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Optical fiber spending to rebound by 2005

Posted: 29 Aug 2002 ?? ?Print Version ?Bookmark and Share

Keywords:telecommunications industry association? tia? optical fiber? ftth? network topology?

In the "2002 Telecommunications Market Review and Forecast", the Telecommunications Industry Association (TIA) predicts that new broadband applications, increasingly efficient optical gear and a projected rise in FTTH installations will spur significant growth in spending by carriers, developers, and building owners.

A jump in fiber spending is expected to come despite the recent economic downturn and a perceived excess of capacity, causing an overall 13.8 percent decrease in carrier equipment expenditures to $41 billion in 2001. Service provider purchases are projected to decrease 10.8 percent to $36.5 billion in 2002 but the negative trend is beginning to turn, heralding positive growth in 2003.

Strong enterprise demand for bandwidth-hungry applications is driving the broadband market and reducing the current supply. Continuing a trend from 2000, the most immediate growth in carrier spending will be found in the related gear to get more out of existing fiber. New generations of optical switches and signaling gateways are able to streamline data transmission time and use less power, thus, making fiber more affordable and easier to upgrade.

"The demand side is strong, and businesses are still buying to increase their operational efficiency. Apart from increased fiber in the public network, technology breakthroughs in LANs are driving growth in fiber for the enterprise," said TIA VP Mary Bradshaw. "Together, public and enterprise network adoption of fiber will reverse course this year, and by 2003 will enter a period of sustained high-single to double-digit growth through 2005."

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