Global Optical Transport Network (OTN) Equipment Industry

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Jul 11, 2013, 06:46 ET

NEW YORK, July 11, 2013 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Global Optical Transport Network (OTN) Equipment Industry

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This report analyzes the worldwide markets for Optical Transport Network (OTN) Equipment in US$ Million by the following Product Segments: OTN Transport Equipment, and OTN Switching Equipment. The report provides separate comprehensive analytics for the US, Canada, Europe, Asia-Pacific, Middle East, and Latin America. Annual estimates and forecasts are provided for the period 2009 through 2018. The report profiles 47 companies including many key and niche players such as ADTRAN Inc., ADVA Optical Networking SE, Alcatel-Lucent, Aliathon Technology Ltd., Ciena Corporation, Cisco Systems, Inc., ECI Telecom Ltd., Ericsson, Fujitsu Limited, Huawei Technologies, Infinera Corporation, JDS Uniphase Corporation, NEC Corporation, Tellabs, Inc., and ZTE Corporation. Market data and analytics are derived from primary and secondary research. Company profiles are primarily based on public domain information including company URLs.

I. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITIONSStudy Reliability and Reporting Limitations I-1Disclaimers I-2Data Interpretation & Reporting Level I-2Quantitative Techniques & Analytics I-2Product Definitions and Scope of Study I-3OTN Transport Equipment I-3OTN Switching Equipment I-3II. EXECUTIVE SUMMARY

1. INDUSTRY OVERVIEW II-1

Telecom Sector Shifts towards High Capacity & Faster Optical

Networks II-1

Explosive Data Traffic Drives Carriers towards IP-based

Network Architectures II-2

Optical Networks Market: Steady Growth II-2

Favorable Growth Prospects for Optical Transport Networks (

OTN) Market II-3

Current and Future Analysis II-3

OTN Transport: The Larger Category II-4

OTN Switching: The Faster Growing Segment II-4

World Looks towards Asia-Pacific II-4

OTN Market Slows Down under Uncertain Global Economy II-5

Technological Advancements Spur Market Growth II-5

Competitive Landscape II-6

Table 1: Leading Vendors in the Global Optical Network

Equipment Market (2012): Percentage Share Breakdown of

Revenues for Huawei, Alcatel-Lucent, Ciena, ZTE, Fujitsu,

and Others (includes corresponding Graph/Chart) II-6

2. MARKET DYNAMICS II-7Need for Higher Data Speeds: A Key Growth Driver II-7Table 2: Global Consumer Internet Traffic (2009 - 2014)(includes corresponding Graph/Chart) II-7

Table 3: Worldwide Internet Usage (2012): Percentage Share

Breakdown of Users by Region (includes corresponding

Graph/Chart) II-8

Table 4: Worldwide Internet Penetration by Geographic Region(2012) (includes corresponding Graph/Chart) II-8

