SCOTTSDALE, AZ -- High-tech research firm In-Stat/MDR (www.instat.com) finds that manufacturers of Synchronous Optical Network (SONET) and Synchronous Digital Hierarchy (SDH) equipment suffered heavily in 2001, due to a sharp cut back on capital expenditures by telecommunications carriers and the demise of many Competitive Local Exchange Carriers (CLECs). Growth will be minimal in 2002, with the market finally regaining momentum in 2003 and beyond. According to Richard Cunningham, a senior analyst with In-Stat/MDR, "However, the competitive landscape will grow even more competitive." In addition to the long-standing manufacturers like Lucent, Alcatel, Nortel Networks, and Marconi, a new group of manufacturers is jumping into the fray, touting various "next-generation" embodiments of SONET/SDH that will enter the marketplace almost exclusively in the metro core and metro access levels of the optical network. Crowding in the space will definitely result in a shake-out. "A wave of merger/acquisition activity will occur in coming months, as some of the established companies purchase new capabilities." In-Stat/MDR also found that: -- SONET/SDH market will show slow growth from present levels through 2006 to reach a level of $21.4 billion in 2006, of which approximately $7 billion will be next-gen SONET/SDH equipment. -- Nortel, Lucent and Fujitsu had the greatest market shares and revenues for SONET/SDH equipment in 2001. -- Approximately a dozen major vendors comprise the bulk of the SONET/SDH marketplace today. Most of these companies have a well-established base in the long-haul market and have moved aggressively "down" into the metro core. A handful of challengers are simultaneously moving "up" from metro access levels. The report, SONET/SDH:The Struggle Toward Recovery (#IN020371OP), provides primary and secondary research of companies competing in the SONET/SDH market as well as forecasts and anticipated revenue data. The report also identifies customers and what they want. For more information visit www.instat.com/catalog/cat-op.htm