According to a report by Heavy Reading, the upcoming rise in networked video traffic (IPTV) will have a dramatic impact on the market for reconfigurable optical add/drop multiplexing (ROADM) equipment over the next five years. Sales, however, will be slow to start since ROADM equipment is far more expensive than traditional WDM nodes and most service providers say that they are sufficient for the short-term. Heavy says the market for ROADM equipment will grow by more than 40 percent in 2006 from $187 million in 2005, and will grow by a further 32 percent in 2007. The chief analyst behind the report, Scott Clavenna adds one caveat to the bullish prediction: "If telco IPTV buildouts get scrapped or postponed, the ROADM market will clearly suffer," he warns. "Given the current momentum of IPTV, such moves are unlikely during the next two years, but beyond 2008 this is something to watch."
For more on the ROADM report from Heavy Reading:
- see this article in Light Reading