Optical Network Equipment Market
Lightpath to deploy 800Gb/sec links using Ciena’s WaveLogic 5 Extreme technology
Fiber-optic network services provider Lightpath has rolled out 800-Gbps capabilities via implementation of Ciena’s WaveLogic 5 Extreme technology. The company also will deploy Ciena’s Waveserver Ai platform, which will pair with a flexible-grid optical transport network based on Ciena’s 6500 RLS platforms.
The Lightpath Network consists of over 18,000 route miles of fiber providing connectivity to over 12,000 service locations. Lightpath provides a variety of connectivity and business services to customers in the metro New York area, including financial services firms (e.g. “Lightpath intros 100-Gbps optical transport service” and “Lightpath raises New York metro fiber-optic network footprint”). Using Ciena’s coherent optical solution, Lightpath’s network becomes more adaptive, allowing it to respond quickly to ever-changing bandwidth demands while maximizing operational efficiencies, providing customers with more reliable, high-speed services.
The enhanced optical transport technology will increase fiber network flexibility and efficiency as well as support Physical Layer encryption for data security. Cable MSO Altice USA owns a controlling interest in the company (see “Altice USA to sell almost 50% of Lightpath fiber enterprise business to Morgan Stanley Infrastructure Partners”).
“In order for our customers to execute on their own digital innovations, we need to provide them with fast and reliable connectivity. With Ciena’s solutions, our customers in the New York and Boston metro areas will now experience next-level digital services with high bandwidth and minimal latency,” commented Phil Olivero, CTO at Lightpath.
“As users consume more digital content, it is crucial for service providers to ensure their network can adapt to these surging and often unpredictable demands. With Ciena’s technology, Lightpath is adding scalability to meet bandwidth demands and also gaining real-time visibility into the performance of its network,” added Kevin Sheehan, CTO, Americas, for Ciena.
WaveLogic 5 Extreme is now available in three different product implementations to meet network architecture preferences: 6500 Packet-Optical Platform, Waveserver 5 compact interconnect platform, and the WaveLogic 5 Extreme 800G transceiver module
The WaveLogic 5 Extreme chip is 12mm x 16mm CMOS device. Here are some of its remarkable features:
- It is the industry’s first commercial 7nm CMOS device for optical networks.
- Based on 7nm FinFET technology, it includes 3km of wiring and contains 800 Trillion operations per second, which is about as much horsepower as 400,000 laptops!
- Some of the capabilities that are packed into the ASIC include nonlinear probabilistic constellation shaping, throughput-optimized forward error correction, frequency division multiplexing, and encryption.
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About Ciena
Ciena is a networking systems, services and software company. We provide solutions that help our customers create the Adaptive Network™ n response to the constantly changing demands of their end-users. By delivering best-in-class networking technology through high-touch consultative relationships, we build the world’s most agile networks with automation, openness and scale. For updates on Ciena, follow us on Twitter @Ciena, LinkedIn, the Ciena Insights blog, or visit www.ciena.com.
About Lightpath
Lightpath is revolutionizing how customers connect to their digital destinations by combining our next-generation network with our next-generation customer service. Lightpath’s advanced fiber-optic network offers a comprehensive portfolio of custom-engineered connectivity solutions with unparalleled performance, reliability, and security. Our consultative customer service means we work with you to design, deliver, and support the solution for your unique needs, faster and more easily than ever before. For over 30 years, thousands of enterprises, governments, and educators have trusted Lightpath to power their organization’s innovation. Altice USA (NYSE: ATUS) owns a 50.01% controlling interest in Lightpath and Morgan Stanley Infrastructure Partners (MSIP) owns 49.99% of the Company.
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2021 Optical Fiber Conference (OFC) Highlights and Links to Videos
The premier event in optical telecom—the 2021 Optical Fiber Communication Conference and Exhibition (OFC) concluded last week. The virtual event drew over 6,500 registrants from 83 countries.
