Market trends for optical amplifiers

Content

• EXECUTIVE SUMMARY
  • In a nutshell
  • Ovum view
  • Demand for amplification continues as does demand for lower cost
  • Key messages
  • Market led by strong suppliers
  • Demand complicated by array of options, favors incumbent suppliers
  • Waiting, watching, preparing for the amplifier market game-changer
  • Strong demand for optical amplifiers
  • Traffic grows in network core
  • Metro moving to 50GHz
  • Agility as a major amplifier requirement
  • 40 and 100Gbps raise demand for single-channel amplifiers
  • 100Gbps Ethernet ready to come out of the gates
  • 100Gbps DWDM
  • 40 and 100Gbps DWDM on a new transmission fiber (i.e., fiber carrying 40 or 100Gbps solely)
  • Amplification in access networks
  • Amplification in cable TV
  • Amplification for radio frequency over fiber (RFOG)
• WDM PON
  • 10Gbps PON
  • Optical amplifier opportunity summary
  • Optical amplifier component supplier review
  • Strength goes to suppliers who supply the pump lasers
  • Controlling functional modules also offer competitive advantages
  • Dispersion compensators for mid-stage access
  • ROADMs for mid-stage access
  • Raman amplifiers have a role in this market
  • Cable TV and FTTx amplifier
  • System vendors challenge optical amplifier suppliers
  • Strong pricing pressures
  • Strong demand for all different kinds of amplifiers
  • Optical amplifier supplier analysis
  • Incumbents dominate optical amplifier market
  • Optical amplifier opportunity
  • Ovum finds too many suppliers
  • Market led by Oclaro (formerly Bookham and Avanex), JDSU, and Furukawa
  • Cost reduction strategies
  • Stagnant optical amplifier suppliers
  • Little new competition
  • Raising barrier to entry
  • While pump lasers present high barrier to entry, their role has changed
  • Diverse amplifiers also challenge suppliers
  • Consolidation of the behemoth incumbents raises the bar ??