Optical Network Hardware Sales Jump 14% in 2Q

(Business News & Technology News, 29 Aug 2008)

Worldwide optical network hardware sales got back on their upward track after the usual first quarter seasonal decline, as total optical hardware revenue hit $4.1 billion in 2Q08, up 14% sequentially, according to Infonetics Research.

Infonetics' new report "Optical Network Hardware" shows that the jump in manufacturer revenue was driven by strong performances by Alcatel-Lucent, Huawei, and ZTE, in part due to increased activity in China.

"China's telecom restructuring projects and associated announcements indicate increasing optical network hardware capital investments in China over the next several years, and have started already in 2008. Optical spending by carriers in most Asia Pacific regions generally remains strong for the next few years, particularly in Korea, Japan, and Hong Kong. Carriers in India are buying more optical equipment as well, starting this year, and will continue ramping up spending over the next few years," says Michael Howard, principal analyst at Infonetics Research.

Other highlights from the report include:
- Perennial optical network hardware market leaders Alcatel-Lucent and Huawei each posted double-digit increases in worldwide optical network hardware revenue in 2Q08
- ZTE posted a huge triple-digit increase in worldwide optical network hardware revenue in 2Q08, eking past Nortel and Nokia Siemens for the #3 spot
- Packet optical transport system (POTS) hardware sales are a growing portion of the optical network hardware market, making up 11 percent of worldwide sales now, 17 percent by 2011
- ROADM gear will become commonplace in metro optical systems; WDM ROADM hardware makes up 39 percent of worldwide WDM revenue in 2Q08, and will grow in double digits through at least 2011
- Asia Pacific's share of worldwide optical network hardware revenue jumped 5 points in 2Q08 to 23 percent, while North America's share declined 5 points to 32 percent

Click here for more information on Infonetics Research