ROADMs are systems that allow the very flexible, remote selection of wavelengths transiting a given intermediate node on a fiber network for dropping and/or adding. They allow access to any of the wavelengths going through a node (or, in more limited ROADM implementations, access to a set of the transiting wavelengths) for use of the data on the chosen wavelength and the possibility of adding to, or modifying, the data on that wavelength for transmitting it on to the next node(s). They also allow the interconnection of multiple intersecting networks (multiple degree nodes) at the optical level, avoiding the expense and complexity of OEO conversions to achieve the interconnection. The device offers the promise of substantial savings in operations costs, and many operational benefits.

Now in mid-2010, the ROADM has become a standard part of long-haul networks — to be included as a matter of course in any new network, and they have become a major update objective for existing networks. They have also become important to metro networks. In addition to the maturity of application, ROADMs have also developed a third-generation technology base — the wavelength selective switch (WSS) — that has quickly become the gold standard. Now the new application that is driving cost savings is the use of low-cost ROADMs on the edge of the network.

This report provides:

• Forecasts out through 2015 for all metrics.
• Forecasts that fully recognize the impact of the 2008-2009 Recession and the expected recovery.
• Forecasts that recognize the major role that ROADMs have played and are playing in the deployment and expansion of the major Advanced Access Architecture networks – FiOS and U-verse.
• A full statement of expected economic recovery beginning in mid-2010.

In the eight or so years of previous ROADM history, we have witnessed a continuum of advancing capabilities and technologies in ROADMs. In the last 2-3 years, several companies have introduced products that are Edge ROADMs (although the name is only beginning to be standardized) with reduced capabilities, and reuse of existing technology on a cost-reduced basis.

This report is being issued as many of our carriers are either in the process of planning or of beginning massive upgrades to their networks. This report will be an indispensable guide to all who are, or want to be, involved in the markets resulting from these upgrades. System vendors, component vendors, carriers, investors, and others will all gain from the clear, extensively illustrated text in this report.

A number of technologies are involved in the ROADM. The report presents several different architectures, with an emphasis on edge ROADMs and WSSs, but also including the switch version and the broadcast version. Technologies involved in each approach are described. The vendors associated with the various approaches are identified, and market forecasts are developed on a component/subsystem level as well as on a system level.

There are many applications for the ROADM. The applications of various-degree nodes ("two-degree nodes," for example, have two fiber routes, three-degree have three, etc.) that are common in the network are depicted. As will be noted, some of these applications will have particular use in merging the long-haul networks of the IXCs and the metro networks of the RBOCs. The new application in this report is the Network Edge.

The main market driver for ROADMs is the desire by the carriers to save operating expenses. The new video thrusts by the major combined RBOCs are a new driver to ROADM deployment. These companies are in the process of deploying nationwide networks to deliver video on their fiber access local networks. ROADMs are the perfect adaptation to control these video distribution services. In addition, the forecasted increase in wavelength services is going to greatly facilitate the deployment of networks based on ROADMs. Finally, the ever-increasing demand for bandwidth by the end user is mandating that ROADMs penetrate the network from core to end.

TABLE OF CONTENTS

The Lightwave Network Series of Reports

The Lightwave Network

The Lightwave Series of Reports

General Reports on the Network
  General Market Reports
  Specific Systems Reports
  Executive Summary
  Introduction
  This Report

Achieving SONET-like Control in Optical Networks

Technologies for ROADMs

Switches and Blocker
  MEMS
    Approaches to MEMS
         Digital Approach
         Analog Approach
         One Dimension MEMS
  Grating Light Valve (GLV)
  Planar Lightwave Circuits
  Liquid Crystal
  LQ Uses
  Fiber Bragg Grating

Mux/Demuxes
  AWG Devices
  Etched Waveguide Devices (Planar Waveguide Devices)
  Tunable Lasers

Monitor Points

Technology Summary
  Summary of Features by Clas
  Importance of Tunable Lasers
    Developers and Vendors of Tunable Lasers
    Market Forecast
    Forecast Methodology
    Model for Forecast Core and Metro ROADMs
        Assumptions of Model
    Model for Forecast -- Edge ROADMs
  Forecast UpdateBackground for these forecasts
  General Economic Background
        Telecom Economic Background
        Possible Positives for Telecom in 2010

Forecast 2010

Systems
  Systems -- US Forecast
  US Edge ROADMs

Systems -- World Forecast
  World System Forecast
  World Edge Systems Forecast

Components
  Assumptions for Component Forecasts
    Pricing for Components
  Components -- US Forecast
    Blocker US Market Forecast
    Mux/Demux US Market Forecast
    Tunable Laser US Market Forecast
    Tunable Filters US Market Forecast
    Switch Points US Forecast
    Monitor Points US Market Forecast
    WSS Units US Market
    Total Components US Market Forecast
  Components -- Global Forecast
    Blockers Global Market Forecast
    Mux/Demux Global Market Forecast
    Tunable Laser Global Market Forecast
    Tunable Filter Global Market Forecast
    Switch Points Global Market Forecast
    Monitor Points Global Forecast
    WSS Units World Market
    Components Total Global Forecast

