DWDM Industry Market Strategies and Forecasts,

DWDM Industry Market Assessment Photograph by Joseph Neustadt DWDM Industry Market Strategies and Forecasts, 200-2006 WAVES OF OPPORTUNITY ARE FLOODING THE MARKET REPORT # S8050003452 35 PAGES 40+ TABLES AND FIGURES 200 $2,800

WinterGreen Research, Inc. Lexington, Massachusetts www.wintergreenresearch.com DWDM INDUSTRY MARKETS, Positioning TO PARTICIPATE IN HIGH GROWTH Internet Business to Business Exchange SEGMENTS MARKET STRATEGIES FORECASTS TO 2006 REPORT # S8050003452 35 PAGES 40+ TABLES AND FIGURES 200 $2,800

CHECK OUT THESE KEY TOPICS INTEGRATION DRIVES COMMUNICATIONS INDUSTRY RESTRUCTURING DWDM Industry Market Strategies DWDM Industry Market Positioning DWDM Industry Market Growth Opportunities End to End Solutions Rules Engines Positioned As Primary Systems DWDM INDUSTRY MARKET FORECASTS WORLDWIDE MARKET SHARES MISSION CRITICAL MIDDLEWARE MESSAGING RULE ENGINES SWITCHES, ROUTERS, ADAPTERS, ROUTING ENGINES TRANSFORMATION ENGINES, PUBLISH SUBSCRIBE DWDM IndustryMarkets Shares DWDM Industry Cross Platform Market Shares REPORT METHODOLOGY THIS IS THE FORTY FIRST REPORT IN A SERIES OF MARKET RESEARCH REPORTS THAT PROVIDE FORECASTS IN COMMUNICATIONS, TELECOMMUNICATIONS, THE INTERNET, COMPUTER, SOFTWARE, AND TELEPHONE EQUIPMENT. THE PROJECT LEADERS TAKE DIRECT RESPONSIBILITY FOR WRITING AND PREPARING EACH REPORT. THEY HAVE SIGNIFICANT EXPERIENCE PREPARING INDUSTRY STUDIES. FORECASTS ARE BASED ON PRIMARY RESEARCH AND PROPRIETARY DATA BASES. FORECASTS REFLECT ANALYSIS OF THE MARKET TRENDS IN THE SEGMENT AND RELATED SEGMENTS. UNIT AND DOLLAR SHIPMENTS ARE ANALYZED THROUGH CONSIDERATION OF DOLLAR VOLUME OF EACH MARKET PARTICIPATION IN THE SEGMENT. MARKET SHARE ANALYSIS INCLUDES CONVERSATIONS WITH MARKETING DIRECTORS, DISTRIBUTORS, LEADING MARKET PARTICIPANTS, AND COMPANIES SEEKING TO DEVELOP MEASURABLE REPORT # S8050003452 35 PAGES 40+ TABLES AND FIGURES 200 $2,800

MARKET SHARE. OVER 200 IN DEPTH INTERVIEWS ARE CONDUCTED FOR EACH REPORT WITH A BROAD RANGE OF KEY PARTICIPANTS AND OPINION LEADERS IN THE MARKET SEGMENT. APPLICATION INTEGRATION IS CENTRAL TO IMPLEMENTATION OF BUSINESS EXCHANGES YOU MUST HAVE THIS STUDY Alcatel Ciena Cisco Systems Corning Fujitsu Network Communications JDS Uniphase Lucent Technologies Marconi plc Nortel Networks Companies Profiled Optical Micro-Machines Ocular Networks PacketLight Networks Redback Networks Samsung / Corning Micro- Optics Sycamore Networks Telect Tellium Terabeam EXECUTIVE SUMMARY DWDM INDUSTRY DWDM MARKET INDUSTRY ANALYSIS EXECUTIVE SUMMARY ES-2 DWDM Market Application Forecasts ES- ES- DWDM Market Forecast Industry Analysis ES- DWDM INDUSTRY MARKET DEFINITION AND DESCRIPTION DWDM APPLICATION MARKET.4. Softswitch Open, Flexible DESCRIPTION Programming Environment. Next-Generation of Optical Services.5 Expanding Carrier IP Services To.. Intelligent Optical Services Business Customers.2 Managed Optical Services.6 Communication Servers 2.3 Storage Networking Services 4.4 Managed Fiber Service 5 DWDM INDUSTRY MARKET FORECAST INDUSTRY ANALYSIS 2. DWDM MARKET FORECAST INDUSTRY 2.5.2 DWDM Market Shares in the First ANALYSIS Half of 200 2. DWDM Market Application Forecasts 2.6 DWDM Market Forecasts 2.2 Business Applications Services 2.7 Lighting Dark Fiber 5 2.3 eservices 2.8 DWDM Regional Market Shares 6 2.4 Industry Market Segments 2.8. DWDM Market Shares in North 6 2.5 DWDM Market Shares America 5 9 2.5. DWDM Market Shares in 2000 2.8.2 DWDM Market Shares In Europe 0 REPORT # S8050003452 35 PAGES 40+ TABLES AND FIGURES 200 $2,800

