The DWDM market is set to expand dramatically in the next three years, particularly into LEC, CLEC, and private networking applications. DWDM technology has been in use by long distance companies in recent years to expand the capacity of their trunks by allowing a greater number of signals to be carried on a single fiber. AT&T, Sprint, MCI and Worldcom have made long-term commitment's to DWDM technology and will be using it to ramp up their trunk speeds from 2.5 Gbps to over 40 Gbps, without adding a single fiber.

As bandwidth demands grow in the local exchange, cable TV networks, and private corporate networks, DWDM technology will be deployed into trunk and feeder networks, broadening the DWDM market significantly and creating a wider range of opportunities for DWDM device and systems vendors. Besides increasing the speeds of trunk lines, DWDM technology can also be used to perform optical multiplexing, which can segregate groups of users or particular services onto a individual bandwidths, making high-bandwidth networks easier to manage, maintain and provision. Nework providers can begin leasing “secure wavelengths” on their networks or provide optical add-drop multiplexing and routing for more highly reliable and manageable networks.

Today the DWDM market is just beginning to grow, with only a few major systems suppliers and a number of smaller device manufacturers vying for a limited market. Over the next five years, however, the DWDM market will expand rapidly, driven by the growth of the Internet and Intranets, residential broadband services, and high-speed international data services. As prices for optical amplifiers and DWDM devices fall, the market will expand further, particularly into corporate data networks and research networks, where DWDM technology offers highly efficient use of existing fiber optic facilities. The DWDM market is also growing quite rapidly in Europe and Asia and is already being deployed into the next generation of international submarine fiber optic systems to provide gigabit rates across the world’s oceans.

Who Will Benefit From This Report?

Telecom Equipment Suppliers

Table of Contents

1.0 Introduction

• 1.1 Global Fiber Optics Market Overview
• 1.1.1 North American Market
• 1.1.2 European Market
• 1.1.3 Asian Market
• 1.1.4 South American and Developing Markets
• 1.2 The Evolving Fiber Optic Network
• 1.2.1 Existing IXC
• 1.2.2 Existing Telco
• 1.2.2.1 Inter-office Trunking
• 1.2.2.2 The Local Loop
• 1.2.2.3 The Feeder Loop
• 1.2.2.4 The Distribution Loop and Fiber to the Home
• 1.2.3 Passive Optical Networking
• 1.2.4 Active Optical Networking
• 1.3 DWDM Equipment
• 1.3.1 Wavelength Terminal Multiplexer
• 1.3.2 Wavelength Add/Drop Multiplexer
• 1.3.3 Wavelength Amplifier
• 1.3.4 Wavelength Cross-connects
• 1.3.5 Wavelength Router
• 1.4 DWDM Devices and Enabling Technology
• 1.4.1 Tunable, Multi-wavelength Lasers
• 1.4.2 Multichannel Receivers
• 1.4.3 Filter Modules
• 1.4.4 Wavelength Converters/Circulators
• 1.4.5 Fiber Bragg Gratings
• 1.4.6 Planar Waveguides/Lightwave Optical Circuits
• 1.5 DWDM Applications
• 1.5.1 Long Distance
• 1.5.2 Submarine Cable Systems
• 1.5.2.1 Africa-ONE
• 1.5.3 Supercomputing Centers/Research Laboratories
• 1.5.4 Local Telecommunications
• 1.5.5 Cable TV Systems
• 1.5.6 Governments, Utilities
• 1.5.7 Enterprise Networks

 2.0 Technology Overview

• 2.1 Electronic TDM
• 2.2 From SONET to Photonic Transport
• 2.3 DWDM
• 2.4 Dense DWDM
• 2.5 DWDM Switching and Routing Architectures
• 2.6 Beyond OC-192

 3.0 Standards Developments

• 3.1 ITU (International Telecommunications Union)
• 3.2 ANSI
• 3.3 TIA
• 3.4 IEC
• 3.5 Bellcore

 4.0 Fiber Optics Cost Trends

• 4.1 Sonet/SDH Systems
• 4.2 Optical Amplifiers
• 4.3 Coarse DWDMs
• 4.4 DDWDM Price Trend

 5.0 Market Drivers

• 5.1 Demand for Higher Speed Trunks
• 5.2 Deployment of Broadband Switching Systems
• 5.3 Deployment of Optically Amplified Systems
• 5.4 Residential Broadband Services
• 5.5 Growth of the Internet
• 5.6 BOC Entry into Long Distance Market
• 5.7 Increased Reliability

