Infonetics Research: Tepid WDM Growth, Slumping SONET/SDH Bog Down Optical Market in 3Q12

  Infonetics Research: Tepid WDM Growth, Slumping SONET/SDH Bog Down Optical
  Market in 3Q12

Business Wire

BOSTON -- November 16, 2012

Market research firm Infonetics Research today released preliminary analysis
from its 3rd quarter 2012 (3Q12) Optical Network Hardware vendor market share
report. (Full report with forecasts and detailed analysis will be published
November 27.)

ANALYST NOTE

“Investment in new WDM gear is growing, but it isn’t growing fast enough to
offset the accelerated declines in SONET/SDH,” notes Andrew Schmitt, principal
analyst for optical at Infonetics Research. “SONET/SDH spending hit another
all-time low in the third quarter, as architectural shifts in wireless
backhaul quicken its transition into obsolescence. Carriers aren’t allocating
scarce capital to out-of-date equipment.”

Schmitt continues: “On a brighter note, there’s an investment cycle set to
begin next year in the core network that’s based on 100G coherent and
supported by the massive ramp in 100G prototyping and trialing activities that
are already underway worldwide.”

3Q12 OPTICAL MARKET HIGHLIGHTS

  *In 3Q12, the global optical network hardware market, including WDM and
    SONET/SDH, fell 2% sequentially—the 3rd straight quarter of declines
    following 5 consecutive quarters of minor increases

       *WDM optical revenue grew 6.9% in 3Q12 from 2Q12, bolstered by a
         strong performance from Huawei
       *SONET/SDH optical spending continued its sharp fall, down 19%
         sequentially and 33% year-over-year

  *NEC, Fujitsu, and Infinera had a strong 3Q12, with revenue up by double
    digits thanks to robust ROADM equipment spending
  *Alcatel-Lucent posted its lowest-ever optical revenue results in 3Q12,
    with the majority of the decline coming from its WDM business
  *Performance in North America and EMEA (Europe, the Middle East, Africa)
    was relatively weak, although North America is expected to resume moderate
    growth in 4Q12 as AT&T and Verizon ramp spending

OPTICAL HARDWARE REPORT SYNOPSIS

Infonetics’ quarterly optical network hardware report provides worldwide and
regional market size, market share, analysis, forecasts, and trends for metro
and long haul SONET/SDH and WDM equipment, Ethernet optical ports,
SONET/SDH/POS ports, and WDM ports. Companies tracked include Adtran, ADVA,
Alcatel-Lucent, Ciena, Cisco, Cyan, ECI Telecom, Ericsson, Fujitsu, Huawei,
Infinera, NEC, Nokia Siemens Networks, Tellabs, Transmode, Tyco Telecom, ZTE,
and others. To buy the report, contact Infonetics Sales:
http://www.infonetics.com/contact.asp.

RELATED RESEARCH

  *Infonetics’ Optical Research Brief: http://bit.ly/ZCM1A6
  *ROADM WSS component market down 34% in 1H12
  *Alcatel-Lucent named top optical vendor by carriers in new Infonetics
    survey
  *Optical network spending up 15% in 2Q12; road ahead diverges sharply by
    segment

  *‛Virtualization’ coming soon to an optical network near you
  *OTN to grow to 80% of all optical spending by 2016; big P-OTS vendor
    battle brewing
  *Global spending on optical drops 23% in 1Q12; worst quarter in Europe in 5
    years
  *Optical transceiver market forecast to hit $3.3 billion in 2016
  *Operators confirm transition to OTN switching is underway

RECENT AND UPCOMING RESEARCH

Download OPTICAL report highlights, tables of contents, and prospectuses at
http://www.infonetics.com/login, or Infonetics’ Publication Calendar at
http://bit.ly/zwjcRs.

  *View Infonetics’ 2013 Market Research Lineup
  *40G/100G and ROADM Deployment Strategies: Global Service Provider Survey
  *10G/40G/100G Optical Transceivers Market Size and Forecast
  *Optical Network Hardware Market Share and Forecast
  *Telecommunications Equipment Vendor Leadership Scorecard
  *OTN and Packet Optical Hardware Market Share and Forecast
  *Fundamental Telecom/Datacom Market Drivers
  *Service Provider Capex, Opex, Revenue, and Subscribers Database

TO BUY REPORTS, CONTACT SALES:

N. America (West), Asia, Latin America: Larry Howard, larry@infonetics.com, +1
408-583-3335

N. America (East), Texas, Midwest: Scott Coyne, scott@infonetics.com, +1
408-583-3395

Europe, Middle East, Africa: George Stojsavljevic, george@infonetics.com, +44
755-488-1623

Japan, South Korea, China, Taiwan: http://www.infonetics.com/contact.asp

ABOUT INFONETICS

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 effectively.
View Infonetics’ About Us slides at http://bit.ly/QUrbrV.

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Contact:

Infonetics Research
Andrew Schmitt, +1 408-583-3393
Principal Analyst, Optical
andrew@infonetics.com
Twitter: @aschmitt