The optical networking market is undergoing rapid changes to accommodate dramatic increases in network traffic and demand for lower bandwidth costs. But the industry is also rapidly yielding revenues to next-generation systems. After producing revenues of $15.5 billion in 2000, this market will decline below $9.4 billion by 2005, says new research from Frost & Sullivan.
"More than 50 percent of all optical network spending went toward traditional optical equipment in 2000," says Mark Storm, a Frost & Sullivan program leader. "The trend is clear that service providers will transition their purchasing patterns toward next-generation equipment as they migrate toward higher capacity, multi-wavelength, intelligent optical networking solutions."
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