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.
Nokia has set off a new wave of consolidation in the telecom equipment market, reaching a deal to acquire Alcatel-Lucent for $16.6 billion. That move is now fueling speculation that Ericsson will make a similar move to round out its portfolio with more wireline capabilities by making a run for either Ciena, Infinera or Juniper.
Infinera has crafted a deal to acquire Sweden-based Transmode for $350 million, a deal that will help the vendor capitalize on the emerging growth in 100G metro aggregation deployments taking place at the largest service providers.
Ciena, Infinera and Adva are diversifying their businesses to include data center providers that are looking for high capacity gear to interconnect their facilities, according to a report from Infonetics Research.
Equinix has tapped Infinera and its DTN-X to provide optical networking connectivity between three locations, including Frankfurt, Toronto and Singapore, a move that it says will enable it to offer 10, 40 and 100G data center interconnect services.
While Infinera may still have room to grow in the optical market, CEO Tom Fallon is not worried about the spending patterns of AT&T and Verizon, but rather on how the broader industry is purchasing optical products.
Infinera reported fourth-quarter 2014 revenues of $186 million, up from $173.6 million in the third quarter of 2014 and $139.1 million in the fourth quarter of 2013, due to ongoing customer wins of its DTN-X platform.