Details

Despite the global telecom meltdown, interest in wavelength services continues. With CAPEX budgets dwindling, companies are looking for alternative ways of doing business. In particular, the complexity, high price and long provisioning times associated with private lines and dark fiber leases have EtherLECs and other service providers looking for a less expensive alternative to traditional methods of transport. Enter Wavelength Services.

In Pioneer Consulting's report, Metro and Long-Haul Wavelength Services: An Assessment of the Business Cycle Impacts, Opportunities and Global Demand, Pioneer revisits its earlier study of wavelength services, providing an updated view of the marketplace and forecasts that reflect the current dynamics of the telecom sector. The report updates all forecasts of Pioneer's previous report, "Global Wavelength Services: Optical Signaling Development, Business Case Justification and New Revenue Opportunities" and thus is essential for an up-to-date understanding of the market opportunity offered by wavelength services in the midst of the business cycle.

In this updated report, Pioneer thoroughly examines the business of selling lambdas in the light of current developments and answers important questions surrounding wavelength services such as:

• How will selling lambdas enable the delivery of Storage Area Network (SAN) services and Gig-E services in the area of metro optical networking?
• What are the relevant developments on the GMPLS front?
• How will standards development affect the adoption of wavelength services?
  
• What is the global and regional market opportunity for wavelength services?

This report will answer these questions and more by shedding light on all aspects of the wavelength services market including:

• In-depth discussion of GMPLS and the standards development process Descriptions of next-generation components used to deliver dynamic wavelength services
• Wavelength Level Monitoring Equipment, Tunable Lasers, Next Gen Optical Amplifiers
  
• Comprehensive examination of market drivers of new revenue opportunities for carriers—such as SANs and the delivery of Gig-E services.
  
• Detailed forecasts addressing the adoption of DWDM in metro and long-haul networks as well as the global revenue opportunity for wavelength services

Metro and Long-Haul Wavelength Services: An Assessment of the Business Cycle Impacts, Opportunities and Global Demand is the only report providing a comprehensive, accurate assessment of demand for wavelength services within the context of the business cycle for both the long-haul and metro markets. In addition, this report is essential for all equipment vendors seeking market intelligence concerning adoption of wavelength services, carriers evaluating new technology innovations, investors attempting to gain an in-depth understanding of the wavelength services market and IT professionals wanting to discover how wavelength services may help their company.