2.8.3 DWDM Market Shares in Asia 2.9 Metropolitan Rings 7 APPLICATIONS FOR DWDM IN THE UNITED STATES AND NORTH AMERICA APPLICATIONS FOR DWDM IN THE UNITED 3.4.5 Cisco / LightWave STATES AND NORTH AMERICA 3.5 Cisco Offers DWDM Change in the 3. U.S. DWDM Value Added Applications Local Services Market 3.2 High-Performance Optical 3.6 All Services from One Cisco Platform Interconnection of Supercharged Servers via 0 3.7 Cisco Optical Service Configuration Gigabit Ethernet Technology 3.8 Rapidly Scalable Rings 3.3 IBM Global Services Outsourcing 3.9 New Market Opportunities With Native Model 3 Ethernet 5 3.3. Lucent Technologies / IBM Global 3.0 Ciena / Cable & Wireless Deploy 0G Services 4 Metropolitan Optical Transport Solution 3.4 Hewlett Packard And Nortel Networks 3. Ciena / Williams Communications E-Services 5 Network Intelligence 3.4. Integration of Servers and Optical 3.2 Ciena / Qwest Communications Networks 6 3.3 Protel Optical Internet Across Mexico 3.4.2 DWDM Reducing Networking with Intelligent Optical Solutions Complexity 6 3.4 Nextlink Optical Systems Light Next - 3.4.3 Operating as a Single Data Center Generation North American Backbone Network 9 3.4.4 Interconnection to Servers and Storage Across Optical Networks 0 APPLICATION FOR DWDM IN EUROPE 4. APPLICATIONS FOR DWDM IN EUROPE 4.4 ONO / Alcatel Global 4. Interoute Intelligent Optical Transport Telecommunication Solution Solutions 4.5 Marconi DWDM Systems in Europe 4.2 Deutsche Telekom / Lucent 4.6 Finnet / Marconi DWDM System Technologies Optical Equipment 4.7 Tele Danmark Optical Network 3 4.3 Turk Telekom / Alcatel Nation-Wide 4.8 Marconi / Telecom Italia DWDM Network in Turkey 4.9 Marconi / Meshed Transport In Italy 4 4.3. OptinexTM 686 WM 5 DWDM INDUSTRY COMPNAY PROFILES 5. DWDM COMPANY PROFILES 5.4.2 Corning Cable Systems 5. Alcatel 5.4.3 Corning Fiber Optic Customers 5.. Alcatel Revenue 5.4.4 Fiber Optic Products 5..2 Alcatel Market Outlook 5.4.5 Corning $50 Million Upgrade 3 5..3 Carrier Networking Optical Fiber Manufacturing Facility 4 5..4 Optics 4 5.4.6 Corning Expansions 5..5 Space & Components 5.4.7 Corning Acquisitions 5 5..6 Alcatel Optronics 5.4.8 Corning Strategy 5 5..7 Alcatel Optronics Revenue 5.4.9 Corning Frequency Control 5 5..8 Optical Subsystem Production 5.5 Fujitsu Network Communications 6 5.2 Ciena 7 5.6 JDS Uniphase 5.2. Ciena Corporation Intelligent 5.6. JDS Uniphase Customers Optical Networking 8 5.6.2 JDS Uniphase Products 5.2.2 Ciena All-Optical / Opto- 5.6.3 Company Strategy Electronic Approach 5.6.4 Acquisitions 0 5.2.3 Grooming Bandwidth 5.6.5 JDS Uniphase Revenue 5.2.4 Ciena Customers 5.7 Lucent Technologies 3 5.2.5 Ciena Revenue 5.7. Lucent Microelectronic Division 4 5.3 Cisco Systems 5.7.2 Lucent Products 5 5.4 Corning 7 5.7.3 Lucent Switching Solutions 5.4. Corning Cable Systems Integrates 5.7.4 Lucent Optical Networking Omega One Communications 5.7.5 Networking Industry 7 REPORT # S803000959 300 PAGES 25+ TABLES AND FIGURES 2000 $2,800

