Demand for dense wave division multiplexing technology (DWDM) is ready to soar thanks to the Internet boom and global deregulation of the telecoms market.
That is the key finding of a report about the worldwide market for the DWDM systems. The survey, carried out by telecoms research firm Frost and Sullivan, found the market was worth $1.6 billion (£987 million) in 1998 - a figure that is expected to grow to $2.2 billion (£1.36 billion) by the end of this year.
DWDM technology allows carriers to meet demand for extra bandwidth by increasing network capacity without installing additional fibre optics.
Four versions of the technology are available: eight-channel, 16-channel, 32-channel and ultra dense wave length division multiplexing.
Frost and Sullivan predict the market will continue to be dominated by a handful of large suppliers.
Nortel, Lucent, Ciena and Nortel are the top three players; the latter displacing Pirelli from its 1996 position at the top of the tree, according to the report.
Erica Henkel, a Frost and Sullivan analyst, said the DWDM market would become increasingly competitive as vendors jostled the for prime position.
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