Finisar takes lead from JDSU in WSS market

BOSTON, USA: While the overall optical equipment revenue grew at a compound annual growth rate (CAGR) of eight percent since 2002, WDM ROADM-based (Wavelength-division multiplexing) (Reconfigurable optical add-drop multiplexer) optical equipment revenue increased at a CAGR of 46 percent between 2005 and 2009.

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This is according to telecom market research firm Infonetics Research released the first edition of its 2010 biannual ROADM Components report, which tracks the Reconfigurable optical add/drop multiplexer optical network equipment market and the wavelength selective switch (WSS) components within it, measured by spacing technology and degree-count.

Andrew Schmitt, directing analyst, optical, Infonetics Research., said: “Since the launch of Infonetics’ wavelength selective switch component reporting, JDSU had been the market share leader, but in the second half of 2009, Finisar took the lead based on the strength of its 50GHz WSS shipments (JDSU still leads for the full year 2009)."

"The transition from 100GHz to 50GHz channel spacing is accelerating, with the 50GHz segment expected to account for all future revenue and unit growth in the WSS market. With Finisar, JDSU, Capella, CoAdna and others now fielding qualified 50GHz WSS components, competition is becoming fierce,” explains Schmitt.

The WDM ROADM optical equipment market will remain the fastest growing segment of the optical equipment business, and the key component fueling growth is the wavelength selective switch (WSS), which allows wavelength route provisioning to become dynamic and protection switching to take place at the optical layer rather than the electrical layer.

Worldwide revenue from WSS components with 50GHz of channel spacing and larger degree counts (1x5 ports or larger), is forecast by Infonetics to nearly double between 2009 and 2010.

Telecom service providers are looking for tighter channel spacing to increase fiber capacity and ensure compatibility with cutting-edge WDM solutions, and want larger degree counts to provide greater flexibility as they design their networks.