Table of Contents

1.0 Executive Summary

1.1 Objective and Scope of Report

1.1.1 Scope of Research

1.2 Methodology

1.2.1 Forecast Methodology

1.2.1.1 Fisher-Pry Model

1.2.1.2 Business Cycle Impacts

1.2.1.3 Forecast Demand Drivers and Suppressants

1.2.1.4 Key Assumptions

1.3 Technological Developments

1.4 Market Overview

1.5 Overview of Forecast Results

1.5.1 Long-Haul Summary

1.5.2 Metro Summary

1.6 Major Conclusions

2.0 Study Overview

2.1 Introduction

2.2 Definition of Wavelength Services

2.2.1 Point-to-Point SONET Connections and Dark Fiber Leases

2.2.2 The Wavelength Services Option

2.3 Scope of Research

2.4 Methodology of Research

3.0 Enabling Technologies & Standards Development

3.1 Evolution of Wavelength Services Technology

3.2 DWDM As The Key Enabler of Lambda Services

3.2.1 DWDM in Long-Haul Networks

3.2.2 DWDM in Metro Networks

3.3 Optical Switching As The Key Enabler of Dynamic Lambda Services

3.3.1 Relating Optical Switching To Wavelength Services

3.3.2 Key Long-Haul Vendor Activity

3.3.3 Key Metro Vendor Activity

3.3.3.1 Accelight

3.3.3.2 Atoga Systems

3.3.3.3 Calient Networks

3.3.3.4 Mahi Networks

3.3.3.5 Photuris

3.4 Tunable Components

3.4.1 Laser Technologies

3.4.1.1 LED Source

3.4.1.2 Semi-Conductor Laser Sources

3.4.1.3 Vertical Cavity Semiconductor Lasers (VCSELs)

3.4.2 Key Vendor Information

3.5 Optical Amplifiers

3.5.1 Erbium Doped Fiber Amplifiers

3.5.2 Next-Generation Optical Amplifiers

3.5.2.1 Genoa Corporation

3.6 Wavelength Level Monitoring

3.6.1 Overview of Wavelength Level Monitoring

3.6.2 Key Vendor Information

3.7 Optical Signaling

3.7.1 GMPLS Technology Overview

3.7.2 GMPLS Standards Development

3.7.1.1 IETF

3.7.1.2 OIF

3.8 Future Applications: An Alternative to Wavelength Services

4.0 Wavelength Services Market Description and Dynamics

4.1 Wavelength Services Market Description

4.1.1 Long-Haul Market Segment

4.1.2 Metro Market Segment

4.2 Wavelength Services Market Applications

4.2.1 Lambdas as an Alternative to: Private Line Leasing (SONET/SDH Circuits)

4.2.2 Lambdas as an Alternative to: New Fiber Builds

4.2.3 Lambdas as an Alternative to: Dark Fiber Leases

4.3 Wavelength Services: Demand Drivers and Suppressants

4.3.1 Demand Drivers

4.3.1.1 Continued Emergence of High-Bandwidth Requirements

4.3.1.2 Continued Migration of Network Traffic from Voice to Data

4.3.1.3 Service Related Issues

4.3.1.4 Current Economic Conditions

4.3.2 Demand Suppressants

4.3.2.1 Reliability and Flexibility of SONET

4.3.2.2 Investment Costs Incurred by Carriers

4.3.2.3 The Chicken or The Egg: Lack of Availability Hurts Demand

4.3.2.4 Current Economic Conditions

4.4 Applications

4.4.1 Storage Area Networks

4.4.2 Gigabit Ethernet Services

4.4.3 Private Line Replacement and Alternative to Dark Fiber Lease

4.5 Key Long-Haul Carrier Activity

4.5.1 AFN Communications

4.5.2 Broadwing

4.5.3 EPIK Communications

4.5.4 Genuity

4.5.5 Global Crossing

4.5.6 Level 3 Communications

4.5.7 Qwest

4.5.8 Teleglobe

4.5.9 Williams Communications

4.6 Key Metro Carrier Activity

4.6.1 OnFiber Communications

4.6.2 SBC

4.6.3 XO Communications

4.7 Carrier’s Capital Expenditures

4.8 Dynamic Wavelength Services

4.8.1 Standardization Impact

4.8.2 Business Case Justification

5.0 Wavelength Services Market Forecasts

5.1 Forecast Methodology

5.1.1 Fisher-Pry Model

5.1.2 Business Cycle Impacts

5.1.2.1 GDP Adjustment Factors

5.1.2.2 Telecom Industry Adjustment Factors

5.1.3 Forecast Demand Drivers and Suppressants

5.1.4 Key Assumptions

5.2 Overview of DWDM Proliferation

5.2.1 Long-Haul DWDM

5.2.2 Metro DWDM

5.3 Overview of Wavelength Services Forecasts

5.3.1 Global Long-Haul Opportunity

5.3.2 Global Metro Opportunity

5.4 Regional Breakdown of Wavelength Services Forecasts

5.4.1 Long-Haul Market by Region

5.4.2 Metro Market by Region

5.5 Major Conclusions

List of Exhibits

Exhibit 1.1: Fisher-Pry Curve Formula

Exhibit 1.2: Generic Fisher-Pry Plot

Exhibit 1.3: Economic Assumptions (Annual Percentage Change in

Telecom Product Growth)

Exhibit 1.4: Key Characteristics of Wavelength Services

Exhibit 1.5: Current Segmentation of Wavelength Services Market

Exhibit 1.6: Global Wavelength Service Revenue Data (USD,

Millions)

Exhibit 1.7: Global Wavelength Services (USD, Millions)

Exhibit 1.8: Global Long-Haul Wavelength Services Revenue Data

(USD, Millions)

Exhibit 1.9: Global Long-Haul Wavelength Services (USD, Millions)

Exhibit 1.10: Long-Haul Wavelength Services Market by Region

Exhibit 1.11: Global Metro Wavelength Services Revenue Data

(USD, Millions)

