North American Optical Transport Spending Drops in Third Quarter of 2014, According to Dell'Oro Group

Metro WDM Takes a Big Hit in North America

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Nov 19, 2014, 09:03 ET

REDWOOD CITY, Calif., Nov. 19, 2014 /PRNewswire/ -- According to a newly published report by Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, North American optical transport equipment demand declined 13 percent year-over-year in the third quarter of 2014.

"Optical equipment demand was quite robust in North America leading up to the third quarter," said Jimmy Yu, Vice President of Optical Transport research at Dell'Oro Group. "Within one quarter, however, the optical market took a sudden and negative turn as major tier-one North American service providers reduced deployments and cut spending on transport equipment. The reduction in optical purchases in the quarter was likely due to necessary network architecture decisions. The remainder of this year and next year may not be much brighter as one of the largest telecom operators, AT&T, intends to cut its capital spending in 2015, and is poised to refrain from certain network expansion until the Federal Communications Commission (FCC) clarifies its net neutrality policies," added Mr. Yu.

The majority of optical transport equipment revenue decline in North America was due to a 17 percent year-over-year decline in wavelength division multiplexers for metro applications.

About the Report
The Dell'Oro Group Optical Transport Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers' revenue, average selling prices, unit shipments (by speed including 40 Gbps, 100 Gbps, and >100Gbps). The report tracks DWDM long haul terrestrial, WDM metro, multiservice multiplexers (SONET/SDH), optical switch, and optical packet platforms. To purchase this report, call Julie Learmond-Criqui at +1.650.622.9400 x244 or email [email protected]

About Dell'Oro Group
As the trusted source for market information about the networking and telecommunications industries, Dell'Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.DellOro.com.

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SOURCE Dell'Oro Group