Infonetics Research: Optical network hardware market hits bottom in North America; EMEA region weakens

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Mon Aug 17, 2009 2:35pm EDT 

  BOSTON, MA, Aug 17 (MARKET WIRE) -- 
Communications market research firm Infonetics Research released the
second quarter (2Q09) edition of its Optical Network Hardware report.

    ANALYST NOTE

    "The North American optical network hardware market showed signs of
improvement in 2Q09 with its first positive quarter since the end of 2007,
and a milder year-over-year decrease than we saw in the first quarter, a
positive trend. We're calling the bottom in North America. Still,
carriers, particularly in EMEA and North America, continue to spend
carefully, and the big question is whether these carriers will execute
their typical 2H09 capex budget flush. Carriers indicate that they will,
but equipment vendors we speak with express skepticism and concern. It is
very much a 'show me the money' spending environment," says Andrew
Schmitt, Infonetics Research's directing analyst for optical.

    MARKET SHARE

    "On the vendor front, Huawei held the number one position again as growth
in Asia Pacific continues to bolster its market share globally. Over the
last 12 months, Huawei derived 64% of its sales from Asia Pacific, a
region that has grown while others declined. Our prediction last quarter
that Huawei would seize the title of market share leader in 2009 is
looking safe," Schmitt added.

    OPTICAL NETWORK HARDWARE MARKET HIGHLIGHTS


--  From 1Q09 to 2Q09, worldwide optical network hardware revenue
    increased 7% to $3.4 billion
--  The success of packet optical transport system (POTS) platforms is the
    best story in the optical market for the coming years, with the segment
    growing strongly mainly due to great performances from Alcatel-Lucent,
    Fujitsu, and Tellabs
--  Longer term, Infonetics sees acceleration towards more WDM spending as
    carriers in developing nations are showing a strong preference for the
    latest generation of optical equipment
--  Carriers that used to purchase legacy equipment are starting to look
    at the latest WDM, ROADM, and packet optical transport equipment in
    conjunction with plans for 3G, LTE, and broadband deployments
    

    
REPORT SYNOPSIS

    Infonetics' quarterly optical report tracks Adtran, ADVA Optical,
Alcatel-Lucent, BTI, Ciena, Cisco, Corrigent, ECI, Ericsson, Fujitsu,
Huawei, Infinera, NEC, Nokia Siemens Networks, Nortel, Sycamore, Tejas
Networks, Tellabs, Transmode, Turin, ZTE, Xtera, and others.

    The report provides worldwide and regional market share, market size,
forecasts through 2013, and analysis for metro and long haul optical
network equipment, including SONET/SDH (ADMs and terminals, MSPPs and
crossconnects), WDM (ROADM and transport), and POTS. The report also
tracks the number of ports and revenue per port for WDM and SONET/SDH
products by speed (Ethernet, SONET/SDH/POS, WDM), from below OC48/STM1 to
100G.

    FOR MORE INFORMATION

    Log on or join: http://www.infonetics.com/login

    From the portal, go to RESEARCH, then OPTICAL.

    FOR SALES:


--  Larry Howard, Vice President: larry@infonetics.com, +1 (408) 583-3335
--  Scott Coyne, Senior Account Director, Eastern North America, Europe,
    Middle East: scott@infonetics.com, +1 408.583.3395
    

    
RELATED RESEARCH

    -- ZTE, NEC take share in Asia optical network hardware market; ZTE
passes Alcatel-Lucent

    -- Huawei takes the lead in optical network hardware market in 1Q09

    -- Internet content providers (Google, Yahoo, MSN, etc.) represent an
exciting, small but growing segment in the optical network hardware market

    Infonetics Research 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.

    Follow Infonetics on Twitter: http://twitter.com/infonetics.

    Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=1044830


Lead Analyst:
Andrew Schmitt
Directing Analyst, Optical
Infonetics Research
Email Contact
+1 408.583.3393
http://twitter.com/aschmitt

Copyright 2009, Market Wire, All rights reserved.

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