Next Generation MultiService Provisioning Platforms Post Strong Growth in Asia/Pacific Excluding Japan, with PRC Leading Optical Deployment, says IDC

November 15, 2006

Singapore and Hong Kong, November 15, 2006 – MultiService Provisioning Platforms (MSPP) are the largest optical equipment segment tracked by IDC and it continues to steal share from legacy SONET/SDH multiplexers. MSPPs post a staggering 36% growth with a market value worth US$1.2 billion in 2006, accounting for more than 50% of total optical networking equipment deployment. The revenue of MSPPs will increase at a compound annual growth rate (CAGR) of 10.2% from 2006 to 2011 to reach US$1.8 billion, according to IDC's latest report Asia/Pacific Semiannual Optical Networking Equipment Tracker with 2006-2011 Forecast.

"With increased network planning, infrastructure development, and the momentum of Ethernet in metro environments, spending has been shifting significantly from legacy equipment to next-generation equipment areas with potentially decreasing capex and opex spending and increasing revenue streams," says Gina Luk, Market Analyst for IDC's Asia/Pacific Networking Research. "Even though some major carriers have to maintain legacy services for their existing customers, IDC expects a major adoption to next-generation networks, which will allow high-capacity content, such as Triple play/IPTV."

The People's Republic of China (PRC) accounts for over 55% of the expected optical market share from 2006 to 2011, followed by India, Australia and Korea. Local vendors in PRC will continue to pose a major threat to incumbents based on its home turf advantage and its strategy to expand beyond PRC.

The main drivers of next generation technology deployment are the rapid growth of IP/Ethernet traffic; which challenges the capacity of existing optical infrastructure, upgrading and expansion of carrier networks, mobile backhaul infrastructure projects, and a fully converged network to increase service flexibility and reliability.

With consolidation of multiple networks – SAN and Ethernet - and access lines into one network, 2006 is a banner year of growth for enterprise deployment of optical networks. Moving forward, the deployment of MSPPs will increasingly be used for SAN extension, ethernet applications, business continuity and disaster recovery. For vertical industries, IDC predicts the education, finance and utility sectors to show strong potential for growth in optical deployments in 2007 and beyond.

APEJ Optical Networking Equipment Market, 2006 vs. 2011

Notes to Editor

Terminology:

Long-haul DWDM - Long Haul Dense Wavelength-Divison Multiplexing

Metro WDM - Metropolitan Wavelength-Division Multiplexing

MSPP - Multiservice Provisioning Platform

OCC - Optical Cross Connect

SONET/SDH - Legacy Synchronous Optical Networking/Synchronous Digital Hierarchy

PON - Passive Optical Network

Economies covered in the IDC Asia/Pacific Semiannual Optical Networking Equipment Tracker are Australia, Hong Kong, India, Indonesia, Korea, Malaysia, New Zealand, People's Republic of China, Philippines, Singapore, Taiwan, Thailand and Vietnam.

For more information about purchasing the research, please contact Selina Ang at +65-6228-7717 or sang@idc.com . For press inquiries, please contact Holly Fung at +852-2905-4225 or hfung@idc.com.

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