Metro Optical Market Shines Through the Darkness According to In-Stat/MDR.

Business/High-Tech Editors

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Jan. 28, 2002

Cahners In-Stat/MDR (www.instat.com) expects the metro optical network market (including traditional SONET, next generation SONET, Dense Wavelength Division Multiplexing (DWDM) and optical Ethernet) to grow from $13 billion in 2001 to $23.6 billion in 2005, making it one of the fastest growing segments in the telecommunications equipment industry.

The high-tech research firm reports that over the next year, legacy Synchronous Optical Network and Synchronous Digital Hierarchy (SONET/SDH) networks will be expanded and upgraded as carriers weather the current economic climate. However, newly constructed networks that are designed specifically for data-centric traffic and based on next-generation optical network systems, will offer the best hope for future profitability. These networks will lower operating costs, improve packet-handling efficiency, and position network operators to capture revenue from new services.

According to Norm Bogen, a Director at In-Stat/MDR, "The current U.S. economic recession and depressed demand for broadband services will likely continue through at least mid-2002. Network investment will be minimized, with network operators trying to minimize losses. The long-term forecast for U.S. and international metro optical network markets remains very positive and will be the primary driving force in the metro optical equipment market."

In-Stat/MDR has also found that:

-- Large global equipment suppliers including Alcatel, Cisco, Fujitsu and
Nortel compete with a slew of relatively young start-ups including Atrica,
Foundry Networks and ONI Systems in the metro optical space.

-- Applications such as broadband Internet access, videoconferencing, and
streaming media are generating steep increases in metro network traffic each
year. To meet future needs, metro networks must exhibit scalability,
simplification, multi-service, protection and QoS.

The report, "Metro Optical Networks: Evolution vs. Revolution" (No. IN020400OP), provides an overview of the metropolitan optical network equipment market, reviews the structure and requirements of metropolitan networks and compares emerging metro optical networking technologies/product segments. Alternative network solutions are also discussed offering insight into the metro network evolution. Multi-year market revenue forecasts are presented for each technology segment, in addition to a listing and brief description of equipment vendors. To purchase this report, or for more information, please visit http://www.instat.com/catalog/cat-op.htm or contact Courtney McEuen at 916/984-1179; [e-mail]. The report price is $2,995 USD.

Cahners In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end-users.

Cahners In-Stat/MDR is a unit of Cahners Business Information (http://www.cahners.com), a leading provider of critical information and marketing solutions to business professionals and a member of the Reed Elsevier plc (http://www.reed-elsevier.com).