Phone Companies to Invest $64 Billion in NextGen Multiplexers by 2008
Posted on: Thursday, 24 July 2003, 06:00 CDT
BOONTON, N.J.--(BUSINESS WIRE)--July 24, 2003--In an effort to keep pace with continuing strong demand for data services, phone companies will invest almost $64 billion over the next five years in the next generation of add-drop multiplexers, predicts a new market research study from Insight Research Corporation. An add-drop multiplexer (ADM) is akin to an on-ramp/off-ramp in a telecommunications network, moving slower-speed traffic onto and off of higher-speed portions of a network.
Insight Research's industry analysis report, Next Generation Add-Drop Multiplexers 2003-2008, indicates that increases in Ethernet usage, the number of new providers requiring network attachments, and continued strong end-user demand for data services will force carriers to make ADM upgrades. In order to forecast ADM demand industry wide, Insight Research constructed a two-stage model. Network traffic was modeled to show its impact on demand for new ADM installations. The traffic demand model was then cross-checked by estimating the number of potential installation sites before modeling the number of ADM installations per site.
"Most of the industry buzz is about Ethernet edge switches. But with the RBOCs in the driver's seat, SONET is getting a make over," says Robert Rosenberg, Insight Research President. "We anticipate that WDM technology will be deployed in conjunction with NextGen SONET, making it possible to add transport capacity to the metro ring without disrupting current operations. This type of non-disruptive upgrade strategy is favored by the RBOCs, and it will drive the marketplace," Rosenberg concludes.
Next Generation Add-Drop Multiplexers 2003-2008 provides a detailed analysis of the US market for SONET ADMs, Next Generation SONET ADMs, Ethernet ADMs and Optical ADMs. This industry research report forecasts unit shipment by location within the network, and provides a revenue forecast for the four classes of ADMs. An extensive traffic-demand model underpins the market estimates.
An excerpt of this add-drop multiplexer market research report, table of contents, and ordering information are online at http://www.insight-corp.com/reports/adm.asp. This 159-page report is available immediately for $3,995 (hard copy). Electronic reports can be ordered online; visit our Web site, or call 973/541-9600 for details.
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