The demand for network capacity continued unabated in the recent third quarter, which continued to benefited the optical transport equipment sector. A report by Dell'Oro Group estimated that that wavelength-division multiplexing (WDM) revenue grew 3% year-over-year in Q3. The amount of capacity shipped on WDM equipment grew above 30% year-over-year, which led to the increase in Q3 revenues.
"Once again, disaggregated WDM systems shined the brightest, continuing to grow year-over-year for a sixteenth consecutive quarter," said Jimmy Yu, vice president at Dell’Oro Group. "In Q3 2019, it grew 28%, reaching an annualized revenue of $1.4 billion,”
Ciena and Huawei posted the largest market share gains in the quarter while the Asia Pacific region was the only one to have reported a decline. The latest report also found that the market is making a move towards 200-plus Gbps wavelengths, which is causing a slowdown in demand for 100 Gbps wavelengths.
There's also movement on the 400 Gbps front. Last week Ciena it was one of the vendors that helped enable AT&T's 400-gigabit optical connection that is carrying live traffic between Dallas and Atlanta.
Ciena, Internet2 and Juniper Networks also announced they had provisioned live traffic over a 1,367-mile circuit using a single 400-gigabit Ethernet link.