Table 5: Global Penetration of Broadband Services by

Geographic Region (2012): Fixed and Mobile Broadband

Subscriptions as % of Regional Population (includes

corresponding Graph/Chart) II-9

Explosive Growth of Global IP Traffic II-9

Rising Significance of Mobile Devices in Internet Traffic II-9

Shift towards 40G/100G Networks: A Major Growth Factor II-10

100G Network: The Network in Demand II-10

OTNs in 40G & 100G High-Speed Networks II-11

OTN and 100G: A Lasting Combination II-11

OTN Technology: An Essential Aspect of 100G Networks II-11

OTN Essential for Achieving Fine-Grained High Utilization

of 100G pipes II-12

OTN Offers Multi-Layer Protection to 100G Networks II-12

OTN Ensures Reliable Transmission of Multiple Services II-12

Power of Electronics in 100G Technology II-12

Future of OTN Transmission: 400G and Beyond II-12

Integrating Transport & Switching Functions: Ideal Solution

for Equipment Makers II-13

OTN for Submarine Cable Industry II-13

GeoMesh Network: Eliminating Distinctions between

Terrestrial & Submarine Networks II-14

OTN Benefits Carrier Networks II-15

OTN: The Next-Gen Core? II-15

OTN Switching Gains Prominence in Metro Networks II-15

P-OTS: Opportunities for OTN Market II-16

Solutions Enabled by P-OTS II-17

Mobile Backhaul Solutions: II-17

Triple Play Solutions: II-17

Business Services Solution: II-17

Industry and Public Sector: II-18

P-OTS: Ideal Transport Solution for Carrier Ethernet Networks II-18

P-OTS and Metro Networks II-18

Model-Driven Architecture II-19

Multicarrier Technologies Demand Flexible & Open OTNs II-19

Software-Defined OTN II-20

3. REGULATORY LANDSCAPE II-21The Need for OTN Standards II-21ITU-T Standards for OTN II-21ITU-T Standards for OTN and their Definitions II-22The Addition of OAM Standards in G.709 II-22ITU-T Line Rates II-22

4. PRODUCT OVERVIEW II-24

Optical Networking Equipment II-24

Optical Transport Network (OTN) II-24

OTN Equipment II-24

OTN and the Need for FPGAs II-24

A Brief Insight into the Evolution of OTN II-25

OTN and SONET/SDH: A Comparative Analysis II-25

OTN Network Vs SONET/SDH Network II-26

Advantages of OTN Technology II-26

OTN Functions: Overview of OTN Transport & OTN Switching II-27

Features of OTN Switching, OTN Transport and OTN Muxponders II-28

OTN Transport II-28

OTN Muxponders II-29

OTN Switching II-29

Major Benefits of OTN Switching II-30

5. PRODUCT INNOVATIONS/INTRODUCTIONS II-31EXFO Launches New Field Test Product II-31NTT Electronics Unveils Single-Chip Multi-Functional 100G OTNFramers II-31Menara Networks Unveils Transponder Replacement for 100G DWDMTransmission II-31PMC Introduces PM5440 DIGI 120G II-32Fujitsu Introduces the FLASHWAVE CDS Micro Packet ONP II-32AppliedMicro Launches TPO215 processor II-33Broadcom Unveils BCM845xx Series of OTN Framer PHYs II-34ADTRAN Extends ONE Solution II-34Xtera Introduces Switching Capabilities in Nu-Wave Optima™ II-34Huawei Launches OSN 1800 V II-35Reliance Globalcom to Employ Ciena's Technology to UpgradeTransatlantic Cable System II-35Huawei Introduces Novel All-Optical Switching Network II-35Huawei Introduces New Intelligent Optical Splitter II-35Huawei Introduces New 100G Optical Module II-36Ericsson Launches SPO 1485 Multiservice DWDM II-36Broadcom Unveils BCM845xx Series of OTN Transceivers II-36Broadcom Unveils BCM84128 100G PHY CMOS Transmitter II-37Cyan Launches DTM-100G Single-Slot Transponder II-37EXFO Extends FTB/ IQS-85100G Packet Blazer 100G/40G EthernetTest Modules Capability II-37Lightower Introduces Commercial 40G and 100G Services II-38Ericsson Extends SPO Line of POTP II-38Altera Announces Single-chip, Multi-rate OTN Muxponder Solution II-38PMC Unveils Second-Generation HyPHY OTN Processor II-39EXFO Launches FG-750 Node intelligent Optical Link Mapper II-39Altera Introduces Single-Chip Muxponder Solution II-40Aliathon Introduces 100G OTN Transponder/ Muxponder Demo Design II-40Broadcom Introduces BCM84793 and BCM84790 Gearbox PHYs II-41Huawei Introduces New Intelligent Optical Network Terminals II-41EXFO Launches New IQS-9100B MEMS Optical Switch Test Module II-42Huawei Introduces New All-optical Switch Prototype II-42ZTE Launches New Prototype of DWDM Multi- application NetworkDevice II-42Huawei Introduces Prototype of Programmable 2T WDM II-43Huawei Introduces Over-10T MS-OTN Prototype II-43Primus Australia Unveils Upgraded Metro Fiber II-43JDSU Launches First OTN Multichannel Test Solution II-44Ixia Introduces XOTN Optical Transport Network Test Solution II-44du Rolls Out OTN Infrastructure in the Middle East II-45Infinera Launches DTN-X Multi-Terabit Packet-OTN Platform II-45ZTE Rolls Out ZXMP M721 OTN Device for Metro Edge Layer II-46Huawei Launches High Capacity Multi-Service OTN Prototype II-46Sorrento Networks Rolls Out OTN Card II-47Cortina Systems Launches CS604x Second- Generation 40G/10G OTNProcessor II-47EXFO Introduces Ethernet-over-OTN Testing Capability II-47Vitesse Semiconductor Launches Multi-Port 10GE OTN Mapper Family II-48Broadcom Launches 40G PHY Chipset for OTN II-48BTI Systems Unveils Dynamic Optical Layer II-49Cortina Systems Unveils CS605x Series of ASSP TransportProcessors II-49Digital Lightwave Launches CSA 4100 Module II-50JDSU Launches Multi-Port Test Module II-50PMC-Sierra Unveils Swizzle Forward Error Correction Technology II-50Applied Micro Circuits Introduces Standard 100G MultiplexingTransponder Solution II-51Infinera Introduces OTN Solutions with New Software andHardware Enhancements II-51JDSU Introduces Advanced OTU3 and OTU4 Test Features to 100GETest Suite II-52Optelian Launches Universal OMS-719 Optical Networking Platform II-52Alcatel-Lucent Introduces Core 1870 Transport Tera Switch II-53Huawei Introduces New Transport OTN System II-53JDSU Introduces Additional Optical Transport NetworkCapabilities II-53Digital Lightwave Introduces New Test Solution for NIC Platform II-53BTI Systems Unveils Metro Services Platform II-54Broadcom Launches BCM8157 and BCM8155 Multi-Rate Transceivers II-54Applied Micro Circuits Introduces PQX 10G/40G OTN Framer II-54Applied Micro Circuits Launches 100G Transponders II-55

