Optical Component Market Opportunities, Strategies, and Forecasts, 2006 to Optical Component. Picture by Susie Eustis MOUNTAINS OF OPPORTUNITY

Transcription

1 Optical Component Market Opportunities, Strategies, and Forecasts, 2006 to 2012 Optical Component Picture by Susie Eustis MOUNTAINS OF OPPORTUNITY WinterGreen Research, Inc. Lexington, Massachusetts

2 CHECK OUT THESE KEY TOPICS OPTICAL COMPONENT MARKET SHARES OPTICAL COMPONENT MARKET FORECASTS Optical Component Market Overview Optical Component Competitive Positioning Integrated-Optics Industry Environment PRODUCTS AS BASIC BUILDING BLOCKS DWDM SYSTEMS TECHNOLOGY FOR TRANSITION OPTICAL COMPONENT AND AMPLIFIER PRODUCTS OPTICAL COMPONENT TECHNOLOGICAL CHALLENGES MICROLITHOGRAPHY OPTICAL COMPONENT COMMUNICATIONS CHALLENGES OPTICAL NETWORKING SYSTEMS OPTICS PACKAGING OPTICAL PHOTODETECTORS AND RECEIVERS OPPORTUNITY ABOUNDS WinterGreen Research, Inc. Lexington, Massachusetts

3 Optical Component Market Opportunities, Market Forecasts, and Market Strategies, As networks are implemented for triple play, they become complex, driving the need for fast transport based on optics. Manufacturers of communications and computer equipment are increasingly value the ability to provide integrated solutions for both opto-electronic components and integrated circuits. Growing capabilities in combining opto-electronic components and integrated circuits into single products position the market for rapid growth. Competitors seek to offer manufacturers of communications equipment a broad portfolio of opto-electronic components that are designed to operate together to create integrated solutions. Companies participating in the optical component industry are combining multiple devices into single products, often referred to as modules, to deliver to customers functions traditionally performed by a number of separate opto-electronic devices. Integrated product offerings combine integrated circuits and supporting software as part of a complete solution. Advanced system-on-a-chip capabilities allow users to integrate, on a single integrated circuit, multiple functions that required multiple integrated circuits. Optical components serving the 10 Gbps space are not the only products needed. The 2.5 Gbps space is very attractive, with 40 Gbps to make an appearance this year in The main application dynamics are optical systems used with high-speed transmitters that are required to transmit longer distances. The actual assembly of transmitters and boards will trend to the Asian region over the forecast period. Regional variation is significant in this market evolution with the underdeveloped countries choosing the least expensive components and the more developed regions adopting components that support agile, flexible network upgrades. A transponder is used in an optical network to transmit and receive optical signals. Integrated solutions bring key benefits to manufacturers of communications and computer equipment, such as improved product performance, reduced product size and cost, and decreased time-to-market. Competitive alternative solutions to Electro-optical (E-O) including Electroabsorption (E/A), Indium Phosphide (InP) and Mach-Zehnder (M-Z) modulator integration and standalone solutions are being developed. Packaging is the key driver, along with the main multiple:

4 Customers benefit by having the ability to purchase a broad array of products and solutions from a single supplier. Optical component companies seek to develop more integrated products and solutions that capitalize on experience in both opto-electronic components and integrated circuits. As the complexity of optical networks increases, integrating more optical components into network equipment enhances network performance. Equipment suppliers are coming to prefer to rely on optical component manufacturers that possess technical expertise and knowledge across a broad range of components, and are able to efficiently integrate multiple component types into a custom solution. Consequently telecommunications equipment suppliers seek to streamline vendor qualification procedures and concentrate volume purchases. Vendors may choose to use fewer components providing strategic advantage to market leaders. The converged voice / data applications mean that the voice networks transition to data networks that now include video transport. Optical component worldwide markets at $2.9 billion are expected to reach $7.6 billion by Integrated optical components include amplifiers, lasers, receivers, transmitters, and transceivers and transponders. Integrated optical components include amplifiers, lasers, receivers, transmitters, and transceivers and transponders. Markets are growing in response to the need to have more efficient networks that are high speed and agile. Flexibility and re-configurability are aspects of optical based networks.

5 Companies Profiled Market Leaders JDSU Finisar Avago Technologies Sumitomo Market Participants Agere Avanex Colibrys CyOptics Emcore Fujitsu NEC Oki Optical Components Opnext Sin Yu WaveSplitter Technologies Altera Bookham Corning DiCon Fiberoptics Firecomms Mitsubishi Electric NeoPhotonics OpLink Optium Corporation TriQuint

