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World SONET/SDH Next-generation SONET and OTN Test Equipment Markets
Frost & Sullivan, March 2006


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This Frost & Sullivan research service entitled World SONET/SDH Next-generation SONET & OTN Test Equipment Markets provides an overview of the revenues generated in the SONET/SDH test equipment market. It also offers in-depth geographic, application, end-user analyses. In this research service, Frost & Sullivans expert analysts thoroughly examine the traditional SONET/SDH, next-generation SONET/SDH and OTN test equipment markets.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
- Traditional SONET/SDH
- Next-generation SONET/SDH
- OTN test equipment

Market Overview

Need for Next-generation SONET/SDH Testing Spurs Demand for Test Equipment

The deployment of next-generation telecommunication technologies is spurring demand for synchronous optical network/synchronous digital hierarchy (SONET/SDH) test equipment. This is largely due to the sudden increase in capital expenditure on high-speed networks following the telecom recovery. In addition to upgraded SONET/SDH networks that meet the increase in bandwidth speed and data rates, 40-gigabit Ethernet, high-accuracy jitter testing, and integrated solutions offer growth prospects to vendors in this market.

'With the migration of end users to next-generation SONET/SDH, vendors must be in a position to develop scalable, integrated, and compatible test equipment and solutions,' says the analyst of this research service. 'At the same time, product differentiation is a critical competitive factor for vendors looking to market their next-generation test products.'

Demand for Integrated Solutions: Asia Pacific Offers New Growth Opportunities

The spurt in research and development (R&D) activities taking place currently among service providers makes it all the more imperative for test vendors to closely monitor customer needs, evolving standards, and advancements in SONET/SDH networks. Integration is likely to be a key factor for success and vendors that offer a compact and flexible platform, with all the functionalities required by end users in one solution, stand to gain a significant competitive edge. 'Such integrated solutions need to offer a high price/performance ratio,' explains the analyst. 'This means that they should allow service providers to benefit from compact, easy-to-handle units, without having to sacrifice the features and functionalities of the solutions, all at a minimal price.'

In addition to integrated solutions, countries such as China and India present huge potential for test equipment vendors. Not only is there a growth in the number of local equipment manufacturers, but end users such as major network equipment manufacturers are also in the process of setting up their bases in this region. Vendors looking to increase market share need to capitalize effectively on the aggressive deployment of STM1/4 networks by China.


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