Probe: Gloom Lifting on Long Haul

CEDAR KNOLLS, N.J. -- As carriers begin to recover from the recent glut of capacity, growth will be spurred in the long haul optical equipment market. A new report from Probe Group, "Global Long Haul Optical Transport Markets, 2002-2008," forecasts the global market for long haul Synchronous Optical Network (SONET), Synchronous Digital Hierarchy (SDH) and Wavelength Division Multiplexing (WDM) equipment.

"Long haul networks have been overbuilt and still suffer from unused capacity," comments Probe Vice President Maria Zeppetella. "However, as we approach 2006, many incumbent long haul networks will reach their capacity limitations and will require upgrades with new systems."

"Probe expects that total long haul optical equipment revenues will reach $3.2 billion by 2008, with a CAGR of 5.3% from 2003 to 2008," Zeppetella continued.

"As only a gradual recovery from the fall in carrier capital spending is expected over the next five years," Zeppetella continued, "equipment vendors will emphasize the opportunity for carriers to reduce cost of ownership by using new equipment." Thanks to new components, equipment will cost less and be more energy efficient, encouraging carriers to upgrade.

Probe's recent report, "Global Long Haul Optical Transport Markets, 2002-2008," forecasts the global market for SONET, SDH and WDM equipment. This report is part of the Optical Infrastructure Markets service, which provides ongoing quantitative and competitive analysis of the optical equipment market.

Probe Group LLC