Exhibit 1.12: Global Metro Wavelength Services (USD, Millions)

Exhibit 1.13: Metro Wavelength Services Market by Region

Exhibit 1.14: Summary of Forecasts—Revenues and CAGR (Revenues

in USD, Millions)

Exhibit 1.15: Wavelength Services Market Trending

Chapter 3

Exhibit 3.1: Technology Evolution to Dynamic Wavelength Services

Exhibit 3.2: Key Characteristics of Wavelength Services

Exhibit 3.3: Long Haul DWDM System Product Specifications

Exhibit 3.4: Dynamically Provisioned Lambdas in an All-Optically

Switched Network

Exhibit 3.5: Long-Haul Intelligent Optical Switch Product

Specifications

Exhibit 3.6: Metro Intelligent Optical Switch Product

Specifications

Exhibit 3.7: Tunable Laser Product Overview

Exhibit 3.8: Wavelength Monitoring Hardware Product

Specifications

Exhibit 3.9: Migration to GMPLS in All-Optical Network

Exhibit 3.10: IETF Papers Dealing with GMPLS

Exhibit 3.11: Centralized Backbone Using GMPLS

Chapter 4

Exhibit 4.1: Current Segmentation of Wavelength Services Market

Exhibit 4.2: Long-Haul Wavelength Service Overview

Exhibit 4.3: Metro Wavelength Service Overview

Exhibit 4.4: Wavelength Services Comparison Table

Exhibit 4.5: Total Estimated Internet Users in the World: 1989–

2010 (000s)

Exhibit 4.6: Anatomy of a Storage Area Network

Exhibit 4.7: Global Crossing’s Wavelength Service Footprint

Exhibit 4.8: WilTel’s Wave Service Network Topology

Exhibit 4.9: Long-Haul Carrier Cap Ex Spending, (USD, Millions)

Chapter 5

Exhibit 5.1: Fisher-Pry Curve Formula

Exhibit 5.2: General Fisher-Pry Plot

Exhibit 5.3: Economic Assumptions (Annual Percentage Change in

Telecom Product Growth)

Exhibit 5.4: Global Combined Long-Haul and Metro WDM Equipment

Sales (USD, Millions)

Exhibit 5.5: Global Combined Long-Haul and Metro WDM Equipment

Sales (USD, Millions)

Exhibit 5.6: Global Long-Haul WDM Equipment Sales (USD, Millions)

Exhibit 5.7: Global Long-Haul WDM Equipment Sales (USD, Millions)

Exhibit 5.8: Global Metro WDM Equipment Sales (USD, Millions)

Exhibit 5.9: Global Metro DWDM Revenue Data (USD, Millions)

Exhibit 5.10: Global Wavelength Service Revenue (USD, Millions)

Exhibit 5.11: Global Wavelength Services (USD, Millions)

Exhibit 5.12: Long-Haul vs. Metro Market Segmentation

Exhibit 5.13: Global Long-Haul Wavelength Services Revenue (USD,

Millions)

Exhibit 5.14: Global Long-Haul Wavelength Services (USD,

Millions)

Exhibit 5.15: Global Metro Wavelength Services Revenue (USD,

Millions)

Exhibit 5.16: Global Metro Wavelength Services Revenue (USD,

Millions)

Exhibit 5.17: Total Wavelength Services Revenue Data by Region

(USD, Millions)

Exhibit 5.18: Total Wavelength Services Opportunity by Region

(USD, Millions)

Exhibit 5.19: Global Wavelength Services Market by Region

Exhibit 5.20: Long-Haul Wavelength Services Revenue Data by

Region (USD, Millions)

Exhibit 5.21: Long-Haul Wavelength Services Opportunity by

Region (USD, Millions)

Exhibit 5.22: Long-Haul Wavelength Services Market by Region

Exhibit 5.23: Metro Wavelength Services Revenue Data by Region

(USD, Millions)

Exhibit 5.24: Metro Wavelength Services Opportunity by Region

(USD, Millions)

Exhibit 5.25: Metro Wavelength Services Market by Region

Exhibit 5.26: Summary of Forecasts Revenues and CAGR (Revenues

in USD, Millions)

Exhibit 5.27: Wavelength Services Market Trending

Executive Summary

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