Study: Demand for wavelength services strong

An increased consumer demand for high-capacity, high-speed bandwidth has fueled the fire behind wavelength services, a recent Frost and Sullivan Inc. report says.

According to the report, titled "Wavelength Services-Cost Efficiency Sparks Boom," U.S. wavelength services technology totaled US$360 million in revenues in 2000, the first full year of deployment. Frost and Sullivan estimates revenues for the sector will grow to around $2 billion by 2007.

Wavelength services are services that use optical wavelengths to transport data at high speeds. They provide service providers with an alternative to lighting up dark fiber, Frost and Sullivan says, conserving fiber resources.

Frost and Sullivan reports that the wavelength services market will continue to grow despite the fall of some competitive local exchange carriers (CLEC). The report says that CLECs traditionally have depended on interexchange carriers for long-distance transport and regional Bell operating companies for local voice and data services.

Now, some wavelength service providers are forming partnerships with other optical networking service providers in both the long-haul and metro markets, the report says.

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