6 Optical Component Strategies and Forecasts, REPORT METHODOLOGY THIS IS THE 277TH REPORT IN A SERIES OF MARKET RESEARCH REPORTS THAT PROVIDE FORECASTS IN COMMUNICATIONS, TELECOMMUNICATIONS, THE INTERNET, COMPUTER, SOFTWARE, TELEPHONE EQUIPMENT, HEALTH EQUIPMENT, AND ENERGY. THE PROJECT LEADERS TAKE DIRECT RESPONSIBILITY FOR WRITING AND PREPARING EACH REPORT. THEY HAVE SIGNIFICANT EXPERIENCE PREPARING INDUSTRY STUDIES. FORECASTS ARE BASED ON PRIMARY RESEARCH AND PROPRIETARY DATA BASES. FORECASTS REFLECT ANALYSIS OF THE MARKET TRENDS IN THE SEGMENT AND RELATED SEGMENTS. UNIT AND DOLLAR SHIPMENTS ARE ANALYZED THROUGH CONSIDERATION OF DOLLAR VOLUME OF EACH MARKET PARTICIPATION IN THE SEGMENT. INSTALLED BASE ANALYSIS AND UNIT ANALYSIS IS BASED ON INTERVIEWS AND AN INFORMATION SEARCH. MARKET SHARE ANALYSIS INCLUDES CONVERSATIONS WITH KEY CUSTOMERS OF PRODUCTS, INDUSTRY SEGMENT LEADERS, MARKETING DIRECTORS, DISTRIBUTORS, LEADING MARKET PARTICIPANTS, OPINION LEADERS, AND COMPANIES SEEKING TO DEVELOP MEASURABLE MARKET SHARE. OVER 200 IN DEPTH INTERVIEWS ARE CONDUCTED FOR EACH REPORT WITH A BROAD RANGE OF KEY PARTICIPANTS AND INDUSTRY LEADERS IN THE MARKET SEGMENT. WE ESTABLISH ACCURATE MARKET FORECASTS BASED ON ECONOMIC AND MARKET CONDITIONS AS A BASE. USE INPUT/OUTPUT RATIOS, FLOW CHARTS, AND OTHER ECONOMIC METHODS TO QUANTIFY DATA. USE IN-HOUSE ANALYSTS WHO MEET STRINGENT QUALITY STANDARDS. INTERVIEWING KEY INDUSTRY PARTICIPANTS, EXPERTS AND END-USERS. OUR RESEARCH INCLUDES ACCESS TO LARGE PROPRIETARY DATABASES. LITERATURE SEARCH INCLUDES ANALYSIS OF TRADE PUBLICATIONS, GOVERNMENT REPORTS, AND CORPORATE LITERATURE. YOU MUST HAVE THIS STUDY

7 Optical Component Market Opportunities, Strategies, and Forecasts, 2006 to 2012 Table of Contents OPTICAL COMPONENT MARKET EXECUTIVE SUMMARY OPTICAL COMPONENT MARKET EXECUTIVE SUMMARY Key Elements Of Optical Component Business Strategy Optical Market Overview Bandwidth Management Wavelength Monitoring Market Demand Optical Component Competitive Positioning Optical Component Market Shares JDS Uniphase Fiber Optic Components And Subsystems Market Forecasts ES-1 ES-1 ES-3 ES-5 ES-5 ES-5 ES-7 ES-9 ES-11 ES-11 OPTICAL COMPONENT MARKET DYANAMICS AND MARKET DESCRIPTION 1. OPTICAL COMPONENT MARKET DYNAMICS AND MARKET DESCRIPTION Transmission And Reception Of Optical Signals Optical Networking Industry CATV Optical Components Telecommunications Optical Components Data And Storage Optical Components Fiberoptic Communications Systems Integrated-Optics Passive Integrated Products Strong Demand For Power Consumption Reduction Push To Develop Terabit-Class Optical Communications Systems ESCON, Fibre Channel, and Gigabit Ethernet WDM Within The Corporate Network/SAN Segments Multiplexer Demultiplexer Full-Rate / Half-Rate Clocking WDM: Wavelength-Division Multiplexing Optical Transmission Interfaces Optical Transmission Multi-Source Agreements Compatible TOSA/ROSA Standards Intelligent Photonic Solutions Industry Environment Fiber Optic Component Market Growth Factors Fiber Optic Component Network Market Financing Factors Demand For Network Capacity Is Growing Telecommunications Industry Will Ultimately Improve Industry Description Optical Networking Success Factors 1-27

8 1.7 Companies That Purchase Optical Components Network Systems Increase In Complexity And Density Products As Basic Building Blocks Active Components Passive Components Semi-Custom-Order Business Model Components And Modules As Building Blocks Optical Networks Product Categories DWDM Systems DWDM Architecture Modular Fiber Optic Components Long-Distance Optical Transport Components Technology For Transition Integrated Optics Evaluation Units Next -Generation Optical Network Infrastructure 1-43 OPTICAL COMPONENT MARKET OPPORTUNITIES AND MARKET FORECASTS 2. OPTICAL COMPONENT MARKET OPPORTUNITIES AND MARKET FORECASTS Optical Component Competitive Positioning Optical Component Competitive Environment Optical Component Business Optical Network Need For Optical Component Quality And Reliability Optical Component Market Conditions Optical Component Market Dynamics Price-Driven Competition Industries Deploying Fiberoptic Components And Modules Key Elements Of Optical Component Business Strategy Optical Market Overview Bandwidth Management Wavelength Monitoring Market Demand Fiber Optic Components And Subsystems Market Participants Optical Component Market Shares JDS Uniphase Finisar Optical Amplifiers Avanex Bookham Emcore NEC DiCon Opnext Worldwide Tunable Laser Market Shares Intel C-Band Tunable Laser Santec Narrow Linewidth Tunable Laser Fujitsu JDS Uniphase / Agility Communications JDSU / Agility Communications Tunability Tunable Transponder Avanex Bookham Tunable Laser 2-37

