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China should install DWDM to increase T/R pair use, says ElectroniCast chief

Posted: 07 Mar 2002 ?? ?Print Version ?Bookmark and Share

Keywords:electronicast? china? world trade organization? fiber optic transmitter? fiber optic receiver?

With China's entry into the World Trade Organization, the country is expected to demonstrate strong growth as they compete with international rivals in the fiber-optic optoelectronic transmitter/receiver pairs (T/R pair) market.

According to ElectroniCasts latest report entitled "The Fiber Optic Optoelectronic Transmitter Global Market Forecast," Asia-Pacific countries will show strong growth with consumption rising from $0.9 billion in 2001 to $4.9 billion in 2006. This will be fueled by the demand for expensive long haul links in China, which will move to 10Gbps and 40Gbps systems.

To get a better share in the T/R pair market, it is important to note that China will need to not only install more fiber within its metro areas, but will also need to install DWDM in province-to-province links.

In an interview with ElectroniCast President Stephen Montgomery, he said that one effort to increase T/R pair consumption involves the use of hand assembly. "Use hand assembly only when economically feasible; otherwise the use of automation in assembly and testing, as well as packaging, is essential."

Contract manufacturing

There is a trend for suppliers to use outsourcing, Montgomery adds, "China must plan to operate as contract manufacturers or electronic manufacturing services (EMS) or outsources to learn how the fiber-optic optoelectronic T/R pair market works. Also, the designing and use of standard packaging will accommodate mass-production. Custom packages and packaging will have lower volume, however because of higher prices per port, the overall value (price x units=value) is a very attractive niche."

Chinese manufacturers, even those from outside of the optical communication field can open competition in delivery of broadband services. "This is especially true for companies that have a proven track record to mass produce higher quality products. People (not only machines) may also have a place, especially in low labor rate areas. People may prove to have a roll in loading/unloading parts into machines, controls, management, inventory and custom packaging," notes Montgomery.

Major trends

Over the next five years, the fastest optoelectronic consumption growth will be in private data communication networks, subscriber distribution and military/aerospace applications. In these markets, fiber-optic must compete against the cost of unshielded and shielded twisted-pair copper wires and coaxial cables. The key trends for the fiber-optic optoelectronic T/R pair industry will include the following:

? The use of multiwavelength T/R pairs. There are three ways to increase bandwidth. This includes: more fiber; increase data rates; and increase WDM. Therefore, T/R pairs will increasingly be higher data rate and DWDM capable.

? The active use of 40Gbps T/R pairs beginning in 2003 to 2004. The alternative is 10Gbps x N (DWDM). By 2003 to 2004, price points will begin to invite 40Gbps into the network.

? 10Gbps T/R pairs will be packaged into transceivers and transponders. The major reason for this, is the demand for smaller packages and the evolution of integrated multifunction packages.

? Low prices will be pushed in VCSELs to drive-up market share and as a result of higher volume production.

?Kathryn S. Gerardino

Electronic Engineering Times?Asia

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