Role of Optical Add-Drop Multiplexers in WDM Environment ASSESSMENT OF MARKETS AND TECHNOLOGIES

SUMMARY

This report is about Optical Add/Drop Multiplexers (OADMs), their markets and technologies. OADMhas found major applications being a part of Dense Wavelength Division Multiplexer (DWDM) or CourseWavelength Division Multiplexer (CWDM) systems. Requirements for metro and core transmission in theWavelength Division Multiplexing (WDM) environment and cost effectiveness of OADM contribute totheir success.

Our report addresses multiple issues associated with OADM and its applications in the WDMenvironment, including technical implementations and marketing perception. We discuss differenttypes of OADMs -- fixed, reconfigurable and dynamically-reconfigurable, and concentrate on theirplaces in the D/CWDM networks.

Particular, this report intends to answer at least the following questions:

What is the outlook for the market? Who are major market players? What standardization bodies areinvolved and how advanced are they in their work? What technologies support OADM? What types of OADMare coming to the market? What architecture types are being proposed? What products are availabletoday?

TABLE OF CONTENTS

1.0 INTRODUCTION 7

• 1.1 GENERAL 7
• 1.2 IMPROVEMENTS 7
• 1.3 OTN 7
• 1.4 OADM ROLE 8
• 1.5 DEMAND 9
• 1.6 HISTORY 9
• 1.7 SCOPE 10
• 1.8 RESEARCH METHODOLOGY 11
• 1.9 TARGET AUDIENCE 11

2.0 TECHNOLOGY 12

• 2.1 NETWORK LAYERED STRUCTURE 12
  • 2.1.1 SUB-LAYERS 14
• 2.2 DWDM SYSTEM 15
• 2.3 OADM 17
  • 2.3.1 BENEFITS 19
• 2.4 OADM TYPES 19
  • 2.4.1 FIXED 20
  • 2.4.2 RECONFIGURABLE 20
  • 2.4.3 DYNAMICALLY RECONFIGURABLE 20
  • 2.4.4 SYSTEMS, SUBSYSTEMS AND COMPONENTS 21
• 2.5 FIXED OADM 22
  • 2.5.1 GENERAL 22
  • 2.5.2 CHOICES 23
  • 2.5.3 COMPONENTS 24
    • 2.5.3.1 Optical Interference Filters 24
    • 2.5.3.2 Fiber Grating 25
    • 2.5.3.4 Planar Waveguides 26
  • 2.5.4 LIMITATIONS 27
• 2.6 RECONFIGURABLE OADM 28
  • 2.6.1 REASON 28
  • 2.6.2 HISTORY 28
  • 2.6.3 TYPES 28
  • 2.6.4 ECONOMICS: CONSIDERATIONS 31
• 2.7 DR-OADM 31
  • 2.7.1 HISTORY: REALITY 31
  • 2.7.2 STRUCTURE 32
  • 2.7.3 DRIVERS 32
  • 2.7.4 BENEFITS 33
  • 2.7.5 CHALLENGES 34
  • 2.7.6 MAJOR COMPONENTS 34
    • 2.7.6.1 VOA and Switches 34
    • 2.7.6.2 Tunable Laser 35
• 2.8 SUMMARY 36

3.0 MARKET 37

• 3.1 METHODOLOGY 37
• 3.2 APPLICATION 37
• 3.3 CHANGES 37
• 3.4 A LITTLE BIT OF HISTORY 38
• 3.5 DWDM MARKET 39
  • 3.5.1 CORE APPLICATIONS 39
    • 3.5.1.1 Categories 39
    • 3.5.1.2 Market Drivers 40
    • 3.5.1.3 Market Forecast 42
      • 3.5.1.3.1 Model Assumptions 42
      • 3.5.1.3.2 Estimates 42
  • 3.5.2 METRO DWDM 46
    • 3.5.2.1 General 46
    • 3.5.2.2 Estimates 46
• 3.6 OADM MARKET 47
  • 3.6.1 GENERAL 47
  • 3.6.2 FORECAST: METRO SEGMENT 47
  • 3.6.3 FORECAST: CORE SEGMENT 48
  • 3.6.4 SEGMENTATION 49
    • 3.6.4.1 By OADM Type 49
    • 3.6.4.2 By Geography 50

4.0 VENDORS 51

• AC PHOTONICS 51
• ADVA 52
• AFOP 53
• ALCATEL 54
• AOCTECH 56
• ALLIED TELESYN 57
• AVANEX 58
• CANOGA PERKINS 60
• CHROMUX 62
• CIENA 63
• CAPELLA PHOTONICS 65
• CISCO 66
• CORVIS (BROADWING) 67
• DICON (C, M ) 68
• FINISAR 69
• FUJITSU 69
• GLOBAL OPTICOM 70
• JDSU (M, C) 71
• LAMBDA CROSSING 74
• LIGHTCONNECT (C ) 75
• LYNX (C ) 76
• LUCENT 77
• MAHI NETWORKS 77
• MARCONI 78
• MRV 79
• NEC 80
• NEOPHOTONICS 81
• NORTEL 81
• O-ELAND (C ) 82
• OPTUN (C ) 83
• OPTOPLEX 84
• OPTOWAVES (C, M) 85
• PADTEC 85
• PHOTONIC BRIDGES 86
• PHOXTAL (C ) 87
• PRIMANEX (C, M) 89
• RBN (M, S) 90
• SANTEC 91
• SUMITOMI ELECTRIC 91
• TELLABS 92
• TERAXION 93
• TROPIC NETWORKS 94
• WORLD WIDE PACKETS 96
• XTELLUS 97
• XTERA 97

5.0 CONCLUSIONS 99