“OFC 2021 saw technology announcements and technical presentations spanning the optical communications ecosystem, including advancements in optoelectronic devices, packaging and digital signal processing that are all rapidly evolving to achieve 800G and beyond, as well as those in architectures and algorithms towards more intelligent optical networking,” said Jun-ichi Kani, OFC General Chair, NTT, Japan. “OFC is the only event where attendees can access the full spectrum of trends shaping the industry and the way we connect across the globe.”
Speakers presented breakthroughs in many areas, including 400/ZR+, 800G, co-packaged optics, embedded optics, next-gen optical access, silicon photonics, space-division multiplexing, data center networks, automation and intelligence in networks and more. Sessions on quantum science and technologies, sensor applications and free space optics appealed to a large audience and enriched the OFC experience. Recorded sessions are available to registrants as on-demand content for 60 days following the close of the event.
“OFC is the go-to event for the optics industry,” said Jimmy Yu, vice president, Dell’Oro Group. “From the thought-provoking panel discussions to the product announcements, OFC has always been the place where I learn about emerging technologies.”
Technology experts from global leaders II-VI, Broadcom, Ciena, Cisco, Corning, Innolight, Intel, Juniper Networks, Lumentum, NeoPhotonics, Nokia and Ribbon discussed developments in hardware and software-based networking solutions in daily briefings with leading analysts, Sterling Perrin, Heavy Reading; Ian Redpath, OMDIA; Andrew Schmitt, Cignal AI; Jimmy Yu, Dell’Oro Group and Vladimir Kozlov, LightCounting. The videos can be viewed here.
The TIP sub-group said multi-vendor integration and services operations “were achieved through open standard models and APIs supported by the Optical SDN Controller, including Transport-API, OpenConfig and Open REST.”
“This proof of concept is an important milestone in the journey to fully open and disaggregated optical networking. It offers new levels of visibility and a way to manage the entire multi-vendor environment,” commented Christoph Glingener, CTO at ADVA.
Technology Showcases from 3M, AIM Photonics, Corning, EFFECT Photonics, Infinera, Jabil, Juniper Networks, Keysight Technologies, Lumentum, Luna Innovations, Murata, Nokia, Pi, Renesas, Ribbon, Samtec, Sicoya, Synopsys, Tektronix, Telescent and Xilinx gave deep dives into their cutting-edge products.
OFC 2021 exhibitor news announcements are posted to the OFC Newsroom.
Innovations in Optics
Leading researchers from around the world presented technical peer-reviewed papers, including:
- Trans-Atlantic Real-Time Field Trial Using Super-Gaussian Constellation-Shaping to Enable 30 Tb/s+ Capacity — A team of researchers from Infinera Corporation, USA and Facebook demonstrated a record-breaking transatlantic transmission across MAREA.
- A Latency-Aware Real-Time Video Surveillance Demo: Network Slicing for Improving Public Safety — Researchers presented a latency-aware optical metro network having sophisticated monitoring and data analytics capabilities and discussed the network architecture and enabling technologies, as well as a video surveillance case of the system.
- Demonstration of 100Gbit/s Real-Time Ultra High Definition Video Transmission Over Free Space Optical Communication Links — A team of researchers discussed how they achieved real-time FSO transmission of an ultrahigh-definition video stream between two buildings in Beijing.
- 224-Gb/s PAM4 Uncooled Operation of Lumped-electrode EA-DFB Lasers with 2-km Transmission for 800GbE Application — Researchers at Lumentum showed how they developed an optical solution that uses four 200 Gbps wavelength lanes to reach 800 GbE.
Post Deadline Papers looked to the future with developments in high-speed individual LEDs, modulated lasers, record low loss in hollow core fibers for applications in power delivery and sensing and other topic areas important to industry.
Analysts also revealed their recent findings around the sector to coincide with the event. For instance, Cignal AI suggested there have been strong gains in switching and routing spending by operators in the first quarter of the year, but these were offset by the slightly weaker deployment of optical transport gear.
Scott Wilkinson, lead analyst for transport hardware at Cignal AI, noted that “Chinese spending on optical hardware has plateaued as major 5G network builds mature and new projects have not been initiated.” He added that the country’s “extraordinary growth during 2015 to 2018 could not continue long term due to the impracticality of expanding upon the enormous amounts that had been spent in the region.”
