OXC Market Promise Overestimated, Analysis Says

SAN ANTONIO, Nov. 21 -- As telecommunications carriers continue to build next-generation infrastructure to accommodate increased network traffic and higher-bandwidth applications, they will increasingly turn to optical cross connect (OXC) equipment, according to a new Frost & Sullivan analysis. The analysis said total revenues for the world OXC market reached $336 million in 2001 and forecasts robust growth beyond $6 billion by 2006--a more conservative estimate than what some analysts predict.

"The promised benefits of optical cross connects have been hyped-up and overestimated during the last several years," says Frost & Sullivan Program Leader Mark Storm. "Previous forecast estimates will not be realized, despite the true growth that will occur over the next six years."

The OXC market will grow at the expense of other market segments, he added.

"Providers are moving toward next-generation systems designed for multiwavelength networks, including optical cross connects, dense wavelength division multiplexing and data-aware SONET and SDH equipment categories," said Storm. "To win contracts, optical cross connect providers need to identify which of the eight distinct types of design strategies network operators will purchase, and which they will not."