6. RECENT INDUSTRY ACTIVITY II-56

Telecom NZ Enters into Contract with Alcatel-Lucent for 100

Gigabits OTN II-56

Pacnet to Build 100 Gigabit OTN II-56

CenturyLink Partners with Ciena for Technology Upgrade II-56

Network Hardware Resale Enters into Partnership with Menara

Networks II-57

Alcatel-Lucent Agrees to Expand China Telecom's OTN II-57

Tellabs and NEC Ink Deal to Resell Tellabs® 7100 P-OTS II-58

Beltelecom Awards 100G Optical Network Contract to Huawei II-58

Telstra Deploys Infinera's 40G DTN Solutions II-58

Ciena® to Deploy Packet Networking and Packet Optical

Transport Technology across Fiber Network of Sovernet Fiber II-59

euNetworks Acquires TeraGate AG II-59

Huawei Secures Contract from TDC for Building National and

Pan-European OTN II-60

Ciena Integrates OTN with ActivFlex series II-60

Primus Australia Upgrades Fiber Network II-60

Xilinx Takes Over Omiino II-60

Altera Takes Over Avalon Microelectronics II-61

Applied Micro Circuits Inks Agreement to Take Over TPACK II-61

Tejas Networks Chooses New ClockCenter Universal Clock

Translator Solutions from Zarlink Semiconductor II-62

7. FOCUS ON SELECT KEY PLAYERS II-63ADTRAN Inc. (US) II-63ADVA Optical Networking SE (Germany) II-63Alcatel-Lucent (France) II-64Aliathon Technology Ltd. (UK) II-64Ciena Corporation (US) II-65Cisco Systems, Inc. (US) II-65ECI Telecom Ltd. (Israel) II-66Ericsson (Sweden) II-66Fujitsu Limited (Japan) II-66Huawei Technologies (China) II-67Infinera Corporation (US) II-67JDS Uniphase Corporation (US) II-68NEC Corporation (Japan) II-68Tellabs, Inc. (US) II-68ZTE Corporation (China) II-69

8. GLOBAL MARKET PERSPECTIVE II-70

Table 6: World Recent Past, Current & Future Analysis for

Optical Transport Network (OTN) Equipment by Geographic Region -

US, Canada, Japan, Europe, Asia-Pacific, Middle East, and

Latin America Markets Independently Analyzed with Annual Sales

Figures in US$ Million for Years 2009 through 2018 (includes

corresponding Graph/Chart) II-70

Table 7: World 10-Year Perspective for Optical TransportNetwork (OTN) Equipment by Geographic Region - PercentageBreakdown of Value Sales for US, Canada, Japan, Europe,Asia-Pacific, Middle East, and Latin America Markets forYears 2009, 2012 & 2018 (includes corresponding Graph/Chart) II-71