In general, analysts reported subdued activity by Chinese operators across all product categories after last year’s strong growth, while most other territories showed a rebound this quarter.
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OFC 2022 will be held 06 – 10 March at the San Diego Convention Center, San Diego, CA.
For more information contact: [email protected]
References:
https://www.ofcconference.org/en-us/home/
https://www.eetindia.co.in/ofc-highlights-open-optical-nets/
Dell’Oro: Optical Transport Equipment Market Stagnant in 1Q 2021; Jimmy Yu’s Take
The Optical Transport equipment market came in roughly flat with the year ago quarter in 1Q 2021, according to a new report by Dell’Oro group. The North American market was the main reason for this stagnant growth rate, offsetting all of the year-over-year growth in the other regions.
“Although the North American region was down this quarter compared to last year, it did improve from last quarter,” said Jimmy Yu, Vice President at Dell’Oro Group. “In fact, the growth quarter-over-quarter was really strong. It grew just a little over 15 percent, and we think this strength will carry forward through the remainder of the year,” added Yu.
Highlights from the 1Q 2021 Quarterly Report:
- The top manufacturers by revenue share were Huawei, Ciena, ZTE, and Nokia. Among the top four, Nokia gained the most revenue share over the year ago quarter.
- Three vendors (Ciena, Huawei, and Infinera) are actively shipping 800 Gbps-capable coherent line cards. However, due to the company’s early entry, Ciena holds the lion share of shipment volume.
- Communication service providers comprised 71 percent of WDM market revenue in the quarter.
- The year-over-year revenue growth in each region was as follows:
| Regions | Growth Rate in 1Q 2021 |
| North America | -15% |
| Europe, Middle East and Africa | 10% |
| Asia Pacific | 0% |
| Caribbean and Latin America | 15% |
In an email to this author, Jimmy Yu provided additional information on the optical transport market:
For coherent 400 Gbps, shipment volumes have been growing quite rapidly over the past year. Ciena was first to market with a 400 Gbps coherent solution and was followed by vendors introducing 600 Gbps-capable coherent solutions that can operate at 400 Gbps. The primary buyers of this wavelength speed were the Internet Content Providers (ICPs), often referred to as hyperscale. We think 400 Gbps wavelength shipments will enter the broader market this year (2021) and be a mainstream deployment speed in 2022. So, most if not all vendors have a 400 Gbps offering at this point.
800 Gbps transport has just started with Ciena entering the market first with the WaveLogic 5 based line cards. Other vendors that have a 800 Gbps-capable line card include Huawei and Infinera. (We are expecting only three vendors to have this type of line card in the market.) It is still early days for 800 Gbps, but this technology will be an important driver for delivering longer un-regenerated spans of 400 Gbps and 600 Gbps wavelengths for long haul and subsea applications.
Yes, 5G should drive more optical backhaul and fronthaul. However, with so much optical capacity put in place for 4G, we think the timing for demand generation for 5G backhaul is later. That is, we need 5G roll out to commence outside current 4g coverage areas and for operators to begin 5G densification that will require more fronthaul and backhaul.
The Dell’Oro Group Optical Transport Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, unit shipments (by speed including 100 Gbps, 200 Gbps, 400 Gbps, and 800 Gbps). The report tracks DWDM long haul, WDM metro, multiservice multiplexers (SONET/SDH), optical switch, optical packet platforms, data center interconnect (metro and long haul), and disaggregated WDM. To purchase this report, please contact us at [email protected].
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit https://www.delloro.com.
References:
https://www.delloro.com/news/optical-transport-equipment-market-growth-stagnant-in-1q-2021/
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A different Optical Transport Network report from Market Quest states:
The global Optical Transport Network (OTN) equipment market size is expected to gain market growth in the forecast period of 2020 to 2025, with a CAGR of 4.1%% in the forecast period of 2020 to 2025 and will expected to reach USD 18270 million by 2025, from USD 15550 million in 2019.
Coherent WDM shipments surged in 4Q20 with Ciena in the lead; 400 ZR explained
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Note 1. What is 400ZR?
