SONET/SDH equipment to revitalise optical market

In-Stat/MDR finds that manufacturers of synchronous optical network (SONET) and synchronous digital hierarchy (SDH) equipment suffered heavily in 2001, due to a sharp cut back on capital expenditures by telecommunications carriers and the demise of many competitive local exchange carriers.

Growth will continue to be minimal in 2002, with the market finally regaining momentum in 2003 and beyond.

According to Richard Cunningham, a senior analyst with In-Stat/MDR, "However, the competitive landscape will grow even more competitive. A wave of merger/acquisition activity will occur in coming months, as some of the established companies purchase new capabilities."

In-Stat/MDR also found that the SONET/SDH market will show slow growth from present levels through 2006 to reach a level of $42 billion in 2006, of which approximately $14 billion will be next-generation SONET/SDH equipment.

Unusrprisingly, Nortel, Lucent and Fujitsu had the greatest market shares and revenues for SONET/SDH equipment in 2001.