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Optical Transport Market Rises 22 Percent in 2005

Broad Geographic and Technology Strength Lead Market Expansion

REDWOOD SHORES, Calif. – February 22, 2006 –According to a newly published report by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, the worldwide Optical Transport market grew 22 percent in 2005, with strong increases reported for all major geographic regions and technology segments. North America contributed the largest regional increase, and SONET/SDH Multiservice systems led growth in technology segments.

“Optical Transport equipment provides the network infrastructure that telecom service providers need to support the growing base of broadband Internet traffic,” said Shin Umeda, Principal Analyst for Optical Transport Research at Dell’Oro Group. “They really stepped up their spending on optical gear last year, and we expect them to continue to do so this year,” he added.

Worldwide Optical Market Leaders (Revenue)

Optical Transport Market	4Q05	Y/Y Growth
MFG Revenue	$8.4 billion	22%

Vendor	Rank	Y/Y Growth
Alcatel	1	7%
Nortel	2	15%
Huawei	3	45%
Lucent	4	12%

About the Report

The Dell’Oro Group Optical Transport Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, unit shipments Tributary/Line or Wavelength shipments (by speed OC-3/STM-1, OC-12/STM-4, OC-48/STM-16, OC-192/STM-64, OC-768/STM-256, and Other). The report tracks DWDM long haul terrestrial, DWDM metro, SONET/SDH ADM, SONET/SDH multiservice, and optical switch equipment. To purchase this report, call +1.650.622.9400.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.

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