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LightCounting: advanced optics represent a bright spot in an otherwise challenging future


The market for optical components and modules


completed its sixth consecutive year of growth, with growth averaging 14 per cent in the period 2010-2015, according to the latest report from market research firm LightCounting. The growth rate in 2015 was 15 per


cent. Although this represents a slowdown compared to the previous year when the market grew 25 per cent, sales of optical components and modules are doing well compared to the rest of the optical hardware market. Sales of optical networking equipment have remained stubbornly flat over the last few years and growth projections for this market are modest, the market research firm says. The spending of the 15 leading


network operators is set to drop in 2016, significantly in the case of the Chinese operators. LightCounting forecasts that capex will be down seven per cent to US$178 billion dollars in 2016. Meanwhile, LightCounting’s Internet Index companies are expected to spend between US$43 and US$48 billion on servers, networks, and other infrastructure in 2016, up slightly from US$42.6 billion in 2015. ‘Sharp declines in sales of legacy


hardware and increasing use of white boxes and pluggable optics by end users dampen future prospects for the


FTTH Council Europe welcomes new President Ronan Kelly


At its General Assembly in Amsterdam on 19 and 20 April, the FTTH Council Europe appointed Ronan Kelly as its new president. Kelly becomes the eighth person to hold this position since the organisation was founded in 2005. He replaces outgoing president, Edgar Aker. ‘It is a great honour to have been


chosen as the new President of the FTTH Council Europe,’ said Kelly. ‘A lot has happened in the past year during Edgar Aker’s presidency. The FTTH market has matured and


equipment suppliers,’ the company explained. ‘Demand from the cloud customers does brighten up the picture, but whether equipment suppliers can capitalise on this opportunity remains to be seen.’ In contrast, the demand for optical


connectivity will remain strong despite the declining capex of telecom network operators, and lower than expected growth in infrastructure spending by cloud companies. Optics will take on a larger slice of the connectivity pie as data rates go up. The increasing complexity of


high-speed optics also translates to higher product pricing, LightCounting explains. This will boost the revenues of component suppliers, even while the advances offer cost reductions to end users in terms of dollars per gigabit of bandwidth. A particularly bright spot in 2015


was sales of FTTx transceivers and bi-directional optical subassemblies (BOSAs), which were up by a staggering 58 per cent. However, the FTTx segment is subject to demand for these products in China, which tend to fluctuate wildly. Excluding the FTTx and wireless segments, the global optical transceiver market was up 11 per cent in 2015, with a compound annual growth rate of nine per cent from 2010-2015.


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European decision-makers have shown a more “business-friendly” approach to broadband policies.’ In addition to his new position as


president of the FTTH Council Europe, Ronan Kelly continues in his role as chief technology officer, EMEA and APAC regions at broadband equipment maker Adtran.


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