As competing technologies gain market share over the next few years, the SONET/SDH market will continue to thrive, according to Cahners In-Stat Group. The high-tech market research firm projects that the market for SONET/SDH systems will zoom from $11.89 billion in 1999 to $31.26 billion in 2004.
"SONET/SDH market growth will be strong through 2002, but beginning in 2003, it will slow as competing solutions such as dense wave division multiplexing (DWDM) gain ground," says Doug McEuen, industry analyst for In-Stat's Voice and Data Communications Group. SONET and its European equivalent, SDH, were designed before the explosion of data services and were optimized to transmit voice signals. McEuen continues, "SONET/SDH's data solution is very inefficient, its systems are not easily scaleable and are time-consuming to provision."
However, In-Stat says SONET is an entrenched technology, and changing the infrastructure to other technologies would be a massive, expensive endeavor. The technology, therefore, will remain important to several market segments such as to Interexchange Carriers (IXCs), which are commonly called long distance carriers. According to the research agency, IXCs will continue to use SONET as all long-haul transport must pass through two metro SONET rings, at the beginning and end of the signal transmission. Additionally, the technology is heavily relied upon by Incumbent Local Exchange Carriers (ILECs); by the Regional Bell Operating Companies (RBOCs) that dominate local calling services, which will continue to use SONET in metro markets where it is deeply entrenched; by Competitive Local Exchange Carriers (CLECs); and by Internet Service Providers (ISPs).
For more information on the report, "SONET/SDH Systems Market Analysis," visit, www.instat.com.
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