based ROADM Sales, 2008-2013
    VI-37     Market Share of PIC-based ROADMs, 2008-2013

    Table of Tables
     

    Chapter III

    III-1    Interrelationship between STM, STS, OC, and Gbit/s
    III-2    ITU’s Laser Grid

    Chapter V

    V-1     Vendor Activity Summary

    Chapter VI

    VI-1    Worldwide Wireline and Wireless Broadband Users, by Global Region, 2008-2013
    VI-2    Worldwide Online Content Revenues, 2008-2013
    VI-3    Optical Equipment Sales, by Region, 2008-2013
    VI-4    Optical Equipment Sales by Network Type, 2008-2013
    VI-5    Worldwide Fiber Sales, 2008-2013
    VI-6    Worldwide Fiber Sales, by Global Region, 2008-2013
    VI-7    Global WDM Equipment Sales, by Region, 2008-2013
    VI-8    WDM Equipment Sales as Part of Metro and Long Haul Equipment Sales, 2008-2013
    VI-9    Metro WDM Equipment Sales, by Global Region, 2008-2013
    VI-10  Long Haul WDM Equipment Sales, by Global Region, 2008-2013
    VI-11  Global SONET/SDH Equipment Sales Revenue, by Global Region, 2008-13
    VI-12  Global Metro Ethernet Equipment Sales, 2008-2013
    VI-13  Global Carrier Ethernet Equipment Sales, by Global Region, 2008-2013
    VI-14  Global ROADM Equipment Sales, by Global Region, 2008-2013
    VI-15  Global PIC-based ROADM Sales, 2008-2013  


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