BOSTON -- The introduction of optical networking systems in the metropolitan area will leverage technology to reduce costs for the incumbent service providers and allow the rapid generation of revenue for the greenfield operators. Over time, optical networks will replace copper based infrastructure to supply unprecedented bandwidth flexibility and capacity at lower costs. As standards and materials science mature, interoperability and efficiency will become a reality. The next generation infrastructure will allow those forward-looking providers to compete when the demand for flexible bandwidth arises. This Yankee Group Report, "A First Look at Managed Optical Service Infrastructure", examines the need to provide managed optical services, the early adopters as well as the changes required in hardware, software and network architecture. According to Marian Stasney, a senior analyst for the Yankee Group's Carrier Convergence Infrastructure research and consulting practice, "2001 could be characterized as the year of the Metro. While spending on the metro core, access and aggregation is at least 20% of total capital expenditure, it is also true that switches, routers, cross-connects and SONET equipment for the metro region is as much as three times less expensive than long haul equivalents." The Report finds that as more fiber reaches the last hundred yards in the top metropolitan areas, service providers are seriously considering a wavelength services offering. Stasney adds, "Advances in optical physics are moving at a rapid pace. Vendors are playing a critical role in the development and maturation of the standards and technologies needed to enable the transition of the metro network to an optical infrastructure. All of this bodes well for the advancement of the manageable optical network".The Yankee Group