SOURCE: Infonetics Research

March 27, 2008 19:55 ET

Infonetics Research: Internet content providers like Google buying growing portion of optical gear

CAMPBELL, CA--(Marketwire - March 27, 2008) - A new report from market analyst firm Infonetics Research shows that the amount of money Internet content providers (ICPs) like Google, YouTube, and MySpace spent on optical network hardware worldwide hit $204 million in 2007, and is expected to increase steadily over the next 5 years.

The report, Optical Network Hardware by Vertical Market, says 86% of the 2007 $13.9 billion optical hardware market comes from service providers, with the bulk coming from incumbent telcos and mobile operators, of course, but with increasing amounts coming from competitive telcos, cable operators (particularly MSOs in North America), and ICPs.

The remaining 14% of the global market comes from non service providers, with the majority of that share coming from the top 4 verticals: government, finance, utilities, and education and research.

"Service provider investment in optical hardware is being driven by IP network transformations, business services, residential triple play, and mobile backhaul. Non service provider verticals, which represent roughly 1 of every 7 dollars invested in optical equipment, buy mostly metro WDM equipment, driven mostly by the need for high capacity, highly available storage extension, data center interconnection for businesses, and secure transmission," said Michael Howard, principal analyst at Infonetics Research.

Other highlights from the report:

--  Internet content provider spending on optical network hardware is
    forecast to jump 61% in the 6 years between 2006 and 2011
--  Nearly all optical long haul equipment and metro optical SONET/SDH
    hardware is purchased by service provider verticals
--  The government vertical represents roughly a quarter of all optical
    network hardware spending among non service providers
--  In 2007, 36% of all optical network hardware revenue came from EMEA,
    34% from North America, 25% Asia Pacific, and 6% CALA

Infonetics' report provides worldwide and regional market size, forecasts, and analysis for WDM and SONET/SDH optical network gear used in metro and long haul networks, broken into 5 service provider verticals (incumbent telco and mobile operators, competitives, cable operators, ICPs, and other), and 8 non service provider verticals (education and research, government, finance, healthcare, media and entertainment, transportation, utilities, and other).

For report highlights, log in to Infonetics' online portal from (see Optical Networks area). For sales, contact Larry Howard, vice president, at or +1 (408) 583-3335.

Infonetics Research ( is an international market research and consulting firm specializing in telecom and data networking. Services include quarterly market share and forecasting, end-user survey research, service provider survey research, and service provider capex analysis.

Contact Information

  • Press Contact
    Michael Howard
    Principal Analyst and Co-Founder
    Infonetics Research
    Email Contact