Carriers Spending More on Optical Gear
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