Consolidation looms for 1310 nm transceivers
While the market is currently depressed by slack demand and lingering inventories, the report predicts that by 2007, annual transceiver sales will exceed $500 million. However, this will come as little relief to the current crop of suppliers to this market unless there is more consolidation amongst them.
"This dynamic market has not had as high a profile as that of lasers used in WDM systems, but it represents a much larger volume of lasers, and it has been steadier through the downturn," said Tom Hausken, optical communication components practice director at Strategies Unlimited. "This market appears mature, but the drive for even lower prices in the downturn combines with innovations in technology to upset the apple cart."
Datacom and telecom components converge in the 1310 nm laser market. In datacom applications, where 850 nm VCSELs are widely deployed, there is a strong demand for lower-costs, and conformation to standards. The telecom world places a high priority on performance and is dominated by Fabry-Perot and DFB lasers. The convergence of these laser technologies at 1310 nm makes the battleground especially interesting.
Strategies Unlimited suggests that outcome will depend on the ability of suppliers deliver price reductions. The adoption of long-wavelength VCSELs still awaits a breakthrough performance and manufacturing cost to beat Fabry-Perot lasers.
High Data Rate 1310-nm Lasers: Datacom and Telecom-2003 is available from Strategies Unlimited.
