Lucent back on top of optical market


Lucent back on top of optical market

Will Garside
Troubled networking giant Lucent has won back the top spot in the optical networking market, according to the analysts Dell'Oro Group.

However, Dell'Oro said Lucent had merely won a bigger slice of a declining market.

Lucent increased its share by 3.6% to captured 21.1% of the market share last quarter.

Tim Sullivan, the president of optical networking at Lucent Technologies, said: "To achieve leading market share in this competitive environment shows that Lucent is on the right track."

The market is likely to get even more competitive with the worldwide optical networking market declining 23% over the course of 2001 to $17.7bn (£12.1bn), according to Shin Umeda, a principal analyst at Dell'Oro Group.

"The reduction in capital expenditure by telecommunications service providers will have a long-lasting effect on the sales of Optical Transport equipment. The number of large-scale optical network projects will be significantly lower over the next few years, so we don't expect overall market growth to return until 2003," said Umeda.

But Lucent's Sullivan is still optimistic that the 2,500 technology patents developed by the company's Bell Labs, which led to the world's first all optical switch will play a major part in both Lucent's and the market's recovery. Its DWDM next-generation networking technologies are set dramatically increase the carrying capacity of optical fibres,

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