Optical Networks: DWDM and SONET 2003-2008

Table of Contents

Chapter I EXECUTIVE SUMMARY

1.1 Overview

1.2 Development of the All-Optical Network

1.3 The Market

Chapter II MARKET DRIVERS

2.1 Overview

2.2 The Internet

2.2.1 Internet Application Growth

2.2.2 Internet Traffic Growth

2.2.3 Broadband Markets

2.2.4 Internet2 and the Next-Generation Internet

2.2.5 Gaming and other Multimedia Entertainment

2.3 Deregulation and Worldwide Telecom Policy

2.3.1 Results of the Telecommunications Act of 1996 in the US

2.3.2 Price Reductions

2.4 Home Networks and Fiber-to-the-Home

2.5 The Competition in Broadband Access

2.5.1 DSL vs. Cable Modems vs. Wireless

2.5.2 Power Line Networking

2.6 Voice Communications Growth

2.6.1 Wireless

2.6.2 The Convergence of Voice and Data Communications

2.7 Summary

Chapter III OPTICAL TECHNOLOGY

3.1 The Emergence of the Optical Network

3.2 Overview of the All-Optical Network

3.3 Components of the All-Optical Network

3.3.1 Optical Transmitters

3.3.1.1 Tunable Lasers

3.3.1.2 Modulators

3.3.2 Optical Receivers

3.3.3 Optical Fiber

3.3.3.1 Development of Fiber

3.3.3.2 Linear and Nonlinear Transmission Effects

3.3.3.3 New Types of Fiber

3.3.3.4 Future Fiber Design

3.3.4 Amplifiers

3.3.4.1 Erbium-Doped Fiber Amplifiers

3.3.4.2 Semiconductor Laser Amplifiers

3.3.4.3 Raman Amplifiers

3.3.5 Passive Components

3.3.5.1 Connectors

3.3.5.2 Splices

3.3.5.3 Attenuators

3.4 Optical Systems

3.4.1 Multiplexers/Demultiplexers

3.4.2 Optical Switches, Routers, and Cross-Connects

3.5 Equipment Manufacturing Issues

3.5.1 Packaging and Assembly

3.5.2 Hardware Cost Concerns

3.6 Multiplexing Trends

3.6.1 Advantages of Time Division Multiplexing

3.6.2 Advantages of Wavelength Division Multiplexing

3.7 Present and Future DWDM Systems

3.7.1 Long-Haul Systems

3.7.2 Metropolitan Systems

3.8 Management of All-Optical Networks

3.8.1 End-to-End Wavelength Management

3.8.2 Optical Network Monitoring

3.8.3 Restoration

3.9 Developing Technology

3.9.1 Soliton-Based Systems

3.9.2 Advances in Components

3.10 Standards Efforts and Organizations

3.10.1 Optical Domain Service Interconnection Coalition

3.10.2 Optical Internetworking Forum

3.10.3 Internet Engineering Task Force

3.11 IP, ATM, DWDM, and the Future of SONET

Chapter IV OPTICAL SERVICE PROVIDER SOLUTIONS

4.1 Long-Haul and Metropolitan Infrastructure Buildouts

4.1.1 Overview

4.1.2 List of Buildouts

4.2 Submarine Fiber Optic Cable Deployment

4.2.1 Submarine Fiber vs. Satellites

4.2.2 Deployment Process

4.2.3 Underseas Cable System Ownership

4.2.4 Impact of WDM/DWDM on Submarine Fiber Cable

4.2.5 Submarine Fiber Cable Deployments

4.3 The Last Mile: PONs and Fiber-to-the-X

4.3.1 Fiber to the Home: PONS in the Local Loop

4.3.1.1 The BellSouth Project

4.3.1.2 The Palo Alto Project

4.3.1.3 Other Ventures

4.3.2 Fiber-to-the-Business and Multiple Dwelling Units

4.4 Hybrid Fiber Coax Systems

4.4.1 Hybrid Fiber Coax Technology

4.4.2 HFC Telephony

4.5 Utility Company Involvement

Chapter V THE OPTICAL VENDOR LANDSCAPE

5.1 Semiconductor, Integrated, and Planar Optics Vendors

5.1.1 Fabless Semiconductors

5.1.2 Integrated Optics Vendors

5.1.3 InP-Based Development

5.2 Transmitter, Receiver, and Modulator Vendors

5.2.1 VCSELs

5.2.2 Tunable Lasers

5.2.3 Receivers

5.3 All-Fiber Component Vendors

5.4 Multiplexer/Demultiplexer Vendors

5.5 Passive Component Vendors

5.6 Module and Subsystem Vendors

5.6.1 Integrated Components

5.6.2 Switch, Router, and Cross-Connect Vendors

5.6.3 MEMS vs. Liquid Crystals vs. Lithium Niobate Switches

5.6.3.1 MEMS in Fiber Optic Systems

5.6.3.2 Liquid Crystal Switches

5.6.4 Optoelectronic Devices

5.7 Systems, Platform, and Infrastructure Vendors

5.7.1 Metro System Vendors

5.7.2 Infrastructure Providers

5.7.2.1 Niche All-Optical Infrastructure Providers

Chapter VI MARKET FORECASTS

6.1 Summary

6.2 Fiber Deployment

6.2.1 Worldwide Fiber Deployment by Network Type

6.3 Growth in Worldwide Bandwidth Demand

6.4 The Future of SONET/SDH

6.5 The DWDM Market