Table 8: World Recent Past, Current & Future Analysis for

OTN-Transport Equipment by Geographic Region - US, Canada,

Japan, Europe, Asia-Pacific, Middle East, and Latin America

Markets Independently Analyzed with Annual Sales Figures in

US$ Million for Years 2009 through 2018 (includes

corresponding Graph/Chart) II-72

Table 9: World 10-Year Perspective for OTN-Transport Equipmentby Geographic Region - Percentage Breakdown of Value Salesfor US, Canada, Japan, Europe, Asia-Pacific, Middle East, andLatin America Markets for Years 2009, 2012 & 2018 (includescorresponding Graph/Chart) II-73

Table 10: World Recent Past, Current & Future Analysis for

OTN-Switching Equipment by Geographic Region - US, Canada,

Japan, Europe, Asia-Pacific, Middle East, and Latin America

Markets Independently Analyzed with Annual Sales Figures in

US$ Million for Years 2009 through 2018 (includes

corresponding Graph/Chart) II-74

Table 11: World 10-Year Perspective for OTN-SwitchingEquipment by Geographic Region - Percentage Breakdown ofValue Sales for US, Canada, Japan, Europe, Asia-Pacific,Middle East, and Latin America Markets for Years 2009, 2012 &2018 (includes corresponding Graph/Chart) II-75III. MARKET

1. THE UNITED STATES III-1

A.Market Analysis III-1

Current and Future Analysis III-1

Product Launches III-1

Strategic Corporate Developments III-15

Key Players III-18

B.Market Analytics III-21

Table 12: US Recent Past, Current & Future Analysis for

Optical Transport Network (OTN) Equipment by Product Segment

- Transport and Switching Markets Independently Analyzed

with Annual Sales Figures in US$ Million for Years 2009

through 2018 (includes corresponding Graph/Chart) III-21

Table 13: US 10-Year Perspective for Optical TransportNetwork (OTN) Equipment by Product Segment - PercentageBreakdown of Value Sales for Transport and SwitchingMarkets for Years 2009, 2012 and 2018 (includescorresponding Graph/Chart) III-22

2. CANADA III-23

A.Market Analysis III-23

Current and Future Analysis III-23

Product Launches III-23

B.Market Analytics III-27

Table 14: Canadian Recent Past, Current & Future Analysis

for Optical Transport Network (OTN) Equipment by Product

Segment - Transport and Switching Markets Independently

Analyzed with Annual Sales Figures in US$ Million for

Years 2009 through 2018 (includes corresponding

Graph/Chart) III-27

Table 15: Canadian 10-Year Perspective for OpticalTransport Network (OTN) Equipment by Product Segment -Percentage Breakdown of Value Sales for Transport andSwitching Markets for Years 2009, 2012 and 2018 (includescorresponding Graph/Chart) III-28

3. JAPAN III-29

A.Market Analysis III-29

Current and Future Analysis III-29

Strategic Corporate Developments III-29

Key Players III-30

B.Market Analytics III-31

Table 16: Japanese Recent Past, Current & Future Analysis

for Optical Transport Network (OTN) Equipment by Product

Segment - Transport and Switching Markets Independently

Analyzed with Annual Sales Figures in US$ Million for Years

2009 through 2018 (includes corresponding Graph/Chart) III-31

Table 17: Japanese 10-Year Perspective for Optical TransportNetwork (OTN) Equipment by Product Segment - PercentageBreakdown of Value Sales for Transport and SwitchingMarkets for Years 2009, 2012 and 2018 (includescorresponding Graph/Chart) III-32

4. EUROPE III-33

Market Analysis III-33

Table 18: European Recent Past, Current & Future Analysis

for Optical Transport Network (OTN) Equipment by Geographic

Region - France, Germany, Italy, UK, Spain, Russia and Rest

of Europe Markets Independently Analyzed with Annual Sales

Figures in US$ Million for Years 2009 through 2018

(includes corresponding Graph/Chart) III-34

Table 19: European 10-Year Perspective for Optical TransportNetwork (OTN) Equipment by Geographic Country - PercentageBreakdown of Value Sales for France, Germany, Italy, UK,Spain, Russia and Rest of Europe Markets for Years 2009,2012 and 2018 (includes corresponding Graph/Chart) III-35