9 Bookham TLB-6000 (Vortex ) Tunable Lasers For Atomic And Molecular Spectroscopy And Interferometry Bookham TLB-6000 (Vortex ) Tunable Lasers Atomic-Clock, Cooling, Metrology, And Phase-Shifting-Interferometry Applications Intel, Pirelli and Opnext Worldwide ROADM and OADM Segment Analysis Optical Component Market Shares JDSU ROADMs Agile EDFA and EDFA Market Segments and Market Shares Worldwide Passive and Other Optical Component Market Shares Worldwide Optical Receiver, Transmitter, And Transceiver Optical Component Market Shares Fiber Optic Components And Subsystems Market Forecasts Agile Optical Network Market Forecasts Optical Component DWDM, OADM, ROADM, and A/D Mux/Demux Market Forecasts Optical Amplifier FOAD, EDFA, and Agile EDFA Market Forecasts Optical Receiver, Transmitter, and Transceiver Market Forecasts Fiber Optic 10 Gb/S Systems Components And Subsystems Market Forecasts Optical Component Market Demand Optical Component Competitive Positioning Combining Opto-Electronic Components And Integrated Circuits Optical Component Market Factors Optical Component Market Driving Forces OADM and ROADM Market Analysis Lighting Dark Fiber All-Optical Network Optical Metro Markets Redefining Network Configuration Impact of High Speed Networks Dense Wavelength Division Multiplexing (DWDM) Dense Wavelength Division Multiplexing Capacity Multiplexing Family Transceiver And Transponder Module Market Analysis Optical Amplification Integrated Processing Power Gbps technologies G Driven By Demand For Voice-Over-IP And IPTV Services Transceiver Module Operating At 2.5 Gb/s Over Single Mode Fiber SAN Transition to 4Gps Optical Mouse G Ethernet Pricing Market Driving Forces -- Bandwidth Surge ROADM Advanced Laser Technologies Segmentation Of The Optical Amplifier Communications Network Dispersion Management Reduce The Number Of Suppliers Metro Optical Networks Tunable Laser Market Forecast Analysis Tunable Lasers Tunable Lasers Tunable Laser Market Forecasts Tunable Lasers Market Forecasts Tunable Laser Demand 2-112

10 Tunable Laser Market Growth Factors Photonic Integrated Circuit (PIC) Market Forecast Increase In Bandwidth Demand Optical Switching Changing Internet Traffic Patterns Data Traffic Optical Component Testers Optical Networking Module Market Transitioning From Fixed To Agile Solutions JDSU JDSU Tunable Lasers Bookham Agere SoCs Medical Tunable Laser Market Analysis Tunable Laser Medical Systems Tunable Laser Demand Mid IR Medical Tunable Laser Market Medical Mid Range IR Tunable Laser Forecasts, Units and Dollars Respiratory Diagnostic And Treatment Use Of Tunable Lasers Breath Meter Asthma Screening And Asthma Therapeutic Monitoring Ekips Breath Meter Spectroscopy Applications Aculight Fiber-Pumped Singly Resonant Optical Parametric Oscillator Aculight Lasers For Locating And Treating Peripheral Nerves, Brain Mapping, And Nerve Conduction Lumenis Quantum System Uses Tunable Diode Lasers Cohherent Medical OEM Use Of Tunable Lasers For Cancer Diagnosis And Treatment Using Light To Effect Definitive Diagnosis Of Breast Cancer Gold Nanoparticles and Lasers in the Otolaryngology-Head and Neck Surgery Noninvasive Medical Diagnostics Depend on Using Human Tissue Transparent Wavelength Mediscience Technology Use Of Tunable Lasers For Vascular and Heart Diagnosis / Heart Therapy Minimally Invasive Surgery Techniques Leverage Diagnostic And Treatment Use Of Tunable Lasers Tunable Laser Medical Market Growth Factors Tunable Lasers Replace Spirometry Gbps, 10 Gbps, and 40 Gbps Optical Component Segment Analysis Transceivers Mux/Demuxes Optical Amplifiers Switches & OADMs Signal Conditioning Sub-Assembly Components Attenuators (Fixed) Circulators Collimators Isolators Polarization components Splitters WDMs 2-156

