Optical networking market wrap up

According to Infonetics, the worldwide optical-network-hardware revenues dropped 12% to $2.6bn in1Q06 vs 4Q05, but increased 8% on a yearly base. The drop is mainly due to Alcatel sales dropping 43% sequentially in the quarter, but still increasing 10% on yearly base. The global market is split 69%/ 31% between respectively metro and long haul, and should grow 14% in annual optical-network-hardware revenue over next four years to $12.3bn by 2009. WDM hardware makes up 32% of total optical revenue. The long haul WDM market is forecast to grow again (+27% in 1Q06), as operators are starting to invest again in updating their networks with new gear that that can offer operational savings (less space, less power, automated management, …). In 2009, the long haul WDM market should reach $2.1bn.