Carriers Spending More on Optical Gear
Telecom operators spent a collective $4.1 billion on optical equipment during the second quarter of this year, up 17 percent compared with a year ago and 16 percent compared with the first quarter of this year, according to figures from Ovum Ltd.
Huawei Technologies Co. Ltd. was the market leader in the quarter, with sales of $900 million, giving it a 22.7 percent share. Its rival Chinese vendor ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763) had what Ovum describes as "its best ever quarter," with sales of just over $500 million.
Sales were particularly strong in the EMEA (Europe, Middle East and Africa) region: up 38 percent year-on-year and 25 percent sequentially to $1.17 billion, according to Ovum's calculations.
In the 12 months to the end of June 2011, carriers spent $15.3 billion on optical year, an 8 percent improvement on the preceding 12 months.
The North American market was worth more than $1 billion, up 18 percent compared with the second quarter of 2010, while the Asia-Pacific market was flat at $1.4 billion.
The data spells good news for the likes of Alcatel-Lucent (NYSE: ALU), Ciena Corp. (NYSE: CIEN), Infinera Corp. (Nasdaq: INFN) and Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA) as well as the Chinese vendors. (See Is Ciena on the Rebound?)
— Ray Le Maistre, International Managing Editor, Light Reading