 6.0 Obstacles to Growth

• 6.1 Integration with Sonet/ATM systems
• 6.2 Network Management and Testing
• 6.3 Low-cost Production
• 6.4 Compatibility with Existing Infrastructure
• 6.5 Availability of Optical Components

 7.0 Commercial Deployments of DWDM

• 7.1 AT&T
• 7.2 IXC Communications
• 7.3 LCI
• 7.4 MCI
• 7.5 Sprint
• 7.6 WorldCom

 8.0 Laboratory and Field Trials of DWDM Technology

• 8.1 Alcatel Submarine Networks
• 8.2 AT&T Labs
• 8.3 Fujitsu
• 8.4 DARPA/MONET
• 8.5 MIT Lincoln Laboratories
• 8.6 National Transparent Optical Network
• 8.7 WEST
•  

9.0 Ten-Year Forecasts

• 9.0.1 Short-term Market Growth
• 9.0.2 Long-Term Market Growth
• 9.1 US Market
• 9.1.1 IXC
• 9.1.2 LEC/CLEC
• 9.1.3 Private/Enterprise
• 9.2 European Market
• 9.3 Japan/Pacific Rim Market

10.0 DWDM Equipment Manufacturers and Developers (selected)

• 10.1 DWDM Systems
• 10.1.1 Alcatel Telecom
• 10.1.2 Artel Video Systems
• 10.1.3 Ciena Corp.
• 10.1.4 Fujitsu
• 10.1.5 IBM
• 10.1.6 Lucent Technologies
• 10.1.7 NEC
• 10.1.8 Nortel
• 10.1.9 Pirelli
• 10.1.10 Tellabs
• 10.2 DWDM Devices
• 10.2.1 AG Electro-Optics
• 10.2.2 Alcatel Optronics
• 10.2.3 Alliance Fiber Optics
• 10.2.4 AMP
• 10.2.5 Amphenol Fiber Optic Products
• 10.2.6 Aurora Associates
• 10.2.7 Bosch Telecom
• 10.2.8 Broadband Communications Products
• 10.2.9 Canadian Instrumentation & Research Ltd
• 10.2.9 Corning, Inc.
• 10.2.10 Dicon Fiberoptics
• 10.2.11 E-Tek Dynamics, Inc.
• 10.2.12 Fibersense & Signals Inc.
• 10.2.13 GEC Marconi
• 10.2.14 GCA Fiberoptics Ltd.
• 10.2.15 Gould Fiber Optics Division
• 10.2.15 Instruments. S.A., Inc.
• 10.2.16 Integrated Optical Components, Ltd.
• 10.2.16 JDS Fitel
• 10.2.17 Kaifa Technology, Inc.
• 10.2.18 Lightwave Microsystems
• 10.2.18 Lucent Technologies
• 10.2.19 Micron Optics, Inc.
• 10.2.20 MP Fiberoptics, Inc.
• 10.2.21 Nortel
• 10.2.22 Oplink
• 10.2.23 Optical Corp. of America
• 10.2.24 Optilas
• 10.2.25 Photonic Integration Research Inc.
• 10.2.26 Photonic Technologies
• 10.2.27 Queensgate Instruments
• 10.2.28 Sifam
• 10.2.29 Soltec Corp.
• 10.3 DWDM Test Equipment
• 10.3.1 Anritsu Wiltron
• 10.3.2 Burleigh Instruments
• 10.3.3 Hewlett Packard
• 10.3.4 ILX Lightwave Corp.
• 10.3.5 Tektronix

 11.0 Strategies for Success

• 11.1 IXCs
• 11.2 LECs
• 11.3 CLECs
• 11.4 DWDM System Manufacturers
• 11.5 Component Manufacturers

