IDC: MSPP Market Keeps Growing

FRAMINGHAM, Mass. -- Even as the overall optical equipment market continued to contract in 2002, the worldwide SONET/SDH multiservice provisioning platform (MSPP) market posted a 25% revenue gain to reach $1.4 billion. As early as the end of this year, MSPPs could emerge as the largest segment in next-generation optical networking, according to a new IDC study.

"In the span of three years, a market segment that began with a small California start-up has become a cornerstone of next-generation optical networking. Moving forward the MSPP segment remains positioned for further growth," said Sterling Perrin, Senior Research Analyst, Optical Networks, at IDC.

IDC forecasts that worldwide MSPP revenue will approach $1.6 billion in 2003 and will increase at a 18% compound annual growth rate to reach $3.2 billion by the end of 2007.

MSPPs are new network elements that are built on next-generation SONET/SDH technology and are designed to replace older SONET/SDH add/drop multiplexers in carrier networks. Several factors have converged to boost MSPPs, even as some other optical areas are slumping:

The findings appear in a new IDC report entitled Worldwide Multiservice Provisioning Platform Forecast and Analysis, 2003-2007 (IDC 29728). This study forecasts the five-year revenue opportunity for MSPP equipment from 2003 to 2007, breaking the market down by geographic region. The study also identifies market share leaders for 2002 on a worldwide level and in the North American market.

IDC