Sales of dense wavelength-division multiplexing (DWDM) equipment in Europe more than tripled last year, reaching $1.745 billion, according to RHK Inc.. This is $145 million more than RHK’s previous estimate, published last December (see Nortel Spins Past Ciena).

RHK’s figures for the overall European DWDM market indicate that Nortel Networks Corp. has by far the largest share, 31 percent. Lucent Technologies Inc. (NYSE: LU), Alcatel SA (NYSE: ALA; Paris: CGEP:PA), and Ciena Corp. (Nasdaq: CIEN) follow on behind with, respectively, 19, 17, and 16 percent.

Table 1: European DWDM market

However, the overall figures don’t tell the full story, as noted previously in Light Reading.

Nortel dominates the European market for low channel-count DWDM systems because it integrates DWDM in its SDH (synchronous digital hierarchy) transmission equipment -- a market in which it’s very strong because of its lead in offering OC192 (10 Gbit/s) transmission technology.

Nortel probably has a weaker position in the European market for high channel-count DWDM systems (those supporting 40 or more wavelengths). In general, these systems are sold as standalone boxes that can be used with any vendor's SDH equipment.

RHK doesn’t break down the European DWDM market into high and low channel-count systems, but it does in North America. There, Ciena is top dog with 32 percent of the high channel-count market; Nortel has a mere 10 percent (see Nortel: Top Dog, but for How Long?).

-- Mary Jander, Senior Editor, Light Reading http://www.lightreading.com