Infonetics Research: Packet optical transport and 40G represent big opportunity for non-incumbent vendors

CAMPBELL, CA, Oct 23 (MARKET WIRE) --
A new Infonetics Research study of incumbent and competitive service
providers in North America, Europe, and Asia Pacific shows that 86%
expect their packet optical transport networks to save them operational
expenditures, of which more than two-thirds expect opex savings of at
least 11% to over 50%, an important driver in today's competitive
environment.

Service providers participating in the study, Service Provider Plans for
Packet Optical Transport and 40G, named product reliability and standards
compliance as their top criteria when choosing a packet optical transport
network equipment vendor. An unusually low number of providers said they
choose vendors based on having that vendor's equipment is already
installed in their network, suggesting an opportunity for non-incumbent
vendors.

"Packet optical transport equipment -- and 40G and later 100G equipment,
for that matter -- can open the door for a vendor to gain a service
provider as a new customer for their optical equipment, breaking the
buy-from-the-current-supplier habit," commented Michael Howard, principal
analyst of Infonetics Research. "Even in these troubled economic times,
62% to 72% of service provider respondents plan to increase their 40G
spending each year between 2009 and 2011 and later, so Infonetics
recommends that manufacturers be ready with right-priced products to take
advantage of the expected expansion of 40G expenditures."

More highlights from the study:

-- In a series of questions asking service providers to rate 6 packet
optical transport network equipment vendors (Alcatel-Lucent, Cisco,
Fujitsu, Huawei, Nokia Siemens, Nortel):
-- Nortel scores highest for technology and product roadmap
-- Nokia Siemens scores highest (by a hair) for security
-- Alcatel-Lucent scores highest for management
-- An increasing number of service providers plans to invest more in packet
optical transport systems (POTS) products in the next few years
(examples of POTS products: ECI XDM, Cisco 15454 MSTP, Ciena 4200RS,
Nortel OME 6500, Siemens hiT 7080)
-- Service providers say the principal use of 40G over the next 5 years
will be to aggregate 10G flows, which reduces the number of ports
needed, and reduces management and operations costs
-- 100G optical and 100G Ethernet products will likely appear in about 2
years, first in proprietary form, then in standards form in 2011

Infonetics' study is based on formal interviews with 29 service
providers in North America, Europe, and Asia Pacific and informal
discussions with these and many other service providers during the past
12 months. About 80% of the study respondents are the primary
decision-maker or have a lot of influence on purchase decisions for
packet optical transport network equipment. A packet optical transport
network carries packet traffic, typically Ethernet, on SONET/SDH and/or
WDM gear.

Download study highlights from Infonetics' online portal at
www.infonetics.com (see Optical Networks area). For sales, contact Larry
Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.

Infonetics Research (www.infonetics.com) is an international market
research and consulting firm serving the communications industry since
1990. A leader in defining and tracking emerging and established
technologies in all world regions, Infonetics helps clients plan,
strategize, and compete more effectively.

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Press Contact:
Michael Howard
Principal Analyst, Co-Founder
Infonetics Research
(408) 583-3351
Email Contact

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