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Optical networking equipment market 'slow in early 2014' - Network Cables

The global optical networking equipment market has got off to a slow start in 2014, a new report has indicated.

Research conducted by market analyst firm Ovum reveals the industry was worth $3.1 billion during the first quarter of the year.

This was down by two per cent compared to the first three months of 2013, and by 14 per cent on the final three months of last year.

Spending increases in North America were not enough to offset double-digit quarterly declines in every other region, Ovum explained.

Cisco and Infinera were the only vendors to report both quarter-over-quarter and year-over-year revenue gains.

Ciena, Alcatel-Lucent, ZTE, and FiberHome were down sequentially, but saw revenues rise compared to Q1 2013.

Coriant, Ericsson, Fujitsu, and Huawei failed to reach the revenue levels they achieved 12 months ago.

Ron Kline, principal analyst, intelligent networks at Ovum, said the growth in network bandwidth is "astounding" and the transport market is evolving to keep pace.

"The converged packet optical (CPO) segment is growing nearly as fast, and network bandwidth and 100G is quickly becoming the wavelength of choice," he stated.

Mr Kline said that, while the overall market remains flat, "the trend for CPO is anything but".

"The data centre is the new central office, and interconnecting them is a major driver of ON gear," he noted.

"Backhaul requirements for growing long-term evolution and Gigabit passive optical network deployments in the access network are also increasing demand for optical."

Mr Kline commented that 2014 is shaping up to be "a very exciting year" as metro-optimised 100G and adaptable-rate flex-spectrum 200G/400G linecards enter the market.

Written by for Comms Express, number one for network equipment on the netADNFCR-1186-ID-801727378-ADNFCR

Optical networking equipment market 'slow in early 2014' - Network Cables - Article Discussion

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