DWDM has become one of the most widely accepted of technologies in the shortest time in the history of telecommunication. Even an innovation like fiber optics took a considerable interval of years to overcome skepticism before it ever really became widespread. DWDM has, in just a relatively few years, come in to existence, and now as we move into the second decade of the availability of DWDM, not only are there a lot of systems deployed, but also the true mark of an accepted technology has occurred in the development of several "next generation" DWDM systems.
The original DWDM systems used 2.5Gbps wavelengths. This was quickly surpassed by a conversion to 10Gbps wavelengths. In recent years (the last five or so) 40Gbps DWDM channels have become available, with four times the capacity of the previous standard. Now 100Gbps DWDM channels are becoming available, with 2.5 times the capacity of the 40Gbps channels.
In both cases, the 40 and the 100, there are two issues to challenge the widespread utilization of this obviously desirable capacity increase. The first question is one of economics. The 40Gbps units can be more expensive than the 10Gbps ones, but they can only be around 2.5 times more expensive (everything else being equal). Initially they were much more than this, but as new systems have added volume, the price has fallen, and they are becoming generally accepted. The other issue is one of transmission engineering. The fiber routes have to be carefully qualified to allow transmission of 40Gbps channels. Dispersion and loss are much more critical at the higher bit rates. Not all routes will qualify. These same two problems are being faced with the move to 100Gbps channels.
The report presents forecasts of North American and World DWDM market by size and channel speed.
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