11 Thin-Film Filters Fiber Bragg Gratings Planar Waveguide (includes AWG & Echelle gratings) Bulk Grating Different Types Of Optical Amplifier EDFAs EDWAs SOAs Raman Small Switches (1x2, 2x2 etc) Matrix Switches (8x8 and above) Reconfigurable OADMs Wavelength Blockers Tunable Filters Optical Channel Monitors (OCMs) VOAs VMUX (integrated VOA & MUX) Dynamic Gain Equalizers (DGE) Tunable Dispersion Compensators (TDC) Lasers (Chips & Packaged) VCSELs Modulators Wavelength Lockers Detectors (Chips & Packaged) Pump Lasers Circulators Isolators Couplers/Splitters Attenuators (Fixed) Polarization control Transmission Fiber Specialty Fiber Cable Assemblies & Patchcords Connectors Electroabsorption (E/A) Market Segment E-O Modulators 40 Gbps Optical Transmission Market Optical Component Regional Market Segments Optical Component Regional Analysis Huawei Technologies Chinese Network Equipment OPTICAL COMPONENT PRODUCT DESCRIPTION 3. OPTICAL COMPONENT PRODUCT DESCRIPTION Optical Components Intelligent Photonic Solutions Optical Components Offered By The Market Leader JDSU JDS Uniphase JDSU Wavelength Blocker (WB) JDS Uniphase JDSU AON Portfolio JDSU Agile Optical Switches JDSU Agile Transmission Modules 3-10

12 3.1.9 JDSU Agile Optical Amplifiers Bookham Optical Components Avanex Intelligent Photonic Solutions EMCORE Optical Component Products Emcore FTTP Altera Communications Mega Functions Optical Amplifiers Optical Layer Subsystems JDSU Products JDSU Pump Lasers For Optical Amplification JDSU Pump Laser, 14xx, 300 mw, Raman Avanex Lithium Niobate PowerBit IM Avanex Optical Amplifier Modules Components Avanex Optical Amplifier PureGain Avanex Optical Amplifier PureGainTM Avanex Optical Amplifier PureGainTM Avanex Optical Amplifier PureGain 5500R Avanex Optical Amplifier PureGainTM Avanex Optical Amplifier PureGainTM Avanex Optical Amplifier PowerPure 1998 PLM Avanex Optical Amplifier PowerPure 1998 PLM Avanex Optical Amplifier PowerPure 1998 PLU Avanex PowerDeepTM 1992 SGP Avanex PowerEqualizerTM Avanex PowerBragg 1901 GFF Bookham Receivers Amplifiers Bookham Optical Amplifier MinNi Gain Block Bookham Amplifier DWDM EDFA Modules Custom Solutions Bookham Pump Laser Sources Bookham Intelligent Optical Platform Amplifier Finisar Single-Stage Isolator Arrays Finisar Dual-Stage Isolator Arrays Finisar C/L Band Splitter Finisar 14xx C-Band Pump-Signal Combiner Finisar 14xx Pump-Pump Combiner Finisar ipbc Polarization Beam Combiner Finisar Optical Amplifiers Sumitomo Raman Amplifier OpLink Amplifications Oki Broadband Amp Driver Modules Optical Mux, Switching, and Amplification Products - Optical Switching - 1 x 2 Optical Switches Oki Optical Mux, Switching, and Amplification Products Oki Optical Switching - 2 x 1 Optical Switches w/ Power and Position Monitor Oki Optical Mux, Switching, and Amplification Products - Optical Switching - 1 x 8 Optical Switches Optical Mux, Switching, and Amplification Products - Optical Switching - 4 x 4 Optical Switches Oki Optical Mux, Switching, and Amplification Products - Optical Switching Optical Switches Oki Optical Mux, Switching, and Amplification Products - Optical Mux/DeMux 3-45

13 Oki Optical Mux, Switching, and Amplification Products - Erbium Doped Fiber Amplifiers (EDFAs) Oki 10G and 12.5G DIE Trans-Impedance Amplifiers - TIA & TIALA Oki 40G DIE Compound Semiconductors - Broadband Amplifiers Oki Compound Semiconductor IC's - 4GHz Wideband Amplifier Oki 10G Packaged Compound Semiconductors - Limiting and Broadband Amplifiers Oki 10G DIE Compound Semiconductors - Limiting and Broadband Amplifiers OpLink Amplification OpLink EDFA and Raman Amplifiers OpLink Fuse-Based Couplers And Pump Combiners Laser DWDM Products JDSU Pump Laser DWDM Products Avanex Optical Signal Components At The Foundation Of Ultra-Fast Fiber Optical Networks Avanex Lithium-Niobate Tunable DWDM Systems External Modulators Avanex PowerFlexTM 1926 SDH Transmitter And Receiver Pairs Avanex Tunable CW Locked Laser Module PowerSourceTM 1935 TLI Avanex Lithium Niobate PowerBit IM Avanex PowerEqualizerTM Avanex PowerReach(TM) Dynamically Tunable Laser Modules for Tunable Transponder Products In the L-Band Optical Component Transceivers, Receivers, and Transmitters Avanex, Mitsubishi Electric, and Opnext Transceiver Manufacturers 10Gbit/s XFP-E (Extended Size) Transceivers to Achieve High Performance Applications of 10Gbit/s Transmission Systems Bookham DWDM Transceivers Bookham 2.7Gb/s DWDM Transceivers Bookham Receivers Bookham Transmitter Optical Assemblies TOA/ROA Customized For Nortel Networks 10 Gb/s Network Systems Bookham Positioned To Benefit From The Increased Use Of Lasers In New Markets Bookham Amplifier DWDM EDFA Modules Custom Solutions Bookham DWDM Network Lasers Finisar Optical Circulators (C-band) Finisar L-band Circulator Finisar C/L Band Splitter Finisar 14xx C-Band Pump-Signal Combiner Finisar Optical Transmitters, Receivers And Transceivers for SAN Applications Fujitsu Optical Components 300pin MSA 10Gb/s Transponder Fujitsu Optical Components XFP MSA 10Gb/s Transceiver Fujitsu SFP MSA Transceiver Agere SONET/SDH Framers Agere High-Speed Interfaces: Mappers/Muxes Xtellus Turnkey ROADM Module Family Components JDSU Source Lasers JDSU Photo Detectors and Receivers JDSU Modulators JDSU Wavelength Lockers JDSU WDM Couplers, Filters, Isolators and Circulators 3-74

