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FIBER OPTICAL EQUIPMENT INDUSTRY ANALYSIS- Network equipment includes traditional circuit switches and customer premises equipment Recently developed types of network equipments are dense wavelength division multiplexing DWDM systems digital subscriber line DSL access equipment and asynchronous transfer mode ATM switches Current technology in the market places more importance on the optical networking such as synchronous optical network SONET and DWDM systems This market segment sale is increasing dramatically in recent years Fiber optics is replacing traditional coax wiring regardless of the higher cost because of the need in higher-bandwidth to support todayfs large demands of voice and data network traffics Considering recent years in the fiber optical industry growth and its product life cycle stage it is hard to expect decrease in the total sales in this industry for several years However changes in economical condition may impact the rapid growth rate Fiber optical market is in the growth stage for its product life cycle Total spending in the fiber optical market rose from 41 billion in 1990 to 146 billion in 19991 Roughly it was 350 of growth in the fiber optical industries in the decade The worldwide demand for optical fiber grew by 35 percent to 70 million fiber kilometers in 1999 and demand for photonic modules and components used in high-data-rate networks soared 60 percent2 Despite the high cost of its product market is likely to expand for years The health of the overall economy affects the performance of optical wire line and optical wire equipment companies which in turn are linked directly to the general health of the communications equipment The market segment of the fiber optical equipments totaled 45 billion in sales in 19993 Despite the gigantic boost on the fiber optical equipment sales the economic slowdown in the US during 2000 to 2001 the market is encountering slight slowdown on the rapid market growth rate The US economy has shown some
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