Global Optical Networking Equipment Spending Falls

Comments
Print

Global optical networking (ON) equipment spending in the second quarter of 2012 declined, according to a new report.

Despite growth of 6 percent and 19 percent in Asia-Pacific and South & Central America (SCA) since 2011, Ovum said growth won't get a big spending boost in this year's fourth quarter.

The report also revealed that the market continues to disappoint, but some vendors are able to take advantage of growth pockets better than others.

Dana Cooperson, vice president and practice leader of Network Infrastructure at Ovum, said global spending dropped 8 percent since 2Q11. He added that a 19 percent spending decrease in North America and EMEA led to this drop.

“It will be very challenging to make the 2 percent growth we’ve predicted for the year," Cooperson said. "Although as Asia-Pacific and SCA become a larger part of the global market, spending is shifting strongly to the fourth quarter."

Because third-quarter spending usually declines from the second quarter, Ovum does not foresee improvements for the next quarter.

Comments