As demand catches up with current capacity, the optical networking market can expect to see reinvigorated activity through the end of the decade. In fact, analysts at KMI Research predict that after years of stagnation, this sector of networking will experience double digit growth through the end of the decade. Analysts expect the ON market to grow at a 12 percent compound annual growth rate (CAGR) through 2009. This market, which includes SONET, SDH, DWDM, DXC, and OXC products, hit $7.6 billion in 2003 and should reach $15.3 billion in 2009.

Although metro (short-distance) applications were already strong in 2003, the long-distance segment will also show a healthy near-term bounce -- especially for products such as DWDM -- as systems installed a few years ago finally fill up. Even though growth in bandwidth demand is slowing, it's still strong enough to force new equipment deployments as capacity limits are reached.

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In the context of this outlook, optical vendors have been moving forward aggressively to ride the rising tide of optical network demand.

This week, New World Network aid it will tap Digital Lightwave to deploy its Optical Wavelength Manager (OWM) to monitor the Americas Region Caribbean Optical-ring System (ARCOS). (ARCOS is an 8,600 km undersea broadband fiber-optic cable network, interconnecting the United States with Central America, South America, Mexico and the Caribbean.)

Meanwhile, Optical Solutions closed a deal with Teton Telecom of Driggs, Idaho, to use Passive Optical Networking (PON) technology to deliver fiber-fed voice, data, and digital Internet Protocol delivered TV( IPTV) services to several new subdivisions on the western base of the Teton mountain range. (Teton Telecom serves 4,000 access lines across a 597-square-mile service area straddling western Wyoming and eastern Idaho.)

Look for more and bigger deals to come.

Mexican Service Provider Taps Lucent for Metro Optical Network
Alestra officials are betting that Lucent's metro optical solutions will eliminate bottlenecks in existing metro networks.

Verizon Invests $800 Million To Deploy FTTP Networks
The company plans to offer 30, 15, and 5 megabits-per-second (Mbps) services over fiber-to-the-premise (FTTP) networks in Keller, Texas, later this summer.

Has The Time For PON Arrived?
After mighty struggles, passive optical networking may be coming into its own.

DEEP BACKGROUND

Alcatel Invests In Optical Startup Tropic - Advanced IP Pipeline

Grids At The Speed of Light - Networking Pipeline

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