 List of Exhibits

• Exhibit 1.1 Multilayered, Multiwavelength National Optical Network (MONET)
• Table 1.0 Present 10 Gbps Upgrade Solutions Compared
• Exhibit 1.2 AT&T Research Domain Analysis for TDM and DDWDM Systems
• Exhibit 1.3 DWDM Technology Roadmap
• Exhibit 1.4 Global Fiber Optics Market
• Exhibit 1.4 Global Fiber Optic Systems Markets ($Billions)
• Exhibit 1.5 Regional Fiber Optics Market
• Exhibit 1.6 Global Optical Fiber Volume (MKm)
• Table 1.7 IXC Deployed Fiber System Fiber Miles (000)
• Exhibit 1.7 Telco Local Exchange Network
• Exhibit 1.8 FTTC and FTTH Architectures
• Exhibit 1.9 DWDM Optical Line System, with End Terminals and Repeater
• Exhibit 1.10 Wavelength Add-Drop Multiplexer (MONET)
• Exhibit 1.11 Integrated NxN Multiplexer for Wavelength Routing
• Exhibit 1.12 Waveguide Grating Router Multifrequency Laser
• Exhibit 1.13 DWDM Transmitter Array PIC
• Exhibit 1.14 Dense DWDM Interference Filters
• Exhibit 1.15 8x1 and 1x8 DWDMs Employing Fiber Bragg Gratings and Miniature
• Bandpass DWDMs
• Exhibit 1.16 Interexchange Carrier Average Capacity Utilization
• Exhibit 1.17 Experimental Set-up for 10 Gbps x 4 -channel DWDM Transmission using
• 1570 km installed Submarine Cable (NEC)
• Exhibit 1.18 DWDM Projects in the Eurasia-Pacific Region
• Exhibit 1.19 Proposed Africa-ONE Network
• Exhibit 1.20 Lucent Technologies Proposed Metro Application
• Table 1.20 LEC Fiber Deployment, Fiber Miles
• Exhibit 1.21 Hybrid Digital/Analog Multiwavelength System for CATV Networks
• Exhibit 1.22 FTTH PON for Video Distribution Networks (US West)
• Exhibit 1.23 Polymer Waveguide DWDMs for High-Speed LANs
• Exhibit 1.24 LAN/MAN Integration Using DWDM Technology
• Exhibit 2.1 SONET Routing vs. DWDM Routing (NTONC)
• Exhibit 2.2 Uni-directional and Bi-directional DWDM Configurations (Pirelli)
• Exhibit 2.3 DDWDM Routing and Switching Architectures (MONET)
• Exhibit 3.1 Structure of ITU Groups Responsible for Optical Recommendations
• Exhibit 3.2 List of Questions to be studied by ITU-T Study Group 15 during the 19972000 study period
• Exhibit 3.3 ITU Nominal Central Frequencies for Multiwavelength Networks
• Exhibit 4.1 SONET Terminals Price Trends ($000)
• Exhibit 4.2 16-Channel In-line Optical Amplifier Price Trend
• Exhibit 4.4 WADM Price Trend
• Exhibit 6.1 Bearer Channel and Optical Service Channel processing in a WADM 97
• Exhibit 6.2 Dispersion Limits for Fiber Optic Systems
• Exhibit 7.1 MCI Proposed Transport Architectures
• Table 8.0 DWDM Transport Systems "Hero" Experiments
• Exhibit 8.0 6000 km, 8 x 2.5 Gbps Experimental Set-up
• Exhibit 8.1 Experimental Set-up for 8 channel 10 Gbps Transmission System
• Exhibit 8.3 System Parameters from Fujitsu's Experiments
• Exhibit 8.4 MONET Testbeds
• Exhibit 8.5 MONET Enabling Technologies
• Exhibit 8.6 Basic Configuration of New Jersey MONET Testbeds
• Exhibit 8.7 MONET Project Schedule
• Exhibit 8.9 Diagram of NTONC during OFC '96
• Exhibit 9.1 U.S. SONET Equipment Market Forecast, 1997 - 2001
• Exhibit 9.2 World DDWDM Systems Market
• Exhibit 9.3 US DDWDM Systems Market
• Exhibit 9.4 US DDWDM Market by Carrier Type
• Exhibit 9.5 US IXC DDWDM Systems Market
• Exhibit 9.6 US IXC Sonet Equipment Forecast
• Exhibit 9.7 US LEC/CLEC DDWDM Equipment Market
• Exhibit 9.8 US LEC/CLEC SONET Equipment Market
• Exhibit 9.9 Japan/Pacific Rim DDWDM Market
• Exhibit 10.1 Ciena Contract Agreements
• Exhibit 10.2 Lucent 1997 Proposed Release Plan for Optical Networking Products
• Exhibit 10.3 Notable Nortel SONET and DWDM Deployments
• Exhibit 10.4 Bosch Telecom FlexPlex MO-16 System