Although metro WDM spending remains strong amongst top service providers, the optical transport equipment market declined year-over-year to $3.1 billion, said Dell'Oro Group. The research firm attributed the drop to slower sales in the quarter in all technology segments with the exception of WDM metro equipment.
CenturyLink will deliver 1.5 Tbps of super-channel transmission capacity to support SCinet during the International Conference for High Performance Computing, Networking, Storage and Analysis this week.
Tom Fallon, CEO of Infinera, which bolstered its portfolio with new metro capabilities from its Transmode acquisition, sees the cable industry's consolidation as a new way to win customers and deepen its relationships with existing cable company customers.
Infinera's CEO is seeing continual demand for 100G optical equipment from its mix of traditional telco and emerging data center customers for its Cloud Xpress product line. Speaking to investors during its second-quarter 2015 earnings call, Tom Fallon said customers see 100G as a key requirement.
Although the optical equipment market is becoming increasingly fractured between companies that are focused on one of three markets--traditional service providers, competitive service providers or Internet content providers--three companies are leading the way. According to the 2015 IHS Infonetics Optical Network Hardware Vendor scorecard, which profiles the top vendors in this space, Ciena, Cisco and Infinera have the strongest market presence and momentum.
Infinera says a diverse customer base has helped it weather what has continued to be a tough carrier spending environment in the recent year.
Global optical network hardware spending rose 5 percent in the first quarter of 2015 as EMEA began to show signs of recovery and North American web-based companies continued to enhance their optical networks, according to IHS Infonetics Research.
TeliaSonera International Carrier (TSIC) is seeing more of its customer base scaling their demand for 100G optical wavelength services in North America.
TeliaSonera International Carrier's ongoing drive into the North American market has enabled it to increase its overall reach to 40 percent.
The metro cloud and data center interconnection markets may be still relatively nascent, but Infinera said during its first-quarter earnings call that it is seeing momentum in both segments.