DWDM and Core Networks Assessment Markets and Technologies

SUMMARY

This report is about Dense Wavelength Division Multiplexers (DWDMs) and their role in coretransmission. It also analyzes core networks, which are based on the DWDM utilization.

The report researches multiple areas of DWDM technologies and markets and analyzes the currentsituation in core fiber optics transmission. 2004-2005 are years that are showing the first signs oflife in this arena after almost four years of decline.

DWDMs extend multiplexing principles into the domain of wavelengths, and it can be compared withfrequency multiplexing in optical spectrum. The idea is to use fiber not to transmit signals just ona single wavelength, but to convey through the same fiber multiple wavelengths to better utilizealmost unlimited fiber optics capacity. In theory, such multiplexing can increase speed oftransmission in many times, but practical limitations such as sharpness of filters, fiberproperties, power limitations made, at the present time, limit the maximum number of multiplexedwavelengths to not more than one thousand with each wavelength carried 2.5 Gb/s -- 10 Gb/s signals(typical numbers for the core and metro environment).

TABLE OF CONTENTS

1.0 Introduction 5

• 1.1 General 5
• 1.2 History 5
• 1.3 Layered Structures 6
• 1.3.1 Sub-layers 8
• 1.4 Demand 9
• 1.5 Scope 10
• 1.6 Research Methodology 11
• 1.7 Target Audience 12

2.0 Technology 13

• 2.1 General: Progress Overview 13
• 2.2 Why to Use 13
• 2.3 DWDM Structure 14
• 2.3.1 Components 17
• 2.4 Optical Bands 19
• 2.5 Frequency Grid 20
• 2.6 Standardization 20
• 2.6 Fibers 21
• 2.7 Chromatic Dispersion 23
  • 2.7.1 Nature 23
  • 2.7.2 Challenges 24
  • 2.7.3 Solutions 25
  • 2.7.4 Strategies 25
  • 2.7.5 Major CD Compensation Methods 26
  • 2.7.6 Technological Trends 28
    • 2.7.6.1 Multi-Rate Devices 28
    • 2.7.6.2 Insertion Loss 28
    • 2.7.6.3 Variable CDC 28
    • 2.7.6.4 Multi-channel CDC 28
• 2.8 Polarization Mode Dispersion 28
  • 2.8.1 Nature 28
  • 2.8.2 Effect 30
  • 2.8.3 Penalties 30
  • 2.8.4 PMD Compensation Methods and Associated Effects 33
  • 2.8.5 Network Design 34
  • 2.8.6 Compensation Techniques 34
• 2.9 40 Gb/s Systems 34
  • 2.9.1 Directions 35
  • 2.9.2 Specifics 35
  • 2.9.3 Perspectives 37
• 2.10 Raman Amplification 37
• 2.11 Tunable Lasers 41
• 2.12 CWDM and DWDM 41
• 2.13 Carrier Grade DWDM 42
• 2.14 Evolution 42

3.0 Networks 44

• 3.1 Cost Efficiency 44
• 3.2 Protection 45
• 3.3 Core Structures 46
  • AboveNet 47
  • AT&T 48
  • Bharti Infotel 48
  • Cegetel 49
  • China Telecom 50
  • Energis 50
  • ETC 51
  • FLAG Telecom 51
  • Global Crossing 52
  • IP1 (Acquired by Telstra) 52
  • MCI 52
  • Sea-Me-We 4 53
  • Telefonica 54
  • Tiscali 54
  • TGN (Acquired by Videsh Sanchar Nigam Limited) 55
  • T-Systems 55
  • Verizon 56
  • Vodafone 56

4.0 MARKET 57

• 4.1 Methodology 57
• 4.2 Changes 57
• 4.3 A little bit of History 57
  • 4.3.1 Is This a Recovery? 58
• 4.4 Leaders 59
• 4.5 Price Characteristics 60
  • 4.5.1 Differences 60
• 4.6 Categories 62
• 4.7 Market Drivers 63
• 4.8 Market Forecast 64
  • 4.8.1 Model Assumptions 64
  • 4.8.2 Estimates 65

5.0 Vendors 69

• Alcatel 69
• APA 71
• BTI 71
• Broadcom 72
• Ciena 73
• Cisco 73
• Core Optics 74
• ECI 75
• Hitachi 76
• Huawei 77
• Fujitsu 80
• Lucent 81
• LuminentOIC 81
• Lumentis 82
• Marconi 83
• Mintera 84
• Nortel 85
• Siemens 86
• StrataLight 87
• Sycamore 89
• Tellabs 90
• TriQuint Semiconductor 91
• Xtera 92
• ZTE 93

6.0 Conclusion 93