SAN JOSE, Calif., Dec. 2 -- Worldwide optical network hardware revenue hit $2 billion in the third quarter of 2003, a 3 percent decrease from the second quarter, according to Optical Network Hardware, Infonetics Research's quarterly worldwide market share and forecast service. After a decline in 2003, modest growth is projected through 2006, when the market will top $10 billion, the according to the report. "The optical hardware market is stabilizing," said Michael Howard, principal analyst and co-founder of Infonetics Research. "The telecom service provider capex declines are finished or nearly finished, and they will maintain a flat-to-slow-growth in the future. We expect optical equipment spending worldwide to be relatively stable from 2003 through 2006, and in North America to level out during 2003 and then start slow growth in 2004 to 2005." The report tracks SONET/SDH, coarse wavelength division multiplexing (CWDM)/dense wavelength division multiplexing (DWDM) and passive optical network (PON) hardware. Companies tracked in this service include ADVA, Alcatel, CIENA, Cisco, Fujitsu, ECI-Lightscape, Lucent, Lumentis, Marconi, NEC, Nortel, Siemens and Tellabs. In a separate report, PON Hardware, the company reported that worldwide PON revenue reached $27 million in the third quarter, up 20 percent from the second quarter, and is forecasted to grow 180 percent to $76 million in the third quarter of 2004. Annual PON revenue is expected to grow 91 percent to $102 million between 2002 and 2003, and will top $531 million in 2006, a compound annual growth rate of 63 percent from 2001, Infonetics said. For more information, visit: www.info.infonetics.com