| Overview: 
 
 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:
 
 Table of Contents Table of Figures 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    |