Source: LightCounting

New Report Addresses China's Impact on the Global Optical Communications Industry

EUGENE, OR and SHENZHEN, CHINA--(Marketwire - November 15, 2010) - A new study titled "China: The New Land of Opportunity" presents detailed analysis of the optical communications industry in China and its impact on the global market. This report is published jointly by LightCounting, LLC, a United States-based market research company, and Infostone Communication Consultant Co. Ltd. (ICCSZ), a consulting company based in China.

China's impact on the global optical communications industry over the last decade has been remarkable. Increasing Chinese investments in networking infrastructure helped to sustain the global telecom industry during the downturns of 2001-2003 and 2008-2009. Successes of Huawei and ZTE have transformed the landscape of the networking equipment market. Significant portions of manufacturing of optical components and modules have moved to China since the telecom bubble burst in 2001 and helped to foster numerous domestic suppliers.

As China's national network system matures, slowdown in networking infrastructure deployments is inevitable. However, the progress made sets an example for a number of emerging economies that are likely to increase investments in networking infrastructure as their economies develop. Recognizing this trend, Chinese equipment manufacturers, lead by Huawei, are increasing focus on these developing economies that are prime for growth.

Huawei reached the number-one position in optical networking two years ago, displacing Alcatel-Lucent, and it is likely to surpass Ericsson as the largest supplier of wireline and wireless equipment this year. Can Huawei maintain its dominance? This is one of the issues addressed in the report.

Chinese optical component and module vendors are growing fast, but they still remain smaller than western competitors. Continuing dominance of the western component and modules suppliers is supported by their extensive manufacturing facilities in China, making their manufacturing cost comparable to domestic vendors. The western companies have also an advantage in global presence, while Chinese suppliers are mostly selling into their own domestic market despite efforts to increase global presence.

The report offers analysis of challenges and opportunities for Chinese service providers, equipment manufacturers, and optical component and module vendors. It also includes profiles of major optical communication equipment, module, and component vendors based in China. More details are available at www.lightcounting.com/reports/chinareport.html.

About LightCounting, LLC
LightCounting is a market research company focused on in-depth study of the optical communications market. Our research covers the whole supply chain including components, modules, systems, and their applications. Most of our analysis is based on confidential sales data provided exclusively to LightCounting by leading component and module suppliers.

For more information, visit www.LightCounting.com.

About Infostone Communication Consultant Co, Ltd. (ICCSZ)
ICCSZ is a consulting company specializing in optical communications. Based in Shenzhen, China, ICCSZ offers market forecast, strategy analysis, and management training for domestic and overseas optical component manufacturers.

For more information, visit www.iccsz.com.