Optical WDM market up 10 pc from year-ago first quarter

BANGALORE, INDIA: Global optical network hardware market, including SONET/SDH and WDM equipment, totaled $2.6 billion in 1Q13, finds market research firm Infonetics Research.

"The four-quarter rolling average for global optical WDM equipment revenue notched a third consecutive quarter of growth in 1Q13, and we believe the market will continue trending in a positive direction this year," notes Andrew Schmitt, principal analyst, optical, Infonetics Research.

North America was the only region to post growth in overall optical hardware revenue on a quarterly basis in 1Q13, up 7.5 per cent from 4Q12.

"On a year-over-year basis (1Q12 vs. 1Q13), total optical spending is down five per cent, but this is only a result of massive cuts in legacy (SONET/SDH) spending over the past 12 months (down 30 per cent). The WDM segment is up 10 per cent year-over year, a welcome sign that spending in this more relevant segment is returning to long-term trend levels. I won't call it a recovery until WDM revenue is up by double-digit percents for several quarters on a year-over-year basis, but 2013 is looking good, especially in North America and China, where 100G rollouts are picking up speed," Schmitt adds.

Topping the optical market share leaderboard in 1Q13 are, in alphabetical order, Alcatel-Lucent, Ciena, Fujitsu, Huawei and ZTE. Ciena is now a larger supplier of WDM gear than Alcatel-Lucent and is second only to Huawei.

Cyan, now publicly traded, grew revenue 86 per cent year-over-year. Nokia-Siemens completed its divestiture of its optical division, now called Coriant.