Monday, June 06, 2005

Optical, Router Markets on the Rise

Mark Evans

The optical market, which are scuffled along since the telecom boom went bust, had first-quarter sales of US$2.3-billion, according to Infonetics Research. Alcatel continues to dominate the market, while Nortel, Fujitsu and Huawei round out the top-four. Infonetics expects the optical market will climb 4% in 2006, before rising to 16% between 2005 and 2008 when the market will hit $10-billion. The market's bright spot is metro optical, which will increase 60% between 2005 and 2008. This modes well for Fujitsu and its partner, Ottawa-based Meriton Networks, which won part of BT's $19-billion 21CN contract. Infonetics principle analyst Michael Howard said the market's rebound is being driven by the strong demand for bandwidth by consumers and businsses.
Infonetics also has robust expectations for the broadband modem, router and gateway markets. In the first-quarter, sales climbed 5% from the fourth-quarter, while unit shipments rose 5% to 24.9 million. Infonetics forecasts overall revenue will hit $5.5 billion by 2008 due to new applications and higher Internet access speeds.


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