Aimed predominantly at short-reach, single-span fiber optic links for Data Center Interconnect (DCI), 400ZR is an interoperable networking Implementation Agreement (IA) released by the OIF (Optical Internetworking Forum) in March 2020. It defines a footprint-optimized solution for transporting 400Gb Ethernet over DCI (Data Center Interconnect) links targeting a minimum of 80 km. Enabled by advanced coherent optical technology design targeting small, pluggable form factor modules such as QSFP-DD and OSFP, 400ZR supports high capacity data transport, matched to 400GE switch port market introduction.
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Comments on 400ZR:
The main driver for 400ZR were the cloud giants (AKA hyperscalers) who needed to upgrade their DCI links to 400G b/sec to carry ever increasing data and video traffic. Yet they were very slow to do so, despite IEEE 802.3bs 200/400G b/sec Ethernet standard and 40G b/sec ITU-T OTN recommendations (Optical Physical Interfaces G.959.1, G.695, G.698.x) in place for many years. Up until last year, Ciena was the only optical networking equipment vendor that offered production ready 400G b/sec DWDM gear.
Light Reading’s Sterling Perrin wrote: “Although 400ZR work within the OIF began with hyperscalers, there is already evidence that the architecture also appeals to CSPs (communications service providers).”
“Sweden’s Telia Carrier, Ethiopian internet service provider WebSprix and Windstream in the US have all announced plans to commercial deploy routed optical networks using 400G pluggable coherent optics beginning this year.”
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References:
https://cignal.ai/free-articles/
https://www.ciena.com/insights/what-is/What-is-400ZR.html
https://www.itu.int/en/ITU-T/studygroups/2017-2020/15/Documents/OFC2018-1-SG15-Hot-topics-OTN.pdf
https://www.lightreading.com/opticalip/routing/an-ip-over-dwdm-renaissance-at-400g/a/d-id/768513
North American Cloud and Traditional Telco CapEx Drops in 4th Quarter 2020
Subhead: Exceptional 4Q Cloud & Colo Operator Spending in APAC
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More Key Findings from the 4Q20 Transport Customer Markets Report:
Separately, Cignal AI said on March 16th that Ciena’s revenue decline this quarter was steeper than forecast, but the company is poised to grow revenues based on the success of its WaveLogic 5e fifth generation coherent technology. On March 2nd, Cignal AI said that 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. About the Transport Customer Markets Report:
About Cignal AI:
References:https://cignal.ai/opteq-hw-dashboard/https://cignal.ai/free-articles/
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Cignal AI: Network Operator Spending on Optical and Packet Transport Gear in North America
Expenditures by North American cloud and colocation operators on optical and packet transport equipment declined 20 percent year over year in the third quarter of 2020 (3Q20), while incumbent operator spending increased 2 percent, according to the 3Q20 Transport Customer Markets Report from market research firm Cignal AI. It’s quite important that incumbent operator spending grew while cloud and colocation operator spending declined during 2020.
“Equipment suppliers to cloud operators report that sales in the third quarter were depressed because service providers absorbed capacity on networks that were built during the first half of 2020,” said Scott Wilkinson, lead analyst at Cignal AI. “Both incumbent and cloud operators, especially in North America, spent significantly more of their annual budget than typical in the first half of the year.”
| More Key Findings from the 3Q20 Transport Customer Markets Report |
- After uncharacteristically strong growth in 2Q20, sales to cloud and colocation operators in Asia Pacific (APAC) rose dramatically again in the third quarter
- Despite a year-over-year decline in sales, Ciena maintained its worldwide market share leadership in sales to cloud and colocation operators in 3Q20
- The fourth quarter is expected to be challenging for sales outside APAC, with traditional telco and cloud and colocation purchases anticipated to wane worldwide
| About the Transport Customer Markets Report |
| The Cignal AI Transport Customer Markets Report tracks global optical and packet transport equipment spending by end-customer market type, including incumbent, wholesale, cloud and colocation, cable MSO and broadband, enterprise and government network operators. The report includes historical market share and market size and five-year market size forecasts. Vendors examined: Adtran, ADVA, Alaxala, Ciena, Cisco, Ekinops, Ericsson, Fiberhome, Fujitsu, Fujitsu NC, Huawei, Infinera, Juniper Networks, Mitsubishi Electric, NEC, Nokia, Padtec, RAD, Tejas Networks, Ribbon Communications, Telco Systems, Xtera and ZTE. |
| About Cignal AI |
Cignal AI provides active and insightful market research for the networking component and equipment market and its end customers. Our work blends expertise from various disciplines to create a uniquely informed perspective on the evolution of networking communications.
