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Fiber Access Market Gains Momentum, Driven by Ethernet Technology, According to IDC.


Business Editors/High-Tech Writers

FRAMINGHAM, Mass.--(BUSINESS WIRE)--June 3, 2004

Fiber access networks are the "last mile" technology that bring the capacity of optical fiber right to end customers. Spurred by a favorable regulatory climate regulatory climate

The extent to which a regulated firm or industry is permitted to earn an adequate return on the stockholders' investment. This term is nearly always used in reference to utilities, which are required to obtain approval for rate changes.
 throughout much of the world and by demand for high-speed data, entertainment, and voice, the fiber access equipment market is poised for growth. IDC forecasts that revenue will increase from $503 million in 2003 to $2.4 billion by 2008 for a 37% compound annual growth rate (CAGR CAGR

See: Compound Annual Growth Rate
) over the period.

"Fiber is the next-generation wireline replacement for copper access networks," said Sterling Perrin, senior research analyst, Optical Networks at IDC. "Clearly, the migration from copper to fiber will take a long time - decades may pass before fiber access lines outnumber copper access lines. But the migration has begun, as evidenced by the $500 million in revenue generated in fiber access in 2003. The migration is also evidenced in the joint RBOC (Regional Bell Operating Company) The Bell telephone companies that were spun off of AT&T by court order in 1984 (the Divestiture). Also known as the "Baby Bells," the initial seven RBOCs were Nynex, Bell Atlantic, BellSouth, Southwestern Bell, US West,  RFP (Request For Proposal) A document that invites a vendor to submit a bid for hardware, software and/or services. It may provide a general or very detailed specification of the system.

1. (business) RFP - Request for Proposal.
2.
 for Fiber to the Premises Fiber to the premises (FTTP) is a form of fiber-optic communication delivery in which an optical fiber is run directly onto the customers' premises. This contrasts with other fiber-optic communication delivery strategies such as fiber to the node (FTTN), fiber to the curb  issued last summer."

Looking at the fiber access equipment market over the next five years, IDC finds that Ethernet will be by far the dominant technology, not ATM-based passive optical networks (APON See PON. ) nor G.983, equipment that was standardized by the ITU (International Telecommunication Union, Geneva, Switzerland, www.itu.ch) A telecommunications standards body that is under the auspices of the United Nations. Comprising more than 185 member countries, the ITU sets standards for global telecom networks.  and, until now, has been most closely associated with fiber in the access network. Driving Ethernet fiber access will be the Asia/Pacific region, which is leading the metro Ethernet services charge, and where many of the deployments to date have been made using newer Ethernet equipment, rather than older APON.

IDC concludes that systems vendors and systems vendor suppliers need to take a global view of the market, realize the significance of Ethernet equipment in fiber access networks today and moving forward, and understand that G.983 APON will play a minority role in the global market. That said, the U.S. RBOCs remain committed to APON technology, and, thus, fiber access networks will not role out as homogenously as the Ethernet supporters would like.

IDC's Worldwide Fiber Access Equipment 2004-2008 Forecast and Analysis (IDC#31284) study forecasts the five-year revenue opportunity for fiber access equipment from 2004 to 2008. IDC breaks down fiber access equipment revenue by geographic region, including North America, Europe, Asia/Pacific, and the rest of the world (ROW). IDC also breaks down the worldwide market by the major equipment segments, including APON, Ethernet PON (Passive Optical Network) An optical point-to-multipoint access network. There are no optical repeaters or other active devices in a PON, hence the name "passive.  (EPON See PON. ), and point-to-point Ethernet equipment.

To purchase this document, call IDC's sales hotline at 508-988-7988 or email sales@idc.com.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.

IDC is a division of IDG IDG International Data Group
IDG Integrated Drive Generator
IDG Installation Design Guide
IDG Internet Discussion Group
IDG Inset Dielectric Guide
IDG International Dangerous Goods (mail, shipping) 
, the world's leading IT media, research and exposition company.

All product and company names may be trademarks or registered trademarks of their respective holders.
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Jun 3, 2004
Words:535
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