Table 20: European Recent Past, Current & Future Analysis

for Optical Transport Network (OTN) Equipment by Product

Segment - Transport and Switching Markets Independently

Analyzed with Annual Sales Figures in US$ Million for

Years 2009 through 2018 (includes corresponding

Graph/Chart) III-36

Table 21: European 10-Year Perspective for OpticalTransport Network (OTN) Equipment by Product Segment -Percentage Breakdown of Value Sales for Transport andSwitching Markets for Years 2009, 2012 and 2018 (includescorresponding Graph/Chart) III-37

4a. FRANCE III-38

A.Market Analysis III-38

Current and Future Analysis III-38

Product Launch III-38

Alcatel-Lucent - A Key Player III-38

B.Market Analytics III-39

Table 22: French Recent Past, Current & Future Analysis for

Optical Transport Network (OTN) Equipment by Product Segment -

Transport and Switching Markets Independently Analyzed

with Annual Sales Figures in US$ Million for Years 2009

through 2018 (includes corresponding Graph/Chart) III-39

Table 23: French 10-Year Perspective for Optical TransportNetwork (OTN) Equipment by Product Segment - PercentageBreakdown of Value Sales for Transport and Switching Marketsfor Years 2009, 2012 and 2018 (includes correspondingGraph/Chart) III-40

4b. GERMANY III-41

A.Market Analysis III-41

Current & Future Analysis III-41

Strategic Corporate Developments III-41

ADVA Optical Networking SE - A Key Player III-42

B.Market Analytics III-43

Table 24: German Recent Past, Current & Future Analysis for

Optical Transport Network (OTN) Equipment by Product Segment -

Transport and Switching Markets Independently Analyzed

with Annual Sales Figures in US$ Million for Years 2009

through 2018 (includes corresponding Graph/Chart) III-43

Table 25: German 10-Year Perspective for Optical TransportNetwork (OTN) Equipment by Product Segment - PercentageBreakdown of Value Sales for Transport and SwitchingMarkets for Years 2009, 2012 and 2018 (includescorresponding Graph/Chart) III-44

4c. ITALY III-45

Market Analysis III-45

Table 26: Italian Recent Past, Current & Future Analysis

for Optical Transport Network (OTN) Equipment by Product

Segment - Transport and Switching Markets Independently

Analyzed with Annual Sales Figures in US$ Million for Years

2009 through 2018 (includes corresponding Graph/Chart) III-45

Table 27: Italian 10-Year Perspective for Optical TransportNetwork (OTN) Equipment by Product Segment - PercentageBreakdown of Value Sales for Transport and Switching Marketsfor Years 2009, 2012 and 2018 (includes correspondingGraph/Chart) III-46

4d. THE UNITED KINGDOM III-47

A.Market Analysis III-47

Current & Future Analysis III-47

Product Launch III-47

Aliathon Technology Ltd. - A Key Player III-47

B.Market Analytics III-48

Table 28: UK Recent Past, Current & Future Analysis for

Optical Transport Network (OTN) Equipment by Product Segment -

Transport and Switching Markets Independently Analyzed

with Annual Sales Figures in US$ Million for Years 2009

through 2018 (includes corresponding Graph/Chart) III-48

Table 29: UK 10-Year Perspective for Optical TransportNetwork (OTN) Equipment in the UK by Product Segment -Percentage Breakdown of Value Sales for Transport andSwitching Markets for Years 2009, 2012 and 2018 (includescorresponding Graph/Chart) III-49

4e. SPAIN III-50

Market Analysis III-50

Table 30: Spanish Recent Past, Current & Future Analysis for

Optical Transport Network (OTN) Equipment by Product Segment -

Transport and Switching Markets Independently Analyzed

with Annual Sales Figures in US$ Million for Years 2009

through 2018 (includes corresponding Graph/Chart) III-50

Table 31: Spanish 10-Year Perspective for Optical TransportNetwork (OTN) Equipment by Product Segment - PercentageBreakdown of Value Sales for Transport and SwitchingMarkets for Years 2009, 2012 and 2018 (includescorresponding Graph/Chart) III-51

