[February 18, 2014]

Infonetics: Optical Gear Spending Flat in 4Q13 as North America Sags and EMEA Surges

Market research firm Infonetics Research released vendor market share and preliminary analysis from its 4^th quarter 2013 (4Q13) and year-end Optical Network Hardware report. (Full report published by February 24.)

ANALYST NOTE

"Optical spending flattened in the fourth quarter of 2013, though it wasn't distributed evenly around the world or by vendor. Weakness was concentrated in North America, but a year-end capex surge in EMEA evened things up," notes Andrew Schmitt, principal analyst for optical at Infonetics Research.

Schmitt adds: "All indications are that an all-clear from Verizon (News - Alert) and AT&T is forthcoming and the Q4 drop was a pause rather than a reversal - and this is in line with our forecasts."

OPTICAL MARKET HIGHLIGHTS

• Worldwide optical network hardware revenue, including WDM and SONET/SDH, was essentially flat in 4Q13, totaling $3.1 billion
• For the full year 2013, the overall optical network hardware market is down 3%
• On a positive note, the WDM segment posted a 6^th consecutive quarter of growth in 4Q13 and ended the full year 2013 up 11% as 100G deployments hit the ground
• Though the traditional 4Q capex flush was in full effect in EMEA, the region recorded a 5^th straight year of spending declines; Infonetics (News - Alert) expects EMEA to revert back to being a third of global spending within 1-2 years
• The Chinese optical market closed 2013 up only 6%, but performance is anticipated to improve in 2014 as 100G rollouts pick up steam
• EMEA optical heavyweights Alcatel-Lucent, Ciena, Coriant, and Huawei all had a big 4Q13

100G WEBINAR

Join analyst Andrew Schmitt and JDSU (News - Alert), MRV, and Transmode on Wednesday, February 19, for 100G in the Metro: When and Where It Will Be Economical, a live event covering new approaches and technologies for cost-effectively deploying 100G in the metro. Register today: http://w.on24.com/r.htm?e=737721&s=1&k=4C4FEAE8EA6BE2BE5618AD600E607F5D

ABOUT THE OPTICAL REPORT

Infonetics' quarterly optical hardware report provides worldwide and regional market size, market share, forecasts through 2018, analysis, and trends for metro and long haul SONET/SDH and WDM equipment, Ethernet optical ports, SONET/SDH/POS ports, and WDM ports. Vendors tracked: Adva, Alcatel-Lucent, Ciena, Cisco, Cyan, ECI, Fujitsu, Huawei, Infinera, NEC, Coriant, Tellabs, Transmode, Tyco Telecom, ZTE, and others. To buy the report, contact Infonetics: http://www.infonetics.com/contact.asp.

RELATED REPORT EXCERPTS

• Infonetics' February 2014 Optical research brief: http://bit.ly/1fabYkf
• Operators answer the big questions about metro 100G and ROADM deployments
• Pricing pressures drive down ROADM component market in first half of 2013
• Carriers dialing back spending on optical equipment; WDM segment outpaces the market

RECENT AND UPCOMING OPTICAL RESEARCH

Download Infonetics' 2014 market research brochure, publication calendar, events brochure, report highlights, tables of contents, and more at http://www.infonetics.com/login.

• Research Note: Infonetics Research's Top 2014 Trends (Jan. 7)
• Research Note: 2014 Optical Market Outlook (Jan. 9)
• OTN & Packet-Optical Hardware Market Share & Forecasts (Mar.)
• Optical Network Hardware Vendor Scorecard (Mar.)
• 10G/40G/100G Optical Transceivers Market Size & Forecasts (Apr.)
• ROADM Components Market Size & Forecasts (May)
• Packet-Optical, MPLS & Control Plane Strategies: Global Service Provider Survey (May)

INFONETICS WEBINARS

Visit https://www.infonetics.com/infonetics-events to register for upcoming webinars, view recent webinars on demand, or learn about sponsoring a webinar.

• 100G in the Metro: When and Where It Will Be Economical (Feb. 19: Attend)
• The Roadmap for the ROADM (News - Alert) Network Expansion (Apr. 8: Learn more)
• All About Edge P-OTS (View on-demand)
• Coherent Optics: Cheaper, Better, Faster (July: Sponsor)
• Building More Efficient Networks with Multi-Layer Packet-Optical (Oct.: Sponsor)

TO BUY REPORTS, CONTACT:

N. America (West), Asia Pacific: Larry Howard, [email protected], +1 408-583-3335

N. America (East, Midwest), L. America: Scott Coyne, [email protected], +1 408-583-3395

EMEA, India, Singapore: George Stojsavljevic, [email protected], +44 755-488-1623

Japan, South Korea, China, Taiwan: http://www.infonetics.com/contact.asp

ABOUT INFONETICS

Infonetics Research (News - Alert) (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete effectively. View Infonetics' About Us slides at http://bit.ly/QUrbrV.

Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20140218006980/en/

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