Welcome to TRANSMIT, our monthly newsletter on important news and trends in the optical industry, our latest research, and noteworthy upcoming events.

Optical Hardware Flourishes in 2Q19

The 2Q19 Optical Hardware Report is now available to clients, including Excel, .PDF, and full interactive data dashboards. The report also includes vendor summaries for:

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Live Report Presentation

September 5th 11 AM ET
Optical hardware spending grew in every region and for every business segment during 2Q19. Huawei retained top market share worldwide and held steady despite a slowdown in China and increasing competitive and political pressures.

This quarter marked a turnaround for CALA, reversing multiple quarters of decline with a YoY surge of 30%. EMEA also grew with expansion across all product segments. Overall growth in North America was minor and would have been negative again if not for an enormous SLTE revenue increase this quarter. Finally, the rapid expansion in Japan for the past few quarters settled down to a more moderate pace with Ciena, NEC, and Huawei as the prime beneficiaries.
CALA Optical Hardware Sales and Growth Rate
Additional key findings in the 2Q19 Optical Hardware Report:

  • WDM Long Haul Spending Up– Long haul spending recovered in every region except Japan, as compact modular equipment and new high-speed coherent optics impact investments.
  • WDM Metro Declines in North America But Grows in All Other Regions– Factors contributing to the NA decline are the lower price per bit of new high-speed optics and competing priorities like the 5G rollout.
  • SONET/SDH Hangs On– Growth in APAC and EMEA offset SONET/SDH’s ongoing decline in NA. This growth comes from expansions and upgrades to existing networks; there are no new builds.
  • China’s Growth Slows— Growth in China appears dramatic due to the ZTE shutdown and the absence of revenue a year ago. Excluding ZTE’s results, growth slowed.
  • Coherent Optic Shipments Tracking to Reach Nearly 1 Million 100G Equivalent Ports in 2019– This represents a 40% increase in bandwidth over 2018.

Free Download - OIF Presentation

This July, Andrew Schmitt gave a presentation at the Optical Internetworking Forum (OIF) discussing the disruptive opportunity of 400ZR and ZR+ pluggable coherent technologies.

What's Behind the North American Optical Hardware Spending Decline

There is a spending dichotomy in North America right now.
  • Overall spending on optical hardware has declined for four years, but spending by cloud & colo operators has grown significantly during that same time period.
  • Cloud & colo spending was up over 40% last year while traditional telco (incumbent + wholesale) declined by more than 20%.
  • Cloud & colo spending now constitutes over 30% of the North American market and continues to gain share.

Set Up a Meeting at ECOC

Andrew Schmitt is available for meetings during ECOC September 23-25 — please contact us if you would like to arrange a time.

News and Events

Ekinops completes the acquisition of OTN technology from Padtec
Puts Ekinops in a good position with smaller operators in EMEA who are using Huawei’s OTN family and are looking for a second source.

Superloop Deploys the Cisco NCS 1004
The first commercial announcement of a deployment based on Acacia’s AC1200 goes to Cisco and it’s for a submarine cable, not datacenter interconnect.
July 30-31, 2019
OIF Meeting
Montreal, Canada

Sept. 27, 2019
Nokia AON
Anaheim, CA

Sept. 23-25, 2019
Dublin, Ireland

Sept. 27, 2019
3rd Annual Client Oktoberfest Party
Munich, Germany

October 8-10, 2019
Ciena Vectors
Ottawa, Canada