COMMERICIAL NEWS
Scottsdale, ARIZ. — As competing technologies gain market share over the next few years, the Synchronous Optical Network (SONET) and Synchronous Digital Hierarchy (SDH) market will continue to thrive, according to Cahners In-Stat Group ( http://www.instat.com ). The high-tech market research firm projects that the market for SONET/SDH systems will zoom from $11.89 billion in 1999 to $31.26 billion in 2004.
“SONET/SDH market growth will be strong through 2002, but beginning in 2003, it will slow as competing solutions such as Dense Wave Division Multiplexing (DWDM) gain ground,” says Doug McEuen, Industry Analyst for the Voice and Data Communications Group. SONET and its European equivalent, SDH were designed before the explosion of data services and were optimized to transmit voice signals. McEuen continues, “SONET/SDH’s data solution is very inefficient, its systems are not easily scalable and are time-consuming to provision.”
However, SONET is an entrenched technology, and changing the infrastructure to other technologies would be a massive, expensive endeavor. The technology, therefore, will remain important to several market segments:
* Interexchange Carriers (IXCs) – Commonly called long distance carriers, IXCs will continue to use SONET as all long-haul transport that must pass through two metro SONET rings, at the beginning and end of the signal transmission.
* Incumbent Local Exchange Carriers (ILECs) – The regional Bell Operating Companies (RBOCs) that dominate local calling services will continue to use SONET in metro markets where it is deeply entrenched.
* Competitive Local Exchange Carriers (CLECs) – Some focus on data service, but like ILECs, CLECs do business in metro markets that will require the use of SONET for many years to come.
* Internet Service Providers (ISPs) – The growth of the Internet and e-commerce will require the use of SONET systems for effective and efficient service guarantees.
The report, SONET/SDH Systems Market Analysis (# WN0007MS), includes a discussion of technology, a SONET market overview, an end-user market overview, vendor profiles, and a five-year market forecast. The report is part of Cahners In-Stat Group’s Networking WAN Service. To purchase this report or for more information please visit http://www.instat.com/catalog/cat-wn.htm#wn0007ms .
Cahners In-Stat Group ( http://www.instat.com/ ) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.
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