Free Space Optics - Assessment of Technologies and Markets

SUMMARY

The FSO industry shows some strength, and the FSO market is growing, though with much less speed that was predicted.

In spite of this, the commercial future of free-space optical communications remains uncertain. On the one hand, the push for ever-greater bandwidth could eventually outrun any RF capacity, forcing a shift to free-space optical. On the other, RF techniques have a long head start in inside-building applications, and the weather problem remains a severe one for optical inter-building links. Perhaps the best overall prospects are in space, where progress is being made in improving acquisition and tracking. Once these are perfected, the bandwidth advantages of optical free-space communications should open up a substantial market niche.

The report summarizes recent trends in the FSO development and shows benefits of its use in multiple applications. The technology is perfecting, using multiple lasers and optical-microwave protection as well as advances in optics; it is also shifting from the 800 nm widow to the 1500 nm window, allowing more transmit power.

The FSO industry consists of mostly established vendors that manufacture equipment for various distances and speeds of transmission. The highest speed of 2.5 Gb/s promises to be increased to 10 Gb/s in foreseeable future; some vendors claim a transmission path up to 5 km with at least 99.9% availability.

The report also analyzes the FSO market and provides its characteristics.

In the authors' opinion, FSO systems will continue to be used in niche applications, and the technology advances will make this industry stronger and stronger each year. Several of the most important factors that help the FSO market to grow are cost, short deployment time and maintenance-free communications channel.

Target Audience

This report is important to a wide audience of researches, technical and sales staff involved in the developing of last mile accesses. It is recommended for both service providers and vendors that are working with related technologies. The report also helps to understand issues associated with relationship between discussed systems and other technologies.

TABLE OF CONTENTS

1.0 Introduction

• 1.1 General
• 1.2 Need
• 1.3 Systems
• 1.4 Scope
• 1.5 Research Methodology
• 1.6 Target Audience

2.0 Free Space Optics: Technology

• 2.1 General
• 2.2 Major Characteristics
  • 2.2.1 Protection
• 2.3 Applications
  • 2.3.1 Requirements
  • 2.3.2 Inter-satellite Links
  • 2.3.3 Intra-building Communications
• 2.4 FSO Benefits and Limitations
  • 2.4.1 Weather Factor
  • 2.4.2 Building Swaying
• 2.5 Design Issues
• 2.6 Customers

3.0 Market

• 3.1 General
• 3.2 Market Drivers
• 3.3 Competition
  • 3.3.1 Fiber Optics Cable
  • 3.3.2 Microwave
  • 3.3.3 PONs
• 3.4 Forecast
  • 3.4.1 General
    • 3.4.1.1 Model Assumptions
    • 3.4.1.2 Structure
  • 3.4.2 Forecast

4.0 Vendors

• Airlinx
• AOptix
• CableFree
• Canon USA
• Dominion Laserbeam
• Infrared Technologies America
• IRLan Ltd.
• LightPointe (Closed doors in May and opened it in August of 2006)
• LaserBit
• MRV
• Optel
• Plaintree
• Proxim

5.0 Conclusions

• Figure 1: Simplified FSO Diagram
• Figure 2: FSO Market Segments
• Figure 3: FSO: Equipment Sales Estimate ($M)
• Figure 4: FSO Market Geography