Optical Network Equipment Spending in Europe Up 8% YoY

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Global optical network hardware revenue (WDM and SONET/SDH) grew 22 percent in the second quarter of the year from the previous quarter, but was flat from a year ago, according to market research firm IHS Inc. Europe is the only major world region that posted positive year-over-year growth in 2Q15, up 8 percent.

“With three consecutive quarters of good results, Europe is signaling a reversal of the terrible optical spending that we’ve seen in the region over the last five years,” said Andrew Schmitt, research director for carrier transport networking at IHS. “This strength is concentrated in Alcatel-Lucent, Ciena and Infinera. 

“When taking into account currency effects, the results are even stronger — adjusted for exchange rate, optical spending in Europe saw a 30 percent year-over-year growth rate in the second quarter when measured in euros.”

More optical market highlights

  • On a rolling 4-quarter basis, WDM equipment spending further extended 3 years of consecutive growth
  • Spending on WDM equipment grew 23 percent in 2Q15 from 1Q15, and was up 6 percent from 2Q14
  • WDM gear comprised 86 percent of total worldwide optical hardware revenue in Q2
  • Spending on optical network hardware in Asia Pacific surged 36% in 2Q15 from the previous quarter, but is down 2% from a year ago
  • Alcatel-Lucent announced an intention to merge with Nokia, an action IHS does
    not expect to have any transformative effects on ALU’s optical business or the competitive landscape



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