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40 Gbps Wavelengths to Contribute $1.2 Billion of DWDM Long Haul Revenue by 2013

40 Gbps Wavelength Shipments to Grow Above 50 Percent in Each of Next Five Years

Redwood City, Calif. – January 29, 2009 – In a newly released Optical 5-year forecast report by Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, total worldwide Optical Transport equipment revenue is forecasted to decline 9 percent in 2009 and resume growth in 2010, reaching $14.5 billion in 2013. Shipments of 40 Gbps wavelengths are forecast to grow at least 50 percent in each of the next five years and contribute nearly one-third of the capacity shipped in DWDM Long Haul systems by 2013.

"The economy of most major countries is in a recession, and the consensus belief is that this recession may last through 2009," said Jimmy Yu, Director of Optical Transport research at Dell'Oro Group. "While the near term outlook is for the total optical market to contract 9 percent due to factors such as the economic downturn, there continues to be an opportunity for technologies that will help service providers reduce their capital expense while still expanding their network capacity. We think that 40 Gigabit is one of those technologies as the price per bit of a 40 Gbps wavelength starts to be lower than that of a 10 Gigabit wavelength in a DWDM Long Haul system," added Mr.Yu.

The report also indicates that shipments of 100 Gbps wavelengths are expected in late 2011.

About the Report

The Dell'Oro Group 5-Year Forecast Report offers a complete overview of the Optical Transport industry with tables covering manufacturers' revenue, average selling prices, unit shipments Tributary/Line or Wavelength shipments (by speed up to 100 Gbps). The report tracks DWDM long haul terrestrial, WDM metro, SONET/SDH, and optical switch equipment. To purchase this report, please contact Emily Kendall, call +1.650.622.9400 x223 or email Emily@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 enable 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.

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