IDC Predicts Stabilization in Optical Networks

FRAMINGHAM, Mass., Feb. 25 -- Next-generation optical networking will begin to stabilize, a major long-haul dense wave division multiplexing (DWDM) equipment vendor will exit the market and metro Ethernet will present the strongest revenue growth opportunity in 2003. These are three of the predictions for optical networking outlined in a new study by market consultant IDC, "The Optical Networks Crystal Ball: What's in Store for 2003?"

"Absence of growth in optical in 2003 should not signal that this is a market at rest," said Sterling Perrin, senior research analyst at IDC. "Next-generation optical networking is far from mature, and major shifts will likely take place throughout 2003. The events and milestones of 2003 will define the nature of the recovery to follow."

Other IDC predictions for 2003: Long-haul DWDM will contract again, but not as badly; tunable lasers will become "real"; metro Ethernet will start to challenge passive optical networks; code wave division multiplexing will challenge DWDM in metro; Cisco will make a major optical acquisition.

For more information, visit: www.idc.com