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CHINA TO REMAIN INTEGRAL MARKET FOR OPTICS SUPPLIERS, SAYS LIGHTCOUNTING


China has had a greater impact on the global optical communications industry than any other country over the last decade, according to optical analyst firm LightCounting’s updated Market for Optics in China report – and it’s likely to continue between now and 2023. Last year, however, saw the


rise of this market raise a few ‘red flags.’ The temporary ban on ZTE, and the ongoing dispute with Huawei, for example, said LightCounting, looked like part of a larger US government agenda to curb the influence of China on the global economy. At the time of publication,


Apple and Invidia are among some of the larger US-based companies reporting drops in quarterly revenues because of slower demand in China. Huawei saw its networking businesses slow in 2017-2018, but set new records in smartphones. The report also cites work


at home as keeping Chinese suppliers busy this year, with domestic infrastructure projects, and the acceleration of 5G


wireless infrastructure–licenses were granted to the three largest CSPs in December. China Mobile plans to start commercial deployments in the second half of 2019 and China Telecom and China Unicom in early 2020. Domestic deployment will generate large contracts to the Chinese equipment suppliers to offset slower business abroad, and additionally boost demand for higher speed optical transceivers, such as wireless fronthaul, Ethernet and DWDM modules. According to LightCounting,


the continuation of upgrades of cloud data centres in the region to 100GbE connectivity, along with future deployments of 400GbE, will most greatly impact on sales of networking equipment, optical components and modules deployed in the next five years. Looking at sales of data centre equipment for deployments in China, Inspur and H3C ramped revenues by 50 to 100 per cent in 2018. These companies, as well as Huawei, Lenovo and ZTE, are


APPLIED OPTOELECTRONICS PROVES OBO FEASIBILITY AND SAMPLES 400G SILICON-PHOTONICS OPTICAL MODULE


Applied Optoelectronics (AOI) is demonstrating the feasibility of its silicon photonics platform for the requirements of on-board optics (OBO) by sampling 400G optical modules based on silicon-photonics technology. The modules are designed


to meet these requirements, as outlined in specifications such as the recently-released version 1.1 of the onboard optical module specification published


www.fibre-systems.com


by the Consortium for Onboard Optics (COBO). OBO modules can be used


in higher-speed data switches, with interface speeds ranging from 400Gb/s to 1.6Tb/s. By designing these modules to be mated directly to a circuit board in such a switch, an increase in the density of optical interfaces to the switch is enabled. The sample modules are


designed for customers developing next-generation


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switches for large data centres, as these switches gradually evolve from 100Gb/s interconnects to 400Gp/s, and higher. They leverage new silicon-based optical technology to support 16 optical channels with a total data throughput of 400Gb/s. Future versions of the device, however, are expected to use the same technology, but increase the bandwidth up to 100Gb/s per optical channel, ultimately enabling 1.6Tb/s of data


throughput over a single OBO module. Brad Booth, president of the


Consortium for On-Board Optics, said: ‘AOI has made significant progress on the development of OBO modules since the publication of revision 1.0 of COBO’s specification. Having a single module footprint that supports bandwidth scaling from 400Gb/s to 1.6Tb/s provides flexibility to equipment vendors.’


Issue 23 n Spring 2019 n FiBRE SYSTEMS 5


selling their products, but also building complete data centres and managing their operations. Large state-owned companies


in China are said to be faring well, however, though smaller private enterprises are currently struggling and pointing towards tightening credit. The Shanghai Stock Exchange Composite Index contracted by 30 per cent last year, and stock prices of Chinese Internet companies actually


fell more dramatically than the those of US technology stocks. Historically, said LightCounting, the Chinese government has acted decisively during economic slowdowns, and in this instance is already increasing infrastructure spend for 2019, including many new subway lines. 5G wireless systems and cloud data centres also support projection for the market for optics in China next year.


Shuterstock


LightCounting


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