Backbone Optical Investments Drop, Wireless Climbs

Service provider spending on optical gear dropped 23 percent globally in the first quarter of 2012, compared to the fourth quarter of 2011, Infonetics Research reports, with the biggest declines occurring in all regions except North America. 


"While optical hardware revenue trends in all world regions were not positive in the first quarter of 2012, the most alarming development is that year-over-year in EMEA, particularly Europe,  spending on WDM optical equipment decreased faster than spending on legacy SDH equipment," notes Andrew Schmitt, principal analyst for optical at Infonetics Research.


That might indicate a longer-term change, not just a quarterly fluctuation, Schmitt says. Of course, it is not uncommon for capital investment in various forms of infrastructure to fluctuate a bit, especially in the long-haul networks, where new construction projects drive spending above baseline "maintenance" and "upgrade" investments.