14 3.8.6 JDSU Switches and Attenuators JDSU High Power Pump Lasers JDSU Submarine Applications JDSU WaveReady Products JDSU Instrumentation Oki 10G Pigtailed Fiber Optic Modules, DWDM CW light source lasers, EMLS Oki 10G TOSA Fiber Optic Modules - DML Oki Optical Service Channel Pigtailed Fiber Optic Modules: 1300nm and 1400nm Series Oki Optical Service Channel Pigtailed Fiber Optic Modules nm Series Oki Optical Service Channel Pigtailed Fiber Optic Modules nm Series Oki Optical Service Channel Pigtailed Fiber Optic Modules nm Series Oki Pulsed Laser Diode Pigtailed Fiber Optic Modules , 1410 and 1490nm Series Oki Pulsed Laser Diode Pigtailed Fiber Optic Modules nm MMF Series Oki Pulsed Laser Diode Pigtailed Fiber Optic Modules nm Series Oki Pulsed Laser Diode Pigtailed Fiber Optic Modules nm Series OpLink Mux/Demux OpLink Monitoring/Conditioning OpLink Transmission OpLink RGB Laser Module Tunable Lasers JDSU / Agility Communications Tunable Lasers JDSU / Agility Communications Tunable Lasers Avanex Lithium Niobate PowerBit IM Avanex PowerReach Dynamically Tunable Laser Modules for Tunable Transponder Products In the L-Band Bookham Direct Modulated Lasers Bookham Tunable Laser Products Bookham New Focus Tunable Lasers Bookham TLB-6000 (Vortex ) Tunable Lasers For Atomic And Molecular Spectroscopy And Interferometry Bookham TLB-6000 (Vortex ) Tunable Lasers Atomic-Clock, Cooling, Metrology, And Phase-Shifting-Interferometry Applications Bookham Transmitters 3-91 OPTICAL COMPONENT TECHNOLOGY 4. OPTICAL COMPONENT TECHNOLOGY Microlithography Optical Component Technological Challenges Planar Technology InP-Hemt Indium Phosphide-Based High-Electron Mobility Transistor Fujitsu Technology Delivers High Speeds Fujitsu Technology Wavelength Lockers Limitations of Transmission At 40 Gbits/Sec G Long-Haul DWDM And Advanced Modulation High-Quality Signal Generation Requirements for LiNbO3modulators G LiNbO3 Modulation Universal Transponders Optical Component Technology Addresses Complex Communications Challenges Next -Generation Components Leveraging Inherent Capacity Of Optical Fiber To Transmit Data 4-13

15 4.3.3 Constraints Of Hybrid Optical And Electrical Devices Optical Networking Systems Key Technologies Polarization Processing Optics Packaging Source Lasers Integrating Switching, DWDM, And Other Transport Port Switch Fabric Internet Protocol (IP) Over The Optical Layer Next Generation Materials NEC Fundamental Silicon (Si) Nanophotonics Technology NEC Compound Semiconductor Devices Compact Optical Module High Volume Optics Manufacturing Narrowly Tunable Lasers Widely Tunable Lasers Sparing Tuning To A Hundred Channels Variable Optical Attenuator Photons Versus Electrons Tunable Laser Increased Channel Count System Concept MEMS VCSEL Optics As An Aggregation Technique Between Core Routers Indium Phosphide Optical Photodetectors And Receivers Pump Lasers Modulators Remote Network Management 4-45 OPTICAL COMPONENT COMPANIES 5. OPTICAL COMPONENT COMPANIES Agere Altera Avago Technologies Avanex Bookham Colibrys Products and Markets Corning Corning Cable Systems Public/Carrier Networks Private Networks Original Equipment Manufacturer (OEM) Networks Telecommunications Segment CyOptics DiCon Fiberoptics Emcore Fiber Optics Cable Television (CATV) and Fiber-to-the-premise (FTTP) Networks Telecommunications Networks Data Communications Networks 5-21

16 Satellite Communications Networks Storage Area Networks Defense and Homeland Security Finisar Finisar Digital Fiber Optics for Computer and Access Networks Infineon Fiber Optic Transceiver Business Firecomms Fujitsu Fujitsu Network Communications Fujitsu Considers WiMAX vs. 3G vs. Wi-Fi Fujitsu FLASHWAVE 7500 Small System Fujitsu FASST Transition Solutions Fujitsu Microelectronics America Fujitsu Network Communications Inc JDSU Communications Products Modules and Subsystems Test & Measurement Commercial and Consumer Products Custom Optics Commercial Lasers JDSU / Agility Communications Mitsubishi Electric NEC NEC IT And Networking Technologies NeoPhotonics Oki Optical Components OpLink Opnext Optium Corporation Sin Yu Sumitomo TriQuint WaveSplitter Technologies 5-51

