Infinera

After years of anticipation, 400G pluggable digital coherent optics (DCO) will finally achieve general availability and initial deployment in 2021.

400Gbps+ port shipments doubled YoY, 400ZR ports started to ship, and compact modular sales significantly outperformed the overall optical hardware market this quarter.

Several vendors are shipping 800Gbps capable coherent optical solutions, and now the industry must consider the next steps in development.

Cignal AI continues to track announcements of 5th generation (800Gbps-capable, 90+ GBaud) optical trials and deployments.

Optical spending by North American Traditional Telco carriers declined steeply YoY compared to a heavily frontloaded 1Q20, but show signs of longer term recovery. Cloud & Colo optical spending worldwide slowed as NA spending stalled in 2020 and APAC is just beginning to take off.

First quarter optical spending was down compared to the Covid-impacted 1Q20. Packet transport sales, which suffered a year ago from operational issues, increased sharply.

Infinera provided new details on ICE6, XR Optics, Groove Compact Modular, and opportunities to displace Huawei.

ICE6 is shipping to customers, while 600Gbps port shipments grow and support for 400Gbps pluggable optics is added to existing systems.

Compact Modular sales (and hence disaggregation) have historically lagged in APAC versus the rest of the world, so APAC’s sudden and extraordinary growth over the past few quarters means that something has changed and deserves a closer look.

4Q20 Compact Modular sales significantly outperformed the overall optical market, as APAC sales more than doubled and surpassed EMEA sales for the first time. 400ZR forecasts for 2022 and beyond were increased based on growing operator interest.

North American Traditional Telco spending on optical and packet hardware declined significantly in the 4th quarter, due to a dramatic reshuffling of capex spurred by the pandemic during the first half of 2020. Meanwhile, APAC Cloud & Colo spending exploded. Long term, hardware sales in all markets are predicted to return to growth in the second half of 2021.

North American optical and packet transport spending plummeted in North America as Tier 1s concentrated COVID-related capex in the first half of the year.

Infinera originally expected its ICE6 technology to enter the market in the second half of 2020. The company’s current guidance now indicates a 2H21 arrival. Infinera reports a strong order pipeline but has not specified exactly when the first ICE6 will ship for revenue.

This report provides a summary of Cignal AI’s current outlook for the year. Creating forecasts for 2020 was uniquely challenging and forecasting the expected return to normal by the end of 2021 is also very complex.

Compact modular sales grew much faster than the optical market overall, with significant growth in APAC this quarter. 400ZR and ZR+ modules began sampling with several hundred modules shipped for evaluation.

North America transport hardware spending growth shifted dramatically this quarter from Cloud & Colo operators to Incumbents. APAC Cloud & Colo optical sales grew again.

Third quarter results were better than forecast, especially in EMEA where both optical and packet hardware spending increased. North America spending declined while China spending was flat and Japan spending growth continued unabated.

Infinera’s optical and packet sales grew in Q3 and the company set expectations for continued growth in Q4, running counter to earlier industry forecasts of a slowdown in the second half.

Explore a New Era of open Transport Networking. Hear Infinera & Telefonica’s Perspective on defining and delivering open optical networking.

The diverse requirements of 5G require both the radios and the network supporting the radios to be updated. This report covers advances in 5G packet fronthaul and includes an overview of existing vendor solutions.