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Optical Transport Equipment Market Revenues Declined in the Third Quarter

Metro Equipment and 40 Gbps to Drive Growth in 2010

Redwood City, Calif. – November 23, 2009 – According to a newly published report by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, worldwide optical market revenues were just under $3 billion in the third quarter of this year, a 4 percent decline over the second quarter of this year. The demand for optical transport equipment stabilized in North America where revenues have increased in the two most recent quarters. Asia Pacific continues to be the largest region for optical transport equipment with nearly 40 percent of worldwide market revenues.

“We believe that the optical market is recovering, and forecast steady improvements in year-over-year growth rates as well as a return to positive year-over-year growth by the first quarter of 2010,” said Jimmy Yu, Director of Optical Transport research at Dell’Oro Group. “We expect the 2010 optical sales recovery to be primarily led by increased demand for metro equipment, such as WDM Metro systems and Multiservice SONET/SDH systems, and 40 Gbps wavelengths. The DWDM Long Haul market may continue to be weak through 2010, but with continued strength in 40 Gbps wavelengths,” Yu added.

The report indicates that DWDM Long Haul 40 Gbps wavelength shipments during the third quarter of this year increased more than 10 percent sequentially and 130 percent year-over-year.

About the Report

The Dell’Oro Group Optical Transport Quarterly Report offers a complete overview of the Optical Transport industry with tables covering manufacturers’ revenue, average selling prices, unit shipments Tributary/Line or Wavelength shipments (by speed up to 100 Gbps). The report tracks DWDM long haul terrestrial, WDM metro, SONET/SDH, and optical switch equipment. To purchase this report, please contact Emily Kendall, call +1.650.622.9400 x223 or email Emily@DellOro.com.

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 enable 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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