ROADM Components Vendors
 Major Contracts

Component/Subassembly Vendors

Component/Subassembly Vendor Listing
  AC Photonics, Inc.
  Active Optical MEMS, Inc.
  Aegis Lightwave, Inc.
  Agiltron, Inc.
  Alliance Fiber Optic Products
  ANdevices (Enablenace Technologies)
  AOC Technologies
  Auxora, Inc.
  Avanex Corporation
  Avo Photonics
  Capella Photonics
  Clarendon Photonics
  CoAdna Photonics
  Corning
  Corrigent (Owned by Orckit)
  Cube Optics AG
  DiCon Fiberoptics
  DuPont Photonics Technologies
  Emit Technology Co. Ltd.
  Enablence Technologies
  Engana Pty. Ltd. (Optium Corp.) (Now owned by Finisar)
  Fibernett Co. Ltd.
  Finisar Corporation
  Kamelian (Amphotonix Ltd)
  Lambda Optical Systems
  LightComm Technology
  LIGHTCONNECT Inc (NeoPhotonics)
  Lightwaves2020 Inc.
  Lynx Photonic Networks
  Mahi Networks (Meriton -- Now known as Xtera)
  Metconnex (JDSU)
  NeoPhotonics
  Network Photonics (Not in Operation)
  O-Net Communications Ltd.
  Oplink Communications, Inc.
  Optium Technologies (Finisar Owns this Now)
  Optoplex
  OpTun Inc. (NEoPhotonics)
  SDO Communications Corp.
  Shenzhen Hi-Optel Technology Co. Ltd.
  Silicon Light Machines (Cypress Semiconductor)
  Sinclair Manufacturing Company
  SpectraSwitch
  Stratos International, Inc. (Now OwnED BY Emerson)
  TeraXion Inc.
  TheFibers Inc.
  Valdor Fiber Optics
  Xerox

Tunable Lasers Vendors List
    ADC
    Altitun AB (ADC)
    Bookham (New Focus, Inc. -- Now part of
    Newport Family of Companies)
    Corning
    Hewlett-Packard
    Intel
    JDS Uniphase
    Marconi
    Paxera
    Pirelli Broadband Systems
    Santur

Appendix III -- Listing of Acronyms

 
TABLE OF FIGURES

Figure 1: Lightwave Network
Figure 2: Components in the Report
Figure 3: Detailed PLC ROADMs
Figure 4: Detailed Blocker ROADM
Figure 5: MEMS Layout
Figure 6: Sketch of Two Dimensional MEMS
Figure 7: Sketch of Multi-Dimensional MEMS
Figure 8: 1D MEMS
Figure 9: Sketch of Liquid Crystal Technology
Figure 10: Planar Waveguide Demux
Figure 11: Technologies' Summary
Figure 12: Table of Switch Classes -- Summary of Features
Figure 13: Example of Use of Tunable Laser in Transparent OXC
Figure 14: ROADM System Unit Forecast -- US
Figure 15: US Market -- Change in Predominant Type of ROADM over Time
Figure 16: US Edge ROADMs Systems
Figure 17: US ROADM as a Percent of Global Usage
Figure 18: ROADM Systems -- Global
Figure 19: World Market -- Change in Predominant Type of ROADM over Time
Figure 20: US Portion of World Edge ROADM Market
Figure 21: World Systems -- Edge ROADMs
Figure 22: US Systems by Type
Figure 23: PLC Version of the ROADM
Figure 24: Broadcast/Blocker Version of the ROADM
Figure 25: WSS Typical for Component Count
Figure 26: Component Count for Each Type of ROADM
Figure 27: Component Price Table
Figure 28: Components -- US Units
Figure 29: Blocker US Market Forecast
Figure 30: Mux/Demux US Market Forecast
Figure 31: Tunable Laser US Market Forecast
Figure 32: Tunable Filters US Market Forecast
Figure 33: Switch Points US Market Forecast
Figure 34: US Market -- LC Switch Points
Figure 35: US Market -- MEMS Switch Points
Figure 36: Monitor Points US Market
Figure 37: US Market -- WSS Units
Figure 38: Total Components US Market Forecast
Figure 39: Components Units Global Forecast
Figure 40: Blocker Global Market Forecast
Figure 41: Mux/Demux Market Forecast
Figure 42: Tunable Laser Global Forecast
Figure 43: Tunable Filters Global Market Forecast
Figure 44: Switch Points Global Market Forecast
Figure 45: World LC Switch Point Market
Figure 46: World MEMS Switch Point Market
Figure 47: Monitor Points Global Forecast
Figure 48: World WSS Units Market
Figure 49: Components Total Global Forecast
Figure 50: U-Verse: FiOS ROADM Vendors
Figure 51: Summary Table -- Sub-system Vendors