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| Gartner Dataquest Says Worldwide Wavelength Service Revenue Will Top $3 Billion by 2005 |
| Findings Available in Gartner Dataquest's Worldwide Optical Network Equipment and Components Research Service |
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SAN JOSE, Calif., September 20, 2001 - Wavelength or "lambda" services using dense wave division multiplexing (DWDM) as an alternative to structured high-capacity SONET-based private lines are forecast to grow from $1 billion worldwide this year to more than $3.3 billion in 2005, according to Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB).
Wavelength growth has been powered by the worldwide expansion of bandwidth demand, including for the Internet and Internet Protocol (IP), dramatic increases in WAN and LAN traffic, computer data centers, storage area networks (SANs), new optical services such as public Ethernet, and more. The globalization of businesses and the formerly regional carriers that serve them is another crucial market driver. "Wavelength services are a rapidly growing alternative to structured high-end SONET-based private lines as well as dark fiber," said Steve Koppman, senior analyst for Gartner Dataquest's Telecommunications and Networking group. "While at least half wave revenue today is carrier wholesale and at least half the remainder sales to ISPs, enterprise retail will grow over the next few years, approaching or exceeding 20 percent of the market." Wavelengths have a number of potential advantages over both conventional private line and unlit "dark fiber." Long-haul waves are sold primarily on an "unprotected" basis, allowing customers lower prices than conventional private line while waves are at the same time typically more economical than bringing up a business customer's own national or international dark fiber network. Wavelengths can also mean more available carrier bandwidth supply, faster provisioning and greater flexibility, scalability and protocol independence. They will tend to facilitate deployment of new optical technologies like public Ethernet in long-haul and metropolitan networks, though at least in the near term, the economic case for waves is not as strong in the metro as the long-haul. Additional information is available in the Gartner Dataquest Perspective "Lambdas Worldwide: The New 'Wave' in Dedicated Services." This market analysis examines the advantages and problems of wavelength services and provides a worldwide forecast by region. This information is available to clients of Gartner Dataquest's Worldwide Optical Network Equipment and Components research cluster. This service provides equipment vendors, service providers and investors with strategic market information across the breadth of the optical networking market. Optical components, systems, and optical services are analyzed at the global and regional level to provide clients a holistic understanding of the market’s dynamics. This service is targeted at optical components manufacturers; optical switching systems vendors; traditional and emerging equipment manufacturers; ISPs; incumbent and next generation carriers implementing an optical infrastructure; and the financial community. More information about the Worldwide Optical Network Equipment and Components research service can be found on Gartner's Web site at http://www.gartner.com/1_researchanalysis/focus/tcoptnetwrk.html. This research cluster is part of Gartner Dataquest's Telecommunications and Networking group. This group provides analysis for the full spectrum of telecom and networking issues. To keep up to date on the latest telecommunications issues, please visit Gartner's Telecommunications Focus Area at http://www.gartner.com/1_researchanalysis/focus/telecom_fa.html. To subscribe to Gartner Dataquest programs, please call 800-419-DATA, or 408-468-8009. Reports can be purchase on the Internet at www.gartner.com. Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the telecommunications, semiconductor, computer systems and peripherals, document management, software and services sectors of the global information technology industry. Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut, and consists of 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide. The company achieved fiscal 2000 revenue of $855 million. For more information, visit www.gartner.com. |
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Contact: Christy Pettey 408-468-8312 christy.pettey@gartner.com |
