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Metro CWDM Seen as DWDM Alternative
Jan 2003
BOSTON, Jan. 7 -- Will a "new and improved" CWDM eclipse DWDM in the metro market? Or will an upturn in the telecom sector restore metro DWDM's momentum? What will be the overall market opportunity for DWDM versus CWDM over the longer term?

A report by market researcher Pioneer Consulting explores these questions. Prior to the current economic downturn, metro dense wavelength division multiplexing (DWDM) was one of the brightest spots for equipment producers such as Alcatel, Nortel, Tellabs and Sorrento Networks, Pioneer said. However, since then demand for metro DWDM equipment has markedly cooled. At the same time, interest in a lower-tech, lower-cost alternative, coarse wave division multiplexing (CWDM), has been rekindled, according to the report, "Metro CWDM vs. DWDM: An Assessment of the Opportunities, Technology Developments and Business Cycle Impacts on Global Demand."

According to Paul Kellett, senior director of research at Pioneer, "CWDM proponents are repositioning CWDM in the market as a low-cost alternative to metro DWDM for cash-strapped carriers. We fully expect CWDM to achieve a measure of success in the metro market."

Pioneer predicts that worldwide metro WDM equipment sales will grow from $1.2 billion in 2001 to $2.3 billion in 2007.

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