17 List of Tables and Figures OPTICAL COMPONENT MARKET EXECUTIVE SUMMARY Table ES-1 Key Elements Of Optical Component Vendor Business Strategy Figure ES-2 Worldwide Optical Component Shipments Market Shares, Dollars, 2005 Figure ES-3 Worldwide Optical Component Industry Segment Market Forecasts, ES-1 ES-10 ES-12 OPTICAL COMPONENT MARKET DYANAMICS AND MARKET DESCRIPTION Table Selected Communications Market Participants Table Integrated Optics In Active Components Table Passive Integrated Product Platforms Table Passive Integrated Product Products Table MSA Compatible TOSA/ROSA Standards Table Optical Component Product Qualification Process Table Fiber Optic Component Market Growth Factors Table Fiber Optic Component Network Market Financing Factors Table Telecommunications Industry Market Growth Factors Table Internet Traffic Broadband Content Table Public Telecommunications Network Market Driving Forces Table Fiber Optic Network Characteristics Table Optical Networking Success Factors Table Telecommunications And Cable Television Equipment Providers Table Fiber Optic Component Market Driving Forces OPTICAL COMPONENT MARKET OPPORTUNITIES AND MARKET FORECASTS Table Optical Networking System Market Segments Table Industries Deploying Fiberoptic Components And Modules

18 Table Key Elements Of Optical Component Vendor Business Strategy Table Active Optical Component Market Demand Table Active Optical Component Products Table Passive Optical Component Products Table Typical Optical Network Principal Systems Table Principal Competitors In The Fiber Optic Components And Subsystems Market Figure Worldwide Optical Component Shipments Market Shares, Dollars, 2005 Table Worldwide Optical Component Shipments Market Shares, Dollars, 2005 Figure Worldwide Tunable Laser Market Shares, Dollars, 2005 Table Worldwide Tunable Laser Market Shares, Dollars, 2005 Figure Worldwide DWDM, OADM, and ROADM Add/Drop Mux/Demux Optical Component Market Shares, Dollars, 2005 Table Worldwide DWDM, OADM, and ROADM Add/Drop Mux/Demux Optical Component Market Shares, Dollars, 2005 Figure Worldwide ROADM and OADM, Segment Analysis Optical Component Market Shares, Dollars, 2005 Table Worldwide ROADM and OADM, Segment Analysis Optical Component Market Shares, Dollars, 2005 Figure Worldwide EDFA and FOAD Segment Analysis Optical Component Market Shares, Dollars, 2005 Table Worldwide EDFA and FOAD Segment Analysis Optical Component Market Shares, Dollars, 2005 Figure Worldwide Erbium Doped Fiber Amplifier EDFA, Agile EDFA and Fixed Amplifier Optical Component Market Shares, Dollars, 2005 Table Worldwide Erbium Doped Fiber Amplifier EDFA, Agile EDFA and Fixed Amplifier Optical Component Market Shares, Dollars, 2005 Table Worldwide Optical Amplifier Agile EDFA Optical Component Market Shares, Dollars, 2005 Table Worldwide Passive and Other Optical Component Market Shares, Dollars, 2005 Figure Worldwide Passive and Other Optical Component Market Shares, Dollars, 2005 Figure Worldwide Optical Receiver, Transmitter, and Transceiver Optical Component Market Shares, Dollars, 2005 Table Worldwide Optical Receiver, Transmitter, and Transceiver Optical Component Market Shares, Dollars, 2005

19 Figure Worldwide Optical Component, Industry Segment Market Forecasts, Table Worldwide Optical Component, Industry Segment Market Forecasts, Figure Worldwide Optical Component DWDM, OADM, ROADM, and A/D Mux/Demux Market Forecasts, Table Worldwide Optical Component DWDM, OADM, ROADM, and A/D Mux/Demux Market Forecasts, Figure Worldwide Optical Amplifier EDFA, Agile EDFA, and Fixed Optical Amplifiers Market Forecasts, Table Worldwide Optical Amplifier EDFA, Agile EDFA, and Fixed Optical Amplifiers Market Forecasts, Figure Worldwide Optical Component Receiver, Transmitter, and Transceiver Market Forecasts, Table Worldwide Optical Component Receiver, Transmitter, and Transceiver Market Forecasts, Table Significant Requirements Among Optical Component Users Table Optical Component Market Trends Table Optical Component Market Issues Table Optical Component Market Driving Forces Figure JDSU ROADM Table Impact of Optical Switching on IP Transport Speeds Table Gbps Technologies Table Gbps Value Chain Table Gbps Active Optics Component And Subsystems Products Table Segments Of The Network Table Business Uses of the Internet Driving Broadband Markets Table Consumer Uses Of The Internet Driving Broadband Markets Figure Worldwide Tunable Laser Market Forecasts, Table Worldwide Tunable Laser Market Forecasts, Table Reasons Tunable Lasers Replace Fixed Wavelength Lasers Table Tunable Laser Competitive Advantage Market Factors

