Data Demand Drives SONET and WDM, Says Insight Research.

PARSIPPANY, NJ--(BUSINESS WIRE)--Oct. 2, 1998--Global data traffic demands on telecommunication carrier networks, driven in part by increasing Internet usage, will grow at a 250 percent annual clip through 2002, providing a significant opportunity for SDH/SONET and wave division multiplexing (WDM) manufacturers, says a new report from INSIGHT RESEARCH.

Fiber optic SDH/SONET-layered ring networks will continue to be the backbone for high-speed carrier networks, but they will increasingly use WDM technology to create the capacity to carry the expected data bandwidth demand--25 terabits per second by 2002.

According to INSIGHT's report "High-Speed International Fiber Optic Communications: SDH/SONET or WDM 1998-2003," increasing network capacity is being driven by a dramatic reduction in cost unfolding in the transmission area. A "Photonic Moore Curve" is making it possible to double transmission bandwidth capability every 18 months while cutting the cost per bit per second in half every two years. At $80,000 per month for a transcontinental T-3 line, the cost today of transporting a single bit is about two nanodollars, or two billionths of a dollar. INSIGHT believes that the cost will easily drop to 0.2 nanodollars per bit within three years due to competition among carriers and technological advances such as DWDM.

"WDM will be the most cost-effective option carriers have to provide the necessary bandwidth without installing additional fiber," explained Robert Rosenberg, president of INSIGHT. "We expect WDM revenue to top $4 billion in 2002. It's what the carriers must buy to keep up with demand," Rosenberg said.

Further forecasts of SONET, SDH, and WDM revenue are published in "High-Speed International Fiber Optic Communications: SDH/SONET or WDM 1998-2003," a 250-page market research study now available from INSIGHT RESEARCH for $3,495. The report provides an overview of fiber optic backbone network deployment around the world, including submarine systems. Also presented are economic snapshots of most major countries, including their teledensity, minutes of traffic, telecom service revenue, telecom investment, and current and expected fiber optic deployment of the dominant carriers.

INSIGHT RESEARCH, based in Parsippany, NJ, is a respected source for telecommunications market research and competitive analysis. Visit Insight at http://www.insight-corp.com for excerpts of our latest research and information on our custom research services. An excerpt of this study is on the http://www.insight-corp.com/intlfo.html page. A RealAudio(R) clip with additional comments is online at http://www.yearbooknews.com/rafiles/7064302.ram or dial [phone] and enter message #7064302. For more information on this study, please contact: