Abstract
Research Methodology
Considerable research was done using the Internet. Information from various
Web sites was studied and analyzed; evaluation of publicly available marketing
and technical publications was also conducted. Telephone conversations and
interviews were held with industry analysts, technical experts and executives.
In addition to these interviews and primary research, secondary sources were
used to develop a more complete mosaic of the market landscape, including
industry and trade publications, conferences and seminars.
The overriding objective throughout the work has been to provide valid and
relevant information. This has led to a continual review and update of the
information content.
Target Audience
This report provides the analysis of a complicated landscape for high-speed
(40 Gb/s and 100 Gb/s) optical systems. This report is useful for service
providers, vendors, network operators and managers, Enterprise IT staff,
investors and end users seeking to gain a deeper understanding of the gradual
migration various types of the network towards such high speeds and learn
about their opportunities and barriers.
The end users can gain a more detailed understanding of product' s market and
capabilities as well as the economics of using these technologies products to
improve cost efficiency.
This report addresses the emerging of high-rate fiber optics transmission
systems. The systems with 40 Gb/s speed appeared in a market in early 2000,
coinciding with the beginning of the worst in history downturn in the
telecommunications development, research and production. In that hostile
climate, high-rate transmission was met without enthusiasm-extra fiber
capacity was more than enough.
At the present time, the industry is witnesses the rising interest for
high-rate systems and it seems that the advent of 40 Gb/s pipes in carrier
networks has finally arrived, with Verizon' s announcement at OFC/NFOEC in
March of a 40 Gb/s link between New York and Washington. 2007 was the first
year when sizable volume of 40 Gb/s units was shipped by the industry.
There are several factors in re-discovering attractiveness of such transmission; the most important from them are:
- Constantly raising demand for data spectrum
- Increasing fiber plant bandwidth utilization
- Standardization activity.
Among areas the most demanding for high-rate systems are Internet data and
entertainment traffic, such as HD and SHD format signals that require
significant bandwidth (measured in Gb/s) for each wired household.
We are still far from fiber bandwidth exhaustion, but there are regions with a
critical value of 65%-70% of fiber plant bandwidth utilization; carriers are
looking for alternatives to lying new fiber.
Major standardization organizations (IEEE, ITU and other) formed working
groups and formulated tasks for standardization of Ethernet-based and
SONET/SDH-based 40 Gb/s and 100 Gb/s interfaces. The tasks are planned to be
completed in the 2010 time frame.
Based on these factors, the authors of this report analyzed the status of high-rate systems industry with the emphasis on:
- Technology specifics
- PMD characteristics
- Marketing trends
- Standardization activity.
It is authors' opinion that, at the present time, we are witnesses the process
when the high-rate industry is defining itself. The IEEE 802.3ba standard (as
well as other standards for 40 Gb/s and 100 Gb/s systems) is promised to be
ratified in a couple of years; the industry already exists, and it is
preparing to satisfy the demand that, as per our estimate, can coincide with
the mature state of standardization.
The report analyzes technological and marketing features of 40 Gb/s and 100
Gb/s transmission systems. It is envisioned that such systems may safer from
PMD, and the report addresses this issue. The industry expects that PMD
compensators will be a part of high-rate transmission systems; so far,
manufacturers are very cautious to spend money on such compensators
development, and only a few mechanical products are in the market. Report
provides market estimates for 40 Gb/s and 100 Gb/s production (2004-2013).
Altogether, authors believe that the next decade will be the time of
transitioning from 10 Gb/s systems to high-rate systems (40 Gb/s and 100 Gb/s).