European DWDM Sales Triple

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
  1999 2000
Nortel 23% 31%
Lucent 17% 19%
Alcatel 13% 17%
Ciena 35% 16%
Marconi 2% 6%
Others 10% 11%
Total market size $0.5 billion $1.745 billion
Source: RHK Inc., www.rhk.com

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
Belzebutt 12/4/2012 | 8:33:57 PM
re: European DWDM Sales Triple Whether you break down the numbers or not, Nortel is gaining market share and Ciena is loosing. Perhaps this shows that despite being late to market, the "big guys" can still win in the end. Even though Nortel has a low high-channel-count share, I'm pretty sure it grew (they have nowhere else to go). I'd like to see a breakdown of Ciena's numbers and see how they did compared to last year.
tryit 12/4/2012 | 8:33:56 PM
re: European DWDM Sales Triple What did Ciena do wrong ? It lost half of
its previous market share ? does this mean
it will be out of European DWDM Market in 2-3 years ?
dlharding 12/4/2012 | 8:33:56 PM
re: European DWDM Sales Triple This strikes me as more Nortel sponsored RHK hype. Are they an analyst firm or an extension of Nortel's PR firm?

Guess Ciena didn't spend as much money with them this year.
prefer_to_lurk 12/4/2012 | 8:33:55 PM
re: European DWDM Sales Triple "This strikes me as more Nortel sponsored RHK hype."

Ahh yes, the good old "it must be a conspiracy argument". Is that the best you can do ?

Nortel did over $10B in optical sales last year, way more than anybody else. Maybe that's why they're the market share leader in many categories. Or were those numbers fabricated too ?


Techhead 12/4/2012 | 8:33:53 PM
re: European DWDM Sales Triple Is the article concerning only long distance DWDM or Metro or Regional DWDM or all 3? I dont think it is very clear and that will most definately change the article's players. We know who the leaders are for metro and regional. Isnt Europe really prime territory for metro and Regional instead of long haul DWDM?
sherwood 12/4/2012 | 8:33:48 PM
re: European DWDM Sales Triple maybe CIEN isn't so great after all? need to watch for counterspin too these days.... Nortel has good brand recognition and having been in the biz for some time, there are a lot of established relationships they can leverage off of.
Belzebutt 12/4/2012 | 8:33:43 PM
re: European DWDM Sales Triple RHK says that despite loosing market share, Ciena still doubled their revenues in Europe "due to a strong product offering".

Perhaps all those who claim that this is a Nortel-sponsored study should read it before they open their mouths.
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