Optical Network Equipment Spending in Europe Up 8 Percent Year over Year, Reports IHS

Cambridge, MASSACHUSETTS (August 17, 2015)—Market research firm IHS (NYSE: IHS) today released vendor market share and preliminary analysis from its 2^nd quarter 2015 (2Q15) IHS Infonetics Optical Network Hardware report. (Full report published by August 24.)

According to the report, global optical network hardware revenue (WDM and SONET/SDH) grew 22 percent in 2Q15 from the previous quarter, but was flat from a year ago. Europe is the only major world region that posted positive year-over-year growth in 2Q15, up 8 percent.

“With three consecutive quarters of good results, Europe is signaling a reversal of the terrible optical spending that we’ve seen in the region over the last five years,” said Andrew Schmitt, Research Director for Carrier Transport Networking at IHS. “This strength is concentrated in Alcatel-Lucent, Ciena and Infinera .”

“When taking into account currency effects, the results are even stronger — adjusted for exchange rate, optical spending in Europe saw a 30 percent year-over-year growth rate in the second quarter when measured in euros,” Schmitt said.

MORE OPTICAL MARKET HIGHLIGHTS

• On a rolling 4-quarter basis, WDM equipment spending further extended 3 years of consecutive growth
• Spending on WDM equipment grew 23 percent in 2Q15 from 1Q15, and was up 6 percent from 2Q14
• WDM gear comprised 86 percent of total worldwide optical hardware revenue in Q2
• Spending on optical network hardware in Asia Pacific surged 36% in 2Q15 from the previous quarter, but is down 2% from a year ago
• Alcatel-Lucent announced an intention to merge with Nokia , an action IHS does not expect to have any transformative effects on ALU’s optical business or the competitive landscape

OPTICAL ANALYST CONFERENCE CALL

Clients: Log in to view analyst Andrew Schmitt’s optical market recap and outlook, live or on-demand: www.infonetics.com/cgp/login.asp?id=1021.

OPTICAL REPORT SYNOPSIS

The quarterly IHS Infonetics Optical Network Hardware market size, share and forecast report, led by analyst Andrew Schmitt, examines the vendors, markets and trends related to metro and long haul WDM and SONET/SDH equipment used to build optical networks. The report also tracks Ethernet optical, SONET/SDH/POS and WDM ports. Vendors tracked include Adtran, Adva, Alcatel-Lucent, Ciena, Cisco, Coriant, Cyan, ECI, Fujitsu, Huawei, Infinera, NEC, Padtec, Transmode, TE Connectivity , Tyco Telecom, ZTE, others. To purchase the report, please visit www.infonetics.com/contact.asp.

RECENT AND UPCOMING RESEARCH

Download the IHS Infonetics 2015 service brochure or log in: www.infonetics.com/login.

• ROADM Components Forecast (May 6)
• Packet-Optical Strategies: Global Service Provider Survey (May 12)
• Optical Network Hardware Vendor Scorecard (June 30)
• 100G+ Coherent Optical Equipment Ports Forecast (Aug. 4)
• OTN and Packet-Optical Hardware Forecast (Sept. 8)
• 1G/10G/40G/100G Networking Ports Forecast (Oct. 1)
• Telecommunications Equipment Vendor Scorecard (Oct. 15)
• 100G+ and ROADM Strategies: Global Service Provider Survey (Oct. 28)
• Mobile Fronthaul and CPRI Optics Forecast (Fall 2015)

IHS INFONETICS WEBINARS (https://www.infonetics.com/infonetics-events)

• Building Application-Aware Mobile Networks Using SDN & NFV (Sept. 16: Register)
• SDN for Optical Transport (Watch now)
• Evolving Network Architectures: Cloud, SDN, NFV and Packet-Optical (Watch now)
• Optical Transport for Data Centers and Content Providers (Watch now)
• Multilayer Optical Transport (Sponsor)
• The Metro 100G Coherent Evolution (Sponsor)