Written by Kelsey Ziser, Senior Editor for LightReading.com
In this optical roundup: The DWDM market dropped 13% year-over-year in Q1. Plus, Arelion expands its Gulf Coast network with two new routes in Florida and Georgia.
Optical transport equipment market drops 13% in Q1
The optical transport equipment market has experienced a 13% year-over-year decline for Q1 2024, according to analysts with Dell'Oro Group. They forecast a 2% decline for the full 2024 year as well.
The Q1 decline is a result of excess DWDM system inventory and cautious spending by service providers during an uncertain macroeconomic climate, explained Jimmy Yu, VP for Dell'Oro.
"We think the steeper-than-expected drop in optical transport revenue in 1Q 2024 may have been driven by communication service providers becoming increasingly cautious about the macroeconomic conditions, causing them to delay projects into future quarters," said Yu in a statement.