Worldwide Metro DWDM Market to Reach Nearly $12.6 Billion by 2006

BOSTON, MA -- Network technology in the Metro market is evolving, and as data traffic continues to increase so does the need for more capacity. Increasing capacity in the Metro network can be costly and usually requires either running additional fiber or building a Metro DWDM system. The latest market and technology assessment report from Pioneer Consulting, Metro DWDM: Global Opportunities and Strategies in the Metro Market, predicts the market opportunity for Metro DWDM systems will increase from almost $1.4 billion in 2001 to nearly $12.6 billion by 2006. Economic factors justifying Metro DWDM deployments are often far from clear-cut. What appears to be an optimal alternative at first may not in fact provide the best solution when evaluated for long-term economic value. A number of factors involving local conditions, such as distances, higher channel utilization growth rates and the cost of pulling more fiber through dense areas with exhausted conduit duct space, must be considered. According to Pioneer Consulting, laying more fiber is generally the best economic solution in terms of overall cost and cost per wavelength with spans under 20 km. At distances above 50 kms, Metro DWDM is frequently the best economic solution, in terms of both overall cost and cost per wavelength. For spans between 20 and 50 kms, either additional fiber or DWDM can prove optimal, depending on conditions and the economic criterion applied for decision-making. "Carriers that are deploying solutions in the metro network within the 20 to 50 km range must decide between overall deployment costs, which favors Metro DWDM, and cost per wavelength, which favors additional fiber deployment," added Doug McEuen, senior market analyst, optical networking. "With an eye towards the bottom line, carriers are currently preferring Metro DWDM, and as overall DWDM costs continue to trend downward faster than overall fiber deployment costs, the relationship between cost and distance will change, resulting in an increased market opportunity for Metro DWDM. The Metro DWDM: Global Opportunities and Strategies in the Metro Market report takes an in-depth look at the market dynamics, opportunities and economic justifications in deploying a Metro DWDM system. The report examines the Metro DWDM market from both the equipment vendor's and service providers' point-of-view and provides a five-year, global market forecast including, regional breakdowns for Metro DWDM equipment sales. According to Paul Kellett, senior director of research, "Metro DWDM is a natural extension of long-haul DWDM. As overall DWDM costs decrease faster than the overall costs of deploying additional fiber in the metro, Metro DWDM will prove out economically in an increasing number of cases." For more information on the Metro DWDM: Global Opportunities and Strategies in the Metro Market report visit www.pioneerconsulting.com