LONDON -- The European market for synchronous digital hierarchy technology (SDH) is holding ground in the face of difficult market conditions. Spending is fuelled by the growth of 2.5Gb/s and 10Gb/s systems, despite some analyst predictions that next-generation transmission platforms would dampen growth in this sector. This is one of the key findings of a report published recently by RHK, a leading telecom market research firm. Revenues from the sale of SDH add/drop multiplexer (ADM) technology were broadly maintained between 2000 and 2001 ($5.1bn to $5bn) as operators continue to optimise the return on investment in existing technology platforms. The SDH ADM equipment market segment represents over 70 percent of the entire market in Europe for optical transmission equipment. Marconi (London and NASDAQ: MONI) remains the European market leader with approximately 25 percent market share. Furthermore, Marconi's SDH technology is designed to integrate seamlessly with its next generation photonics equipment, providing a natural upgrade path for customers when they decide to expand into dense wavelength division multiplexing technology (DWDM). Marconi's SDH range also has data handling capability through plug-in cards for ATM, Fast Ethernet and Gigabit Ethernet. "In today's challenging telecommunications market, where operators' capital and operating expenditure is coming under significant pressure, providers are sticking with what they know best - which, in Europe, is SDH. The technology is well proven, it provides carrier class reliability and functionality and network managers know how to drive it to best advantage," says Dave Lewis, Marconi's EVP Optical Networks. RHK Inc. Marconi PLC