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Tepid Growth in Optical Transport Equipment Revenue in the Fourth Quarter of 2008

Fourth Quarter Revenues Lower Than a Year Ago

Redwood City, Calif. – February 24, 2009 – Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, the worldwide optical transport equipment market grew sequentially in the last quarter of 2008, but revenues in the quarter were lower than that of the second quarter. The report indicates that the Optical Transport market grew 12 percent in 2008 and is forecasted to decline 9 percent in 2009.

"In the fourth quarter, we saw flat sequential growth in North America and EMEA and strong sequential growth in sales to Asia Pacific," said Jimmy Yu, Director of Optical Transport research at Dell'Oro Group. "As anticipated, due to a weakening economy, the fourth quarter did not have a large seasonal uplift that is typical at the end of the year. However, there were a couple of bright spots in the fourth quarter. One was increased revenues in Asia Pacific, which accounted for nearly one-third of the worldwide market in the fourth quarter. The other bright spot was the 80 percent sequential growth in 40 Gigabit DWDM wavelengths as more service providers deployed this speed in their networks," Yu added.

The vendors with leading market shares in the fourth quarter of 2008 were Alcatel-Lucent, Huawei, Nortel, and Ericsson, which in aggregate comprise more than half of the entire market. The vendors with sequential market share gains were Huawei, Nortel, ZTE and Ericsson.

About the Report

The Dell'Oro Group Optical Transport Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers' revenue, average selling prices, unit shipments Tributary/Line or Wavelength shipments (by speed up to 40 Gbps). The report tracks DWDM long haul terrestrial, WDM metro, SONET/SDH, and optical switch equipment. To purchase this report, please contact Emily Kendall, call +1.650.622.9400 x223 or email Emily@DellOro.com.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell'Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.DellOro.com.

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