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Firm Predicts Lackluster Profits for WDM Market

Photonics Spectra
Jun 1999
Trans-Formation Inc., a market forecasting firm specializing in transmission equipment markets, is projecting lackluster profit margins for the wavelength division multiplexing (WDM) market.

According to projections in the company's recently published report, "IXC 32-Channel and Higher WDM Market Brief," the WDM market is characterized by two attributes that negatively influence profits. Like most emerging markets, businesses incur high research and development costs. At the same time, however, the market is experiencing increased pressure to lower prices. International exchange carriers are looking to trim costs from networks at a time when demand for bandwidth is increasing.

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