European Operators Ratchet Up Purchases of Optical Transport Equipment

Alcatel-Lucent and Fujitsu Grow Faster Than Market

Redwood City, Calif. – November 20, 2007 – A newly published report by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, reveals the level of spending on optical transport equipment during 2007 is on track to rise $2 billion above the level last year. The bulk of the new spend is coming from telecom service providers in Europe, Middle East, and Africa (EMEA). Service providers in EMEA accounted for half of the Optical Transport market’s growth during the third quarter and first nine months of 2007, compared with the same periods in 2006.

The most notable gains during the third quarter came from Alcatel-Lucent’s SONET/SDH equipment sales into EMEA, followed by Fujitsu’s SONET/SDH equipment sales into EMEA and North America.

“SONET/SDH equipment continues to comprise the majority of optical market sales,” said Jason Suey, Analyst for Optical Transport research at Dell’Oro Group. “However, there are different regional trends based on competitive dynamics and overall strategy. Sales of SONET/SDH equipment are rising with European operators as they add more capacity to their existing networks. In contrast, sales of SONET/SDH equipment are declining in North America as operators shift their spend to building more-expensive higher-bandwidth WDM networks,” Suey added.

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 OC-3/STM-1, OC-12/STM-4, OC-48/STM-16, OC-192/STM-64, OC-768/STM-256, and Other). The report tracks DWDM long haul terrestrial, WDM metro, SONET/SDH, and optical switch equipment. To purchase this report, please contact Margaret Miles, call +1.650.622.9400 x225 or email Margaret@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.