A report from Palo Alto, Calif.-based Frost & Sullivan titled "World Fiber Optic Test Equipment Market" reveals that the market amassed revenues worth $598.1 million in 2003 and has the potential to expand to $861.8 million by 2010. The study concludes that fiber optic test equipment manufacturers need to develop customized solutions that will reduce end users' cost of testing and time to market. It suggests that they cater to niche markets and acquire a global perspective, tailoring their equipment to meet the needs of particular locations.

Innovative yet cost-effective products may help the manufacturers compete against used-equipment suppliers, the report said. Also, test instruments must be scalable in architecture so that end users do not have to continually purchase new equipment because of technological advancements.