Strong bandwidth demand will drive optical components to $6.0B in 2012

Demand will drive an 11% compounded annual growth rate

For immediate release, 25 February 2008. Ovum RHK today posted a new optical component five-year forecast for WAN, datacom, and access components.

Forecast highlights:

• Merchant demand is led by WAN optical components, growing to $3.5 billion in 2012, followed by datacom at $1.5 billion and access at $0.97 billion.
• Total demand for 40Gbps modules to reach nearly $900 million by 2012.
• Total demand for 10Gbps modules to reach $1.6 billion by 2012.
• 8 and 10Gbps datacom transceivers to be dominated by SFP+ form factor - over 70% in 2012.
• ROADM modules to grow to over $300 million in 2012.

"Bandwidth demand is strong in all segments of the market as carriers deploy new networks to support rapid growth in bandwidth intensive services," said Daryl Inniss, vice president at Ovum RHK. "The OC suppliers are challenged with managing a torrid market appetite for new products. Fortunately, the demand exists, but OC suppliers must ramp production, manage suppliers, contract manufacturers, and inventory and introduce new products to maximize revenues and margins."

- Ends -

For further information:

Ovum RHK's report "Market Forecast: global optical components" includes forecasts for total and merchant demand, for modules and discrete components, for passive and active components, for DWDM, SONET/SDH, datacom, and FTTx through 2012. For more information or to speak with Daryl Inniss about this research, please contact us at prteam@ovum.com, or contact a member of our global PR team listed below.

About Ovum RHK:

Ovum RHK provides market research advisory services to telecom equipment and component vendors and service providers alike. Ovum RHK is a part of Ovum, advising on the commercial impact of technology and market changes in telecoms, with offices in London, Paris, Cologne, Boston, Melbourne, Seoul and San Jose.

About Ovum:

Ovum's primary activity is providing value-added advisory services and consulting to retained and project clients. The company acts as a well-respected and trusted source of industry data, knowledge and expertise on the commercial impact of technology, regulatory and market changes. Ovum engages in continuous research and industry analysis to determine market dynamics in its specialist sectors.

Ovum has developed long-standing relationships with many of its corporate clients, which include major international blue-chip companies such as Alcatel-Lucent, AT&T, BT, Cable & Wireless, Cisco Systems, Deutsche Telekom, Fujitsu, HP, IBM, Microsoft, Telstra and Vodafone.

Ovum is part of the Datamonitor Group.

Ovum's PR contacts:

North America:
Sara Kaufman
Tel: +1 617-722-4602
Email: sara.kaufman@ovum.com

EMEA:
Maria Di Martino
Tel: +44 (0) 20 7551 9238
Email: maria.dimartino@ovum.com

Asia-Pacific:
Tanisha Kuckreja
Tel: +61 3 9601 6723
Email: tanisha.kuckreja@ovum.com