Net Video Drives DWDM Growth

More than half the carriers worldwide are now expanding their DWDM backbones to increase capacity, thanks largely to consumer interest in Internet video. Another big chunk of carriers, 42 percent, say that they'll start building later in 2007 or in 2008, according to a new Heavy Reading report on the long-haul DWDM market: Long-Haul DWDM: Market & Technology Outlook.

"In 2006, the long-haul DWDM market – including those systems designed for backbone networks, with spans in excess of 1,000 km – grew more than 30 percent, to approximately $1.8 billion," writes Scott Clavenna, chief analyst at Heavy Reading. This, Clavenna says, is benefitting the bottom lines of just about every optical vendor now active in the market. (See Is Infinera Ready for an IPO?)

Core network operators say residential Internet access, wholesale private-line services, and dedicated network services are placing a far bigger strain on their networks than video applications. But Clavenna says the number one core bandwidth eater reported by the carriers -- "residential Internet access" -- actually contains HTTP video like YouTube. Peer-to-peer (P2P) applications continue to eat a lot of bandwidth, of course, but reports say HTTP video now uses up even more. (See Surveys: Internet Traffic Touched by YouTube.)

"That video is not something most service providers detect and monitor directly, as it is lumped in with Web browsing, peer-to-peer file sharing, and email that comprises their residential broadband Internet service offering," Clavenna says. "However, as that Internet video becomes more commonplace, it will ultimately represent the most important bandwidth driver in the core network."

For more information on the report, please click here.

— Mark Sullivan, Reporter, Light Reading

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