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New Forecast by RHK Predicts Terrestrial DWDM Optical Components Market Will Reach $24 Billion in 2004; 4X Growth Seen in Next Four Years

Source: RHK Inc.


SOUTH SAN FRANCISCO, Calif. According to telecom market research firm RHK Inc, the worldwide market for optical components used in terrestrial dense wavelength division multiplexing (DWDM) and optical networking applications will grow from $5 billion in 2000 to nearly $24 billion by 2004. Driven by underlying growth in systems, optical content of modules, and higher-priced next-generation components, RHK expects the overall market to grow more than fourfold through 2004, with 90% growth expected next year.

RHK reports specific product segments will exhibit triple-digit growth year-over-year. New products such as Raman gain modules, 40 Gbps actives, and tunable lasers will be deployed in optical networks starting in 2001. These new products, together with next-generation products for optical bandwidth management, will grow in excess of 200% per year to over $4 billion in sales in 2004.

John Lively, senior analyst for optical components at RHK stated, "This spectacular year-over-year growth is being driven by double-digit growth in DWDM systems, multiplied by the impact of numerous system-performance improvements-such as higher channel counts and faster transmission speeds, and by increasing complexity of optical modules."

The new forecast provided to clients of RHK s Optical Components Service, encompasses the critical optical components used in terrestrial DWDM systems, including active and passive optical components, and optical modules for amplification and dispersion management. RHK s study predicts a 130% growth rate in 2000 for the market overall, with no single product category growing less than 80%. For more information about these findings or for subscription information, please contact Mike Mahan, VP Sales at 650/737-9600.

RHK Inc. is the leading industry market research and consulting firm specializing in the analysis of advanced technologies for the public telecommunications network. The company provides subscription services and custom consulting to technology vendors, service providers, and the investment community in North America, Europe, and the Asia-Pacific region. RHK s areas of expertise include: Access Networks, Core and Edge Switching & Routing, Emerging Network Architectures, New Voice Infrastructure, Optical Components, Telecom OS, SONET/SDH, WDM & Optical Networks, and other emerging technologies. RHK is based in South San Francisco, CA. For more information, visit the company s Web site at www.rhk.com.

CONTACT: RHK Inc., Lee Kurnoff/Liza Ford, 650/737-9600

RHK Inc., Lee Kurnoff/Liza Ford, 650/737-9600
Web site: http://www.rhk.com
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