ZTE overtakes Alca-Lu in optical segment

Michael Carroll
29 May 2013
00:00

Chinese vendors now hold the top two spots in the optical networking market, after ZTE overtook Alcatel-Lucent for the first time during the first quarter.

Research firm Ovum claims 1Q13 results place ZTE ahead of Alca-Lu, but note the market continued to decline overall, despite global revenues hitting $14.5 billion during the quarter. The decline is the fifth straight fall in quarterly revenues based on yearly comparisons, and put sales at a six year low, Ovum claims.

While network infrastructure analyst, Ron Kline, says the revenue decline is worrying, he points out that sales of 100G kit “continued to show strong growth both sequentially and year over year.”

The firm estimates 100G port shipments grew 41% quarter-on-quarter in 1Q13, and revenues 24%, taking annualized revenue through the $1 billion mark for the first time. Sales of next-generation converged packet optical gear including OTN switches was also up in the first quarter, but sales of 40G kit fell for the first time.

Analysis of equipment spend by region shows year-on-year falls in EMEA and Asia Pacific, growth in South America, and flat figures in North America.

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