5.7.6 Lucent Revenues 5.0. OMM Products 33 5.7.7 Revenues by Segment 200 5.0.2 OMM Revenue 35 5.7.8 Lucent Technologies Revenue 5.0.3 OMM Customers 997-2000 37 5.0.4 OMM Strategic Positioning 5.7.9 Lucent Acquisitions 5.0.5 OMM Solution 37 5.7.0 Ortel Corporation Acquisition 5.0.6 OMM Products 37 5.7. Spring Tide Networks Acquisition 5.0.7 OMM Customers 38 5.7.2 Avaya 39 5. Ocular Networks 5.7.3 Sale of Power Systems 5.2 PacketLight Networks 39 5.7.4 Bell Labs 5.2. SiteLight 39 5.8 Marconi plc 5.2.2 CentraLight 4 5.8. Marconi Digital Switch 5.2.3 BrowseLight 42 5.8.2 Marconi Strategic Positioning 5.2.4 ControLight 42 5.8.3 Marconi Optical Product Offerings 5.3 Redback Networks 43 5.3. Redback Networks Products 5.8.4 Marconi Revenue 5.3.2 Redback Customers 44 5.8.5 Marconi Customers 5.3.3 Redback Revenues 45 5.8.6 Marconi Acquisitions 5.4 Samsung / Corning Micro-Optics 45 5.8.7 Marconi Divestiture 5.5 Sycamore Networks 46 5.9 Nortel Networks 5.5. Sycamore Products 46 5.9. Optical Internet with Nortel 5.5.2 Sycamore Vision Networks Optical Networks Solutions 5.5.3 Sycamore Acquisitions 46 5.9.2 Nortel Networks Customers 5.5.4 Sycamore Products 47 5.9.3 Nortel Networks Open Optical 5.5.5 Sycamore Customers Dense-Wavelength Division Multiplexing 5.5.6 Sycamore Strategy (DWDM) System 49 5.5.7 Sycamore OMM Strategy 5.9.4 IP-Ready Open Optical Interfaces 5.5.8 Sycamore Target Customer Base 50 5.9.5 Nortel Networks Optical Packet 5.5.9 Sycamore Networks Revenue Network Solution 5 5.5.0 Sycamore Revenue 2000 5.9.6 IP Data Services 5.5. Acquisitions 52 5.9.7 SONET/SDH 5.6 Telect 77 53 5.9.8 Optical IP Network Backbones 5.7 Tellium 78 53 5.9.9 Acquisitions 5.7. Tellium Aurora Switch 54 5.9.0 Focus on Solutions 5.8 Terabeam 54 5.0 Optical Micro-Machines 55 MANY OF THESE KEY TOPICS HAVE PHENOMENAL SUBCATEGORIES LIST OF TABLES AND FIGURES Market Forecasts 200-2006 Market Shares 2000 Table - 3 New Generation of Network Requirements 3 Table - (Continued) 4 New Generation of Network Requirements 4 Table -2 6 Data-Focused Softswitch Positioning 6 LIST OF TABLES AND FIGURES (CONTINUED) REPORT # S803000959 300 PAGES 25+ TABLES AND FIGURES 2000 $2,800

Market Forecasts 200-2006 Market Shares 2000 Figure 2-2 DWDM Segment Revenue, 2000 2 Figure 2-2 3 DWDM Segment Revenue, 200 3 Figure 2-3 4 DWDM Segment Revenue, 2006 4 Table 2-4 5 Global DWDM Market Shipment Forecasts By Application, Dollars, 200-2006 5 Figure 2-5 7 Application Integration Broker, Market Forecast, 2000-2006 7 Table 2-6 8 Summary Application Integration Broker Industry Market Segment Forecast, 2000-2006 8 Figure 2-7 0 DWDM Market Shares, 2000 0 Table 2-8 Global DWDM Landline Market Shares, 2000 Figure 2-9 2 DWDM Market Shares, First Half 200 2 Table 2-0 2 Global DWDM Landline Market Shares, First Half 200 2 Figure 2-3 DWDM Market Forecasts, Dollars, 2000-2006 3 Table 2-2 4 Global DWDM Market Shipment Forecasts, Dollars, 200-2006 4 Table 2-3 5 Global DWDM Market Shipment Forecasts, Dollars, By Region, 200-2006 5 Table 2-4 6 Global DWDM Landline Market Shares, North America, 2000 6 Table 2-5 7 Global DWDM Landline Market Shares, Europe, 2000 7 Table 2-6 8 Global DWDM Landline Market Shares, Japan, 2000 8 Table 2-7 8 Global DWDM Landline Market Shares, China, 2000 8 LIST OF TABLES AND FIGURES (CONTINUED) Market Forecasts 200-2006 Market Shares 2000 Table 3-2 Service Provider and Enterprise Optical Interconnection of Servers Innovation 2 Table 3-2 4 Lucent Data Networking, Optical, and Wireless Solutions 4 Table 3-2 (Continued) 5 Lucent Data Networking, Optical, and Wireless Solutions 5 Table 3-3 6 DWDM Integration of Servers and Optical Networks 6 REPORT NO. A803400283323 0+ PAGES 25 TABLES AND FIGURES 2000 $2,800

