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Optical/IP

RHK: Nortel Leads Euro WDM Market

S. SAN FRANCISCO, Calif. -- New market share data released this week by telecom market research firm RHK Inc., shows shipments of WDM equipment for the European market in 2000 year-end were led by Nortel with a 31% market share, followed by Lucent at 19%, Alcatel at 17% and Ciena at 16%. Europe's continued pan-European network build-outs stemming from deregulation and increased global connectivity resulted in the WDM market climbing to $1.745 billion in 2000, more than doubling 1999 shipments.

"Last year was a milestone year for Europe with 80% of the pan-European pure-play operators completing network build-outs," commented RHK Director of European Optical Transport, Stéphane Téral. "As a result, the market for WDM equipment more than doubled in 2000." He adds, "In 2001, we expect to see a greater concentration on network expansion by incumbent PTTs and an increase in global connectivity through transoceanic links."

RHK's findings show Nortel captured the number one position in Europe, displacing Ciena. Nortel increased its market share from 23% in 1999 to 31% in 2000. Its success was also driven by the combination of STM-64 MS-SPRings topology, integrated DWDM/SDH systems pan-European pure-play build-outs. Lucent further enhanced its number two position in 2000, growing from 17% to 19%, by leveraging its strong relationship with Deutsche Telekom, by demonstrating solid 40 Gbps capabilities for future systems, and providing customers with attractive financing packages. Alcatel, with a 17% share, up from 13% in 1999, secured its position by building a broad customer base and implementing a global approach to undersea transport. Ciena, the number one supplier at 35% in 1999, saw its market share reduced to 16%. Although Ciena's share decreased, its revenues almost doubled with the success of its high-channel count DWDM system, metro core equipment, strong customer support and metro access system. Marconi increased its position from 2% in 1999, up to 6% in 2000, as a result of expanding its geographic coverage through its acquisition of Bosch and Nokia transmission groups, and creating a clear product roadmap to 40 Gbps. Sycamore, Siemens and others followed with a combined 11% of the market.

http://www.rhk.com
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