Alcatel boosts optical market

Alcatel’s revenue in the worldwide optical network hardware market leapt 41% in Q205. The vendor’s strong performance did much to boost the overall market, which grew 10% to US$2.7 billion between the first and second quarters of 2005, according to Infonetics Research.

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By  Simon Duddy Published  August 31, 2005

Alcatel’s revenue in the worldwide optical network hardware market leapt 41% in Q205. The vendor’s strong performance did much to boost the overall market, which grew 10% to US$2.7 billion between the first and second quarters of 2005, according to Infonetics Research. The research firm predicts that total annual revenue will grow to US$11.3 billion in 2008, driven by a rise in bandwidth demand by consumers and businesses worldwide. “The overall optical network hardware market is growing at a healthy pace,” says Michael Howard, principal analyst and co-founder of Infonetics Research. “The long haul market hit its nadir in 2004, and is at last beginning to gather strength again, rising 13% in the second quarter. 2005 will be the first positive growth year for long haul since 2000. Growth in this sector will continue as business conditions improve and carriers reduce opex through investments in a new generation of optical products,” he explains. Alcatel leads the overall optical network hardware market, with 16% of worldwide revenue, followed by Nortel at 12%. Fujitsu and Huawei are battling it out for third place, with 9% each. Furthermore, Infonetics says Fujitsu leads the worldwide SONET market, followed by Nortel and Lucent, while Alcatel leads the worldwide SDH market, followed by Huawei and Nortel.

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