2Q20 Transport Customer Markets Report

Cignal AI has issued the 2Q20 Transport Customer Markets Report. The report tracks optical and packet transport hardware purchases across four global regions from Incumbent, Wholesale, Cloud & Colo, Cable MSO & Broadband, Enterprise & Government network operators, details vendor market share, and provides a forecast for equipment sales to each operator type.

Highlights this quarter:

  • Last quarter’s vendor predictions of unrealized Q1 sales appearing in Q2 did not materialize as expected, and CapEx is largely exhausted for the year. Transport equipment sales, particularly to traditional telcos, consequently underperformed Cignal AI’s Q2 forecast and are expected to be flat to down for the second half of the year.
  • Cloud & Colo optical spending in North America cooled, dropping to less than 5% YoY growth this quarter. Ciena maintained its optical Cloud & Colo market-share leadership, although Huawei gained a few points of share derived from its success in China.
  • APAC had unexpectedly strong Cloud & Colo growth this quarter, led by Huawei’s sales to Chinese cloud operators. Huawei’s optical Cloud & Colo sales were up more than 50% YoY.
  • Enterprise & Government optical spending was much stronger than expected. Growth is not expected to continue into the second half of the year, with sales flat to down in the third and fourth quarters.
  • Huawei gained market share in packet transport sales to Traditional Telco operators and claimed the top spot in EMEA from Nokia this quarter.

Optical Customer Market Report subscribers can now download the latest Excel file and register for a Live Presentation on September 24, 2020.

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