…………………………………………………………………………………………………………………………………………………………………………………….. Some of the Optical Transport Equipment vendors are: Ciena, Cisco, ADVA Optical networking, Aliathon Technology, ECI Telecom, Ericsson, Fujitsu, Alcatel-Lucent, Furukawa Electric / OFS Russia, Huawei Technologies, Micron Optics
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Cignal AI: COVID-19 Continued to Pressure Optical Network Supply Chain in Q2-2020
Delayed order fulfillment due to COVID supply chain impact earlier this year was expected to spur sales growth in 2Q20, but instead the results were mixed, according to the most recent Transport Hardware Report from research firm Cignal AI. Forecasted growth in Q2 from sales pushed out from Q1 did not materialize, and network operators indicated that annual CapEx would not increase (see chart below). As a result, spending on optical and switching/routing equipment will be flat to down in the second half of the year.
“COVID operational issues slowed deliveries and revenue recognition in the second quarter, although optical hardware sales increased in NA and EMEA due to high demand for inventory,” stated Cignal AI Lead Analyst Scott Wilkinson. “Growth is not expected to continue in the second half as carriers have pulled forward annual CapEx spending and networks are now able to cope with COVID-related surges.”
Some regions did shine in 2Q20. North American optical sales were up sharply YoY in both metro and long haul WDM, though the second half of the year is expected to be flat or down. Japan’s extraordinary growth in optical sales expanded to packet sales this quarter, with sales to both market segments up substantially YoY.
Additional 2Q20 Transport Hardware Report Findings:
- In addition to COVID woes, RoAPAC continues to suffer from the CapEx limitations in India, and optical sales declined -20% for the quarter while packet sales also declined.
- China has overcome its COVID related issues and returned to optical and packet spending growth this quarter, with increasing growth forecasted for Q3.
- EMEA optical spending increased YoY but was weighed down by weak Nokia sales. Nokia predicts that Q3 sales increases will offset Q2 declines.
Real-Time Market Data:
Cignal AI’s Transport Hardware Dashboardis available to clients of the Transport Hardware Report and provides up-to-date market data, including individual vendors’ results as they are released. Users can manipulate variables online and see information in a variety of useful ways, as well as download Excel files with up-to-date snapshots of market reporting.
Contact: sales@@cignal.ai
References:
https://cignal.ai/2020/08/transport-hardware-misses-expected-bounce-back-in-2q20/
Addendum:
According to Industry Research, the global Optical Transport Network (OTN) Equipment (optical transport and switching) market is projected to reach USD 20360 million by 2026, from USD 15810 million in 2020, at a CAGR of 4.3% during 2021-2026.
The Optical Transport Network (OTN) Equipment market is segmented into the following categories:
- Mobile Backhaul Solutions
- Triple Play Solutions
- Business Services Solution
- Industry and Public Sector
- Others
With respect to data rates, the Optical Transport Network (OTN) Equipment market is segmented into three categories:
- < 10G
- 10G-100G
- 100-400G
https://www.industryresearch.co/global-optical-transport-network-otn-equipment-market-16157288
Windstream Wholesale and Infinera Complete Successful Trial of LR8-Based 400GbE Client-Side Services
“Our customers’ bandwidth requirements are growing rapidly, and Windstream is increasing network capacity to meet this demand,” said Buddy Bayer, chief network officer at Windstream. “Infinera’s GX G30 Compact Modular Platform provides an ultra-efficient transport solution enabling us to offer 400GbE services to support our customers’ high-bandwidth needs. The use of LR8 clients with a single mode fiber interface and a 10-kilometer reach provides an extremely cost-effective solution by enabling us to extend these services directly to our customers’ premises.”
