Although long-haul fiber optic communications has a large inventory of dark fiber that will slow growth until 2002, the metropolitan market is ripe for growth, according to market analysis from Cahners In-Stat Group.

Senior Analyst Richard Cunningham predicted that 2001 will see a 12 percent drop in the long-haul dense wavelength division multiplexing (DWDM) market this year, with recovery in 2002 and beyond.

In the metro market, on the other hand, little dark fiber exists, and that area is a bottleneck for optical network deployment. This will produce vigorous growth, somewhat overshadowing the decline in long-haul markets.
Cunningham predicts an overall increase in DWDM sales this year from $7.8 billion in 2000 to $8.6 billion. He predicts that fast growth will resume in 2002, with the market reaching $21 billion by 2005.

Details of the report, "DWDM Systems: Market Power Encounters Limited Traction," are available through www.instat.com.