Sharp Rise Predicted in Demand for Long-Haul Optical Networking Equipment

BOSTON, Nov. 23 -- Despite an anticipated recession, market opportunities for long haul core optical networking equipment will remain flat in the short-term and increase substantially in the long-term, according to a report by Pioneer Consulting.

Pioneer predicts that adequate capacity in backbone networks, a shift in emphasis toward metropolitan network buildouts and the soft economy have caused carriers to scale back long haul equipment purchases, but the need for carriers to migrate toward more intelligent, less costly optical equipment will keep sales stable throughout this "soft" period and cause them to increase dramatically in 2003 and beyond.

According to the report, both next-generation LH SONET and legacy LH SONET equipment (OC-48 and above) will offer the greatest market opportunities. The report said as carriers continue to purchase substantial quantities of legacy LH SONET equipment, market opportunity will reach over $7.1 billion by 2005.