Table 3-3 (Continued) 7 DWDM Integration of Servers and Optical Networks 7 Table 3-4 7 DWDM Leveraging Distributed Computing Power 7 Table 3-5 8 Hewlett Packard and Nortel Networks Cooperative Aims 8 LIST OF TABLES AND FIGURES (CONTINUED) Market Forecasts 200-2006 Market Shares 2000 Table 4-2 Interoute Intelligence Strategy 2 LIST OF TABLES AND FIGURES (CONTINUED) Market Forecasts 200-2006 Market Shares 2000 Table 5-24 Key Elements JDS Uniphase Strategy 24 Table 5-2 25 JDS Uniphase Strategies To Develop Modules To Improve Customer Time-To-Market 25 Table 5-3 26 Key Elements of JDS Uniphase Strategic Positioning 26 Table 5-4 28 Lucent Markets 28 Table 5-5 30 Lucent Primary Switching Solution Products 30 Table 5-5 (Continued) 3 Lucent Primary Switching Solution Products 3 Table 5-6 32 Lucent Primary Optical Networking Products 32 Table 5-7 47 Nortel Networks Acquisitions 47 Table 5-8 47 Nortel Networks Customers 47 Table 5-8 (Continued) 48 Nortel Networks Customers 48 Table 5-9 57 OMM Strategic Objectives 57 Table 5-0 58 OMM MEMS Design, Optics, Opto-Electronic Benefits 58 Table 5-60 OMM Customers 60 Table 5-2 6 OMM Partnerships 6 Table 5-3 7 Sycamore Key Market Segments 7 Table 5-4 72 Key Elements of Sycamore Strategy 72 Table 5-4 (Continued) 73 Key Elements of Sycamore Strategy 73 REPORT NO. A803400283323 0+ PAGES 25 TABLES AND FIGURES 2000 $2,800

ABOUT THE COMPANY WinterGreen Research, founded in 985, provides strategic market assessments in telecommunications, communications equipment, health care, and advanced computer technology. Industry reports focus on opportunities that will expand existing markets or develop major new markets. The reports assess new product and service positioning strategies, new and evolving technologies, and technological impact on products, services, and markets. Market shares are provided. Leading market participants are profiled, and their marketing strategies, acquisitions, and strategic alliances are discussed. The principals of WinterGreen Research have been involved in analysis and forecasting of international business opportunities in telecommunications and advanced computer technology markets for over 30 years. ABOUT THE PRINCIPAL AUTHORS Ellen T. Curtiss, Technical Director, co-founder of WinterGreen Research, conducts strategic and market assessments in technology-based industries. Previously she was a member of the staff of Arthur D. Little, Inc., for 23 years, most recently as Vice President of Arthur D. Little Decision Resources, specializing in strategic planning and market development services. She is a graduate of Boston University and the Program for Management Development at Harvard Graduate School of Business Administration. She is the author of recent studies on worldwide telecommunications markets and the Top Ten Telecommunications market analysis and forecasts. Susan Eustis, President, co-founder of WinterGreen Research, has done research in communications and computer markets and applications. She holds several patents in microcomputing and parallel processing. She is the author of recent studies of the Regional Bell Operating Companies' marketing strategies, Internet equipment, a study of Internet Equipment, Worldwide Telecommunications Equipment, Top Ten Telecommunications, Digital Loop Carrier, Web Hosting, and Application Integration markets. Ms. Eustis is a graduate of Barnard College. REPORT # S803000959 300 PAGES 25+ TABLES AND FIGURES 2000 $2,800

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