20 Table Tunable Laser Market Growth Factors Table Tunable Laser Specifications Required By Long-Haul 10-Gbit/Sec System Table Systems Used To Achieve Fiber Optic Scalability Figure Worldwide Mid IR Medical Tunable Laser Market Forecasts, Dollars, Figure Worldwide Mid IR Medical Tunable Laser Market Forecasts, Shipments, Units Table Worldwide Mid IR Medical Tunable Laser Market Forecasts, Shipments, Dollars, Table Tunable Laser Competitive Advantage Market Factors Table Selected Medical Uses of Lasers, 2005 Table Medical Selected Research Uses Of Lasers Likely To Evolve Into Medical Device Technologies, 2005 Table Reasons Tunable Lasers Replace Spirometry Table Worldwide Electro Optical E/O Electroabsorption (E/A) Iridium Phosphide, and Mach-Zehnder Segment Analysis Optical Component Market Shares, Dollars, 2005 Table Worldwide Optical Component Regional Market Segments, Dollars, 2005 Table Optical Component Regional Market Analysis OPTICAL COMPONENT PRODUCT DESCRIPTION Table Optical Components offered by the market leader JDSU Table JDSU Agile Optical Component Solutions Figure JDS Uniphase Wavelength Blocker, L Band Table Emcore Products Figure Emcore Product Deployment Throughout Communication Infrastructure Table JDSU Products Figure JDSU Amplifer, Switch, and Interleaver Products Table JDSU Offers A Broad Line Of Pump Lasers For Optical Amplification Figure JDSU Pump Laser, 14xx, 300 mw, Raman Table JDSU 3400 Series 14xx nm, 300 mw Laser Diode Key Features Table JDSU 3400 Series 14xx nm, 300 mw Laser Diode Applications

21 Table Finisar Features Table Finisar Optical Amplifiers Applications Table JDSU Products Table Avanex Transmission Solutions Lithium Niobate Features Table Compatible XFP-E Transceiver Functions Table XFP-E Specification Functions Table Xtellus XRM-7500 ROADM functionality Table Bookham Direct Modulated Lasers Modules OPTICAL COMPONENT TECHNOLOGY Table Key Optical Network Technologies Table NEC High-Speed Transmission Table Selected Optical Add / Drop Parameters for Tunable Lasers OPTICAL COMPONENT COMPANIES Table Bookham s Optical Solutions Markets Table Bookham s Product Portfolio Table Colibrys Custom Market Applications Table Colibrys s Products Range Table Corning Cable Systems Offerings Table Corning s Hardware and Equipment Products Table Emcore s Solutions Table Markets Served by Emcore s Fiber Optics Segment Table Emcore s CATV and FTTP Products Table Parallel Optical Transceiver Product Family Table Emcore s Optical Components and Modules for Data Applications Table JDSU Components

22 Table JDSU Custom Optic Products Uses Table Mitsubishi Electric Products Table Oki Optical Components Products Table OpLink Product Benefits Table OpLink Product Portfolio Solutions Table Opnext s High-Performance Optical Components Table Sumitomo Electric Industries Optical Components Table WaveSplitter s Fused Fiber and Planar Lightguide Circuit Products Table WaveSplitter Product Portfolio

23 ABOUT THE COMPANY WINTERGREEN RESEARCH, HAS A UNIQUE RESEARCH STRATEGY THAT RELATES TO IDENTIFYING MARKET TRENDS THROUGH READING AND INTERVIEWING OPINION LEADERS. BY READING THE ELECTRONIC EQUIVALENT OF 40 FEET OF PAPER, WINTERGREEN RESEARCH SENIOR ANALYSTS CAN LEARN A LOT MORE ABOUT MARKETS, A LOT FASTER THAN CAN BE LEARNED THROUGH EXPENSIVE SURVEYS AND FOCUS GROUPS. THINKING ABOUT MARKET TRENDS IS A HIGH PRIORITY AT WINTERGREEN RESEARCH. AS WITH ALL RESEARCH, THE VALUE PROPOSITION FOR COMPETITIVE ANALYSIS COMES FROM INTELLECTUAL INPUT. IT IS A LUXURY REALLY, AVAILABLE TO ONLY A VERY FEW PEOPLE, TO BE ABLE TO GATHER INFORMATION, LOTS OF INFORMATION FROM READING MASSIVE AMOUNTS OF CONTENT, AND THEN TRYING TO MAKE SENSE OF THAT CONTENT. THE ABILITY TO THINK ABOUT MARKET TRENDS IS ENHANCED BY DOING IT OVER AND OVER FOR MANY DIFFERENT MARKETS. THAT IS WHAT WINTERGREEN RESEARCH IS ALL ABOUT: READING AND THINKING IS AN ESSENTIAL ASP ECT OF COMPETITIVE ANALYSIS. TALKING TO OPINION LEADERS IS THE THIRD ESSENTIAL ASPECT OF PRODUCING GOOD, RELIABLE DATA. WINTERGREEN RESEARCH, FOUNDED IN 1985, PROVIDES STRATEGIC MARKET ASSESSMENTS IN TELECOMMUNICATIONS, COMMUNICATIONS EQUIPMENT, HEALTH CARE, INTERNET AND ADVANCED COMPUTER TECHNOLOGY. INDUSTRY REPORTS FOCUS ON OPPORTUNITIES THAT EXPAND EXISTING MARKETS OR DEVELOP MAJOR NEW MARKETS. THE REPORTS ASSESS NEW PRODUCT AND SERVICE POSITIONING STRATEGIES, NEW AND EVOLVING TECHNOLOGIES, AND TECHNOLOGICAL IMPACT ON PRODUCTS, SERVICES, AND MARKETS. MARKET SHARES ARE PROVIDED. LEADING MARKET PARTICIPANTS ARE PROFILED, AND THEIR MARKETING STRATEGIES, ACQUISITIONS, AND STRATEGIC ALLIANCES ARE DISCUSSED. THE PRINCIPALS OF WINTERGREEN RESEARCH HAVE BEEN INVOLVED IN ANALYSIS AND FORECASTING OF INTERNATIONAL BUSINESS OPPORTUNITIES IN TELECOMMUNICATIONS AND ADVANCED COMPUTER TECHNOLOGY MARKETS FOR OVER 30 YEARS.