Windstream Wholesale is currently engaging with customers for initial deployment of the end-to-end 400G Wave service. For more information on how you can bring 400G Wave services to your company, call 1-866-375-6040.
To view the Windstream network map, visit https://www.windstreamenterprise.com/wholesale/interactive-map/.
About Windstream
Windstream Holdings, Inc., a FORTUNE 500 company, is a leading provider of advanced network communications and technology solutions. Windstream provides data networking, core transport, security, unified communications and managed services to mid-market, enterprise and wholesale customers across the U.S. The company also offers broadband, entertainment and security services for consumers and small and medium-sized businesses primarily in rural areas in 18 states. Services are delivered over multiple network platforms including a nationwide IP network, our proprietary cloud core architecture and on a local and long-haul fiber network spanning approximately 150,000 miles. Additional information is available at windstream.com or https://www.windstreamenterprise.com/wholesale/. Please visit our newsroom at news.windstream.com or follow us on Twitter at @Windstream.
About Infinera
Infinera is a global supplier of innovative networking solutions that enable carriers, cloud operators, governments, and enterprises to scale network bandwidth, accelerate service innovation, and automate network operations. The Infinera end-to-end packet optical portfolio delivers industry-leading economics and performance in long-haul, submarine, data center interconnect, and metro transport applications. To learn more about Infinera, visit www.infinera.com, follow us on Twitter @Infinera, and read our latest blog posts at www.infinera.com/blog.
Windstream Media Contact
Scott Morris, 501-748-5342
[email protected]
Infinera Media Contact
Anna Vue, (916) 595-8157
[email protected]
Source: Windstream Holdings, Inc.
Reference:
Cignal AI: Optical Network Equipment Sales +25% in 4Q2019 + 650 Group
Cignal AI:
Recent optical network equipment sales in North America were quite encouraging – up more than 25% for 4Q19 and 10% for all of 2019, according to the most recent Transport Hardware Report.
“After three years of North American spending declines as operators focused capex on wireless and access, optical hardware sales in the region revived and grew at a healthy pace for 2019, while packet hardware sales remained flat,” said Scott Wilkinson, Lead Analyst at Cignal AI. “Market leaders Ciena, Infinera, and Cisco all achieved optical sales growth exceeding 25% in 2019.”
Manufacturing at Huawei in Dongguan appears to be close to resuming normal levels of operation, although installation activity underway in China is still not clear. Ciena indicated a revenue impact of $30M during an earnings call in early March. It’s unclear right now what the ultimate impact will be; time will tell. We will revisit projections in April with the hope that events will be more certain at that time.
OFC was severely impacted when almost all major exhibitors pulled out of the show as health concerns mounted. The organizers did an admirable job of salvaging the technical sessions via Zoom teleconference.
Cignal AI will deliver a wrap-up report summarizing many of the important announcements that companies intended to make during the show. Look for it in the coming weeks, and if you have important news or perspective to share – contact us!
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Separately, a newly released report by 650 Group states that the Optical Transport Network market revenues increased 5% Y/Y in 4Q19. Revenues in four of the six geographic theatres experienced year over year growth, with North America having been the most robust.
“For the full year 2019, the top five Hyperscalers experienced the most growth out of any customer segment we track and has consistently been a top-performing customer segment in recent years,” said Chris DePuy, Technology Analyst and Founder at 650 Group. “Top vendors in the market are expecting their 800 Gbps optical transport technology to contribute to revenues towards the end of this year, 2020. We expect that optical transport systems companies that ship this new technology early will be well-positioned to take on the potential substitution threat of optical modules on switches and routers in the coming years.”
The forecast section of this report has been updated to reflect changes in both demand and supply related to health fears that have emerged in 1Q20. The report also reflects quantitative Data Center Interconnect (DCI) deployment scenarios across long-haul, metro, cloud, colocation, and telecom service providers.
For more information about the report, contact:
[email protected] or www.650group.com
Cignal AI: North American Optical Sales Rebound In 2019
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Additional 4Q19 Transport Hardware Report Findings:
Transport Hardware Superdashboard:
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About the Transport Hardware Report
About Cignal AI:
Contact Cignal AI/Purchase Report:
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