The metro optical network growth continues so far unabated by the slowing economy. Main drivers for this are
enterprise connectivity, triple play and high-bandwidth hungry internet applications. Every day more and more of the
population is connected with a projection to have five (5) billion people connected by 2010 and an overall traffic
increase of one-hundred fold by 2015.
While key applications drive these deployments, it is the decrease in network cost that is the bandwidth enabler.
Stagnant average revenue per user (ARPU) makes further reduction in the total cost of ownership key. As costs progress
due to volume and technology maturity, prices drop and a stronger demand for bandwidth is generated in the market.
Today the 10G Ethernet LAN PHY services drive this growth and the cost for 10G hardware continues to improve
further enabling profitable growth. While 10G is the key transport technology today, there is a push to bring higher line
rates into the metro deployments. 40G is currently undergoing a mass adoption in the long-haul core networks. The
volumes in long-haul network deployments are driving down the costs making it a viable evolution path for the metro
networks over time.