24 ABOUT THE PRINCIPAL AUTHORS ELLEN T. CURTISS, TECHNICAL DIRECTOR, CO-FOUNDER OF WINTERGREEN RESEARCH, CONDUCTS STRATEGIC AND MARKET ASSESSMENTS IN TECHNOLOGY-BASED INDUSTRIES. PREVIOUSLY SHE WAS A MEMBER OF THE STAFF OF ARTHUR D. LITTLE, INC., FOR 23 YEARS, MOST RECENTLY AS VICE PRESIDENT OF ARTHUR D. LITTLE DECISION RESOURCES, SPECIALIZING IN STRATEGIC PLANNING AND MARKET DEVELOPMENT SERVICES. SHE IS A GRADUATE OF BOSTON UNIVERSITY AND THE PROGRAM FOR MANAGEMENT DEVELOPMENT AT HARVARD GRADUATE SCHOOL OF BUSINESS ADMINISTRATION. SHE IS THE AUTHOR OF RECENT STUDIES ON WORLDWIDE TELECOMMUNICATIONS MARKETS, THE TOP TEN INTERNET EQUIPMENT COMPANIES, THE TOP TEN CONTRACT MANUFACTURING COMPANIES, AND THE TOP TEN TELECOMMUNICATIONS MARKET ANALYSIS AND FORECASTS. SUSAN EUSTIS, PRESIDENT, CO-FOUNDER OF WINTERGREEN RESEARCH, HAS DONE RESEARCH IN COMMUNICATIONS AND COMPUTER MARKETS AND APPLICATIONS. SHE HOLDS SEVERAL PATENTS IN MICROCOMPUTING AND PARALLEL PROCESSING. SHE HAS THE ORIGINAL PATENTS IN ELECTRONIC VOTING MACHINES. SHE HAS NEW PATENT APPLICATIONS IN FORMAT VARYING, MULITPROCESSING, AND ELECTRONIC VOTING. SHE IS THE AUTHOR OF RECENT STUDIES OF THE REGIONAL BELL OPERATING COMPANIES' MARKETING STRATEGIES, INTERNET EQUIPMENT, BIOMETRICS, A STUDY OF INTERNET EQUIPMENT, WORLDWIDE TELECOMMUNICATIONS EQUIPMENT, TOP TEN TELECOMMUNICATIONS, DIGITAL LOOP CARRIER, WEB HOSTING, WEB SERVICES, AND APPLICATION INTEGRATION MARKETS. MS. EUSTIS IS A GRADUATE OF BARNARD COLLEGE.

25 Return To: ORDER FORM WinterGreen Research, Inc. 6 Raymond Street Lexington, MA USA Phone: (781) Fax: (781) or (781) PLEASE ENTER MY ORDER FOR: Optical Component Market Opportunities, Strategies, and Forecasts ALL REPORTS ARE AVAILABLE IN EITHER PRINT OR PDF- PDF PRINT ENCLOSED IS MY CHECK FOR $2,800 FOR SINGLE COPY, $3,800 FOR WEB SITE POSTING PLEASE BILL MY COMPANY USING P.O. NUMBER PLEASE CHARGE MY MASTERCARD/VISA/AMERICAN EXPRESS CARD NUMBER EXP. DATE If charging to a Credit card you may the order form, but not the card information Fax or Call with credit card information - Do not send card number as - You may send the order as ADDITIONAL $375 (EXTRA COPY PRICE IN EFFECT ONLY WITH INITIAL ORDER) NAME TITLE SIGNATURE COMPANY DIVISION ADDRESS CITY STATE / ZIP TELEPHONE FAX PLEASE NOTE: RESIDENTS OF MASSACHUSETTS AND CONNECTICUT MUST INCLUDE APPROPRIATE SALES TAX SUBSCRIBERS OUTSIDE THE UNITED STATES MUST PROVIDE PREPAYMENT IN U.S. FUNDS