“The fibre optics market is growing, but how do the financials stack up?”
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Global Optical Network Equipment Hits US$28 billion by 2024
usage of online gaming, chatting, video surfing, and online shopping. Similarly, companies providing these services are asking for more high-speed data, as there is a on-going increase in both residential as well as business customers. ZMR doesn’t believe existing networks will be able to meet this demand. Apart from the above, factors such as emerging Terabit networking and increase in cloud storage space by many companies will drive the growth of the market. The high demand for interconnecting datacentres and adoption and deployment of 5G infrastructure are also primary growth drivers. However, the high cost of installing optical networking equipment for operators is something of a brake on the sector, especially for smaller concerns. Interestingly, ZMR believes that that 5G-based Fixed Wireless Access will be best suited for deployment in urban areas as these areas are densely populated, and the initial installation cost of FWA technology will be lower by up to 40% compared to FTTP.
According to a new report by Zion Market Research (ZMR), the global optical network equipment market will reach in excess of US$28 billion by 2024. ZMR reckons that market was worth around US$16.128 billion in 2017 and will grow at a CAGR of 8.68% between 2018 and 2024. The report includes forecasts and analysis for the optical network equipment market on a global and regional level. It provides historic data covering 2015 to 2017, along with a forecast from 2017 to 2024 based on revenue. The study includes drivers and restraints for the optical network equipment market, along with the impact they have on the demand over the forecast period. To understand the competitive landscape in the market, an analysis of Porter’s Five Forces model for
the market has also been included. ZMR segments the market based on application, technology, and regions. By application type, the market is divided into FTTH and FTTB. On the basis of technology, the market is segmented into Asynchronous Transfer Mode PON, Broadband PON, Gigabit PON, and Ethernet PON. The regional segmentation includes the current and forecast demand for North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. The research company notes that, presently, major companies in the optical network equipment market are focusing on developments in emerging technologies, as there is a continuous increase in the use of mobile smartphones, laptops, and PCs. This gives rise to a tremendous increase in the
Equinix aids LATAM fibre connections with US$60m Miami data centre expansion
project is set for February 2019, where an extra 4MW of power will be delivered to the site. According to the Global
(NAP) of the Americas. The US$60m expansion follows Equinix acquiring the 750,000 facility as part of its capture of 29 Verizon data centres in 2017. A first phase of the upgrade has now been completed and the completion of the
Equinix has extended its MI1 data centre in Miami, billed as the primary US interconnection point from North America to the LATAM and Caribbean (LA&C) markets. The facility is otherwise known as the Network Access Point
the total capacity provisioned to privately and directly exchange traffic at distributed IT exchange points - was expected to grow at a rate of 62% year-over-year between 2016 and 2020. Which is the main reason the data centre is being expanded.
Interconnection Index, published annually by
Equinix, the LATAM region’s interconnection bandwidth -
Huawei has deployed an optical transport network (OTN) using DWDM for Austrian Federal Railways (ÖBB). DWDM technology enables 100Gbps performance and the ability to expand broadband network systems efficiently. Customised for ÖBB, Huawei’s DWDM OTN products are now deployed at multiple sites across Austria and Germany. ÖBB’s 10G legacy network suffered from inadequate device performance because more than 80 percent of its Austrian Federal Railways taps Huawei for DWDW OTN
up with the growing demand for rail services throughout Austria. The new network uses its Multi-Service OTN (MS-OTN) function to support OTNs, virtual circuits and packet cross- connections, thereby enabling end-to- end management for all types of services and resulting in a future-proof intelligent network. In the new coherent system, the bandwidth has been increased up to 100 Gbps per wavelength, or up to 8 Tbps over each pair of fibres. Future upgrades will expand the bandwidth from 100G to 400G, 1T, and 2T channels per wavelength. The Fiber Doctor and Optical Doctor functions apply automatic commissioning and optimisation to minimise the operations and maintenance costs that keep the network in an optimal state. Protection mechanisms at the electrical and optical layers allow fast switching and eliminate service interruption. Thanks to these inherent attributes, DWDM technologies can be used to carry crucial safety- related data.
network bandwidth was already in use. New requirements for wireless train control, centralised dispatch, and automatic operations could not be met due to a lack of adequate bandwidth. Intelligent offices and modern production systems needed to be connected to a unified high- speed backbone carrier network to allow communications and dispatch. Additionally, railway service characteristics require network communication systems to be absolutely secure and reliable. With a 10% to 15% percent annual growth rate for rail transportation, ÖBB plans to extend its rail network to reach 90% of the country, and is preparing to increase the available bandwidth resources on local and backbone networks. All current and future stations will be equipped with high-definition video surveillance systems, intelligent office systems and other digital railway information systems. A new high-speed backbone network was required to keep
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| ISSUE 14 | Q3 2018
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