6.5.1 The Metro DWDM Market

6.6 Photonic Subsystem Market Growth

6.6.1 Transmitters

6.6.2 Receivers

6.6.3 Other Active Components

6.6.4 Passive Components

6.6.5 Amplifiers

Appendix GLOSSARY

Table of Figures

• I-1 Worldwide PCs Online, 2000-2006
• I-2 Worldwide SONET/SDH and DWDM System Revenue, 2000-2006 ($Billions)
• II-1 Worldwide Internet Traffic Growth, 2000-2005 (Gigabits per Second)
• II-2 Host and Domain Name Growth, 2000-2006 (Millions)
• II-3 Worldwide E-commerce Revenue, Business vs. Consumer, 2000-2006 ($Billions)
• III-1 SONET Ring Configuration
• III-2 Switched Optical/Electrical Networks vs. All-Optical IP Meshed Networks
• III-3 Optical Fiber Structure
• III-4 Optical Transmitter, Amplifier, and Receiver Basic Configuration
• III-5 Functional Elements of Optical Systems
• III-6 ITU-T Wavelength Spacing Grid for DWDM Systems (Nanometers)
• III-7 DWDM Bands Around 1550 Nanometers
• III-8 Chromatic Dispersion
• III-9 Stimulated Raman Scattering
• III-10 Four-Wave Mixing
• III-11 Three-Stage EDFA Structure
• III-12 Demultiplexing Using Cascaded Thin-Film Filters
• III-13 Example of 80-Channel Multiple Step Demultiplexing Using Interleavers
• III-14 Optical Add-Drop Multiplexer
• III-15 Optical Cross-Connect
• III-16 TDM Expansion vs. WDM Expansion
• III-17 Long-Haul DWDM System
• III-18 Two Ways to Expand DWDM Capacity
• III-19 Six Different Layered Approaches Used in Optical Networks Today
• III-20 Comparative Restoration Timing Performance (DCS, OXC, SONET, and Optical Rings)
• IV-1 Submarine Cable Layout
• IV-2 Types of PONs
• IV-3 Basic APON Architecture for FTTH, FTTB, FTTC, and FTTCab Structure
• IV-4 HFC Architecture
• VI-1 Fiber Deployment by Region, 2000 vs. 2006
• VI-2 Worldwide Fiber Deployment by Network Type, 2000 vs. 2006
• VI-3 Average Cable Cross-Sections, 2000-2006 (Fibers/Cable)
• VI-4 Decline in Bandwidth Cost, Short- vs. Long-Haul, 2000-2006 ($ per Gbit/s per Kilometer)
• VI-5 Worldwide SONET/SDH Equipment Unit Sales, 2000-2006 (Thousands)
• VI-6 SONET/SDH Terminal Market, 2000-2006 ($Billions)
• VI-7 SONET/SDH Terminal Price Forecast, 2000-2006 ($Thousands)
• VI-8 DWDM Mux/Demux Prices, 2000-2006 ($Thousands Per Port)
• VI-9 Worldwide DWDM Sales, 2000-2006 ($Billions)
• VI-10 Transmitter Subsystem Market Growth, 2000-2006 ($Billions)
• VI-11 Tunable Laser Penetration, 2000-2006 (% of Total Lasers)
• VI-12 Receiver Subsystem Market Growth, 2000-2006 ($Billions)
• VI-13 Other Active Component Subsystem Market Growth, 2000-2006 ($Billions)
• VI-14 Passive Component Subsystem Market Growth, 2000-2006 ($Billions)
• VI-15 Amplifier Subsystem Market Growth, 2000-2006 ($Billions)

Table of Tables

• I-1 Optical Networking's Advantages Over Legacy SONET/SDH
• I-2 Trial DWDM Systems With the Largest Capacity, 2001
• II-1 Download Time Comparison by Type of Internet Access
• II-2 Online PCs, North America and Rest of World, Home vs. SME, 2000-2006 (Millions)
• III-1 ITU-T Frequency and Wavelength Grid for DWDM Systems
• III-2 Typical Features of First Generation Metropolitan vs. Long-Haul DWDM Networks
• IV-1 List of Major Landline Fiber Deployments
• IV-2 Major In-Service and Planned Atlantic Submarine Cables, 1995-2002
• IV-3 Major In-Service and Planned Pacific Submarine Cables, 1995-2002
• IV-4 PON Technical Features
• VI-1 Fiber Deployment by Region, 2000-2006 (Gigameters)
• VI-2 Worldwide Fiber Deployment by Network Type, 2000-2006 (Gigameters)
• VI-3 PCs Online, North America vs. Rest of World, Home vs. SME, 2000-2006 (Millions)
• VI-4 Bandwidth Demand, N America vs. Rest of World, Home vs. SME, 2000-2006 (Gbit/s)
• VI-5 Worldwide SONET/SDH Equip Unit Sales, Metro vs. Long-Haul, 2000-2006 (Thousands)
• VI-6 SONET/SDH Terminal Market by OC Type, 2000-2006 ($Billions)
• VI-7 SONET/SDH Terminal Price Forecast by OC Type, 2000-2006 ($Thousands)
• VI-8 DWDM System Prices, Metro vs. Long-Haul, 2000-2006 ($Thousands Per Port)
• VI-9 Worldwide DWDM Sales, Metro vs. Long-Haul Systems, 2000-2006 ($Billions)
• VI-10 Worldwide Photonics Market by Subsystem Type, 2000-2006 ($Billions)