Technological Trends and Vendor Consolidation Play Vital Roles as Carriers Push for 100Gbps Transponders

EUGENE, OR - (Marketwire - September 08, 2008) -
The optical transceiver market is undergoing a significant transformation in 2008, with several important trends that were gradually setting pace in 2004-2007, now rapidly reshaping the industry, reports the latest Transceiver Market Forecast from LightCounting, the premier transceiver research company.

Technologically, Ethernet and DWDM will drive the market from 2008 to 2011. Low-cost 10-GigE SPF+ modules will dominate data communications, as evidenced by their stellar first year, with sales already eclipsing all other 10-GigE form factors. Despite the European market slowdown, FTTx will become increasingly significant as GPON and next generation PON gain prominence through 2011. Rapidly increasing bandwidth demands will fuel migration to higher data rates with early adopter global carriers like Verizon Communications committed to transitioning to 40-Gbps and 100-Gbps by 2010.

"We certainly want 100-Gbps as soon as possible and were pushing the industry in that direction," says Glenn Wellbrock, Verizons director of backbone network design.
Verizon also wants 100-Gbps transponders to ensure supply from several sources, and to help drive down costs.

"The optical transceiver market is undergoing a significant transformation in 2008. Several important trends that were gradually setting pace in 2004-2007, are rapidly reshaping this industry now," says Dr. Vladimir Kozlov, founder of LightCounting.

"The leading transceiver players are in acquisition mode to increase their scale, profit margins, and vertical integration opportunities, as well as to enhance their systems know-how," says Dr. Roy Rubenstein, director of research, LightCounting. "They are meeting head-on the dual challenge of emerging, more demanding opportunities like 100-Gbps and the continual cost efficiencies demanded by operators and equipment vendors."