4f. RUSSIA III-52

Market Analysis III-52

Table 32: Russian Recent Past, Current & Future Analysis for

Optical Transport Network (OTN) Equipment by Product Segment -

Transport and Switching Markets Independently Analyzed

with Annual Sales Figures in US$ Million for Years 2009

through 2018 (includes corresponding Graph/Chart) III-52

Table 33: Russian 10-Year Perspective for Optical TransportNetwork (OTN) Equipment by Product Segment - PercentageBreakdown of Value Sales for Transport and SwitchingMarkets for Years 2009, 2012 and 2018 (includescorresponding Graph/Chart) III-53

4g. REST OF EUROPE III-54

A.Market Analysis III-54

Current & Future Analysis III-54

Product Launches III-54

Strategic Corporate Developments III-55

Ericsson (Sweden) - A Key Player III-56

B.Market Analytics III-57

Table 34: Rest of Europe Recent Past, Current & Future

Analysis for Optical Transport Network (OTN) Equipment by

Product Segment - Transport and Switching Markets

Independently Analyzed with Annual Sales Figures in US$

Million for Years 2009 through 2018 (includes

corresponding Graph/Chart) III-57

Table 35: Rest of Europe 10-Year Perspective for OpticalTransport Network (OTN) Equipment by Product Segment -Percentage Breakdown of Value Sales for Transport andSwitching Markets for Years 2009, 2012 and 2018 (includescorresponding Graph/Chart) III-58

5. ASIA-PACIFIC III-59

A.Market Analysis III-59

Current and Future Analysis III-59

China: A Glance at the Optical Network Equipment Market III-59

India: Gearing up for Optical Network Boom III-59

Product Launches III-60

Strategic Corporate Developments III-64

Key Players III-66

B.Market Analytics III-68

Table 36: Asia-Pacific Recent Past, Current & Future

Analysis for Optical Transport Network (OTN) Equipment by

Product Segment - Transport and Switching Markets

Independently Analyzed with Annual Sales Figures in US$

Million for Years 2009 through 2018 (includes corresponding

Graph/Chart) III-68

Table 37: Asia-Pacific 10-Year Perspective for OpticalTransport Network (OTN) Equipment by Product Segments -Transport and Switching Markets for Years 2009, 2012 and2018 (includes corresponding Graph/Chart) III-69

6. MIDDLE EAST III-70

A.Market Analysis III-70

Current & Future Analysis III-70

Product Launch III-70

ECI Telecom Ltd. (Israel) - A Key Player III-70

B.Market Analytics III-71

Table 38: Middle East Recent Past, Current & Future

Analysis for Optical Transport Network (OTN) Equipment by

Product Segment - Transport and Switching Markets

Independently Analyzed with Annual Sales Figures in US$

Million for Years 2009 through 2018 (includes corresponding

Graph/Chart) III-71

Table 39: Middle East 10-Year Perspective for OpticalTransport Network (OTN) Equipment by Product Segment -Percentage Breakdown of Value Sales for Transport andSwitching Markets for Years 2009, 2012 and 2018 (includescorresponding Graph/Chart) III-72

7. LATIN AMERICA III-73

Market Analysis III-73

Table 40: Latin American Recent Past, Current & Future

Analysis for Optical Transport Network (OTN) Equipment by

Product Segment - Transport and Switching Markets

Independently Analyzed with Annual Sales Figures in US$

Million for Years 2009 through 2018 (includes corresponding

Graph/Chart) III-73

Table 41: Latin American 10-Year Perspective for OpticalTransport Network (OTN) Equipment by Product Segment -Percentage Breakdown of Value Sales for Transport andSwitching Markets for Years 2009, 2012 and 2018 (includescorresponding Graph/Chart) III-74IV. COMPETITIVE LANDSCAPE

Total Companies Profiled: 47 (including Divisions/Subsidiaries - 49)

The United States (25)Canada (2)Japan (4)Europe (11)- France (2)- Germany (3)- The United Kingdom (2)- Italy (1)- Rest of Europe (3)Asia-Pacific (Excluding Japan) (4)Latin America (1)Middle East (2)