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.
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.)