Technical Insight
Optical network vendors 'enjoying success from service provider investment'
A new report by Infonetics Research has revealed the potential for growth in 2010 of optical network hardware vendors as they strive to support such organisations' upgrades to next-generation technology.
The Optical Network Hardware report from Infonetics Research has revealed that the Asia Pacific region saw a gain in optical network hardware revenue, although on a global basis, this dropped by 14 per cent in 2009.
Strong performance in the region could reflect the success of Huawei, which was named the top-selling optical network hardware vendor of last year. The firm enjoyed the highest revenue in three out of the four quarters.
And strong success by Huawei could have proved positive for Oclaro, a tier one provider of optical and laser components and solutions, which recently revealed in a report logged with the United States Securities and Exchange Commission that for the three months ended January 2nd 2010, Huawei accounted for 15 per cent of its revenue.
The Infonetics study found that spending levels in this sector in North America and Europe, the Middle East and Africa were not as strong as they were between 2007-08.
Directing analyst at Infonetics Andrew Schmitt believes that this will change and the two regions will see "healthy growth" for 2010.
Such growth will, he says, help the optical industry experience a six to eight per cent long-term growth trend line.
The success of Oclaro and other vendors has been noted by Infonetics, which said those which sell into the optical edge market were strengthened by service provider investment into wireless services and backhaul mobile telephones.
Another optical network vendor to benefit from investment by communications providers into mobile backhaul transition is JDSU.
JDSU recently announced that its NetComplete Ethernet OAM solution has been chosen to enable cost-effective transition to evolved high-speed packet access (HSPA) and long-term evolution (LTE).
Infonetics previously stated that more than 100 operators are deploying HSPA with a number of upgrades to cope with the surge in mobile data traffic.
"JDSU is proud to deliver proven backhaul solutions to ensure service quality and a smooth transition for advanced high-speed mobile services," said Tom Smith, general manager in JDSU’s communications test and measurement business segment.
"Our solutions give mobile service providers the ability to transition to Ethernet backhaul reliably and with confidence," he added.
Recognising the importance of network operator investment, JDSU revealed that it has entered into a definitive agreement to acquire the communications test business - Network Solutions - of Agilent.
This will include the LTE, or 4G, part of the unit, as well as network verification and deployment products.
According to JDSU this will "significantly expand" its communications test market standing and bolster its position in the emerging market for LTE solutions which are need by network equipment manufacturers and wireless service providers to upgrade to next-generation technology.
"This acquisition establishes JDSU as a market leader in wireless test instruments and systems and enables us to provide customers with new innovative LTE solutions as they deploy this next-generation mobile data technology," stated Tom Waechter, president and chief executive officer of JDSU.
Plans to deploy LTE have been announced by more than 50 wireless service providers across the globe, including China Mobile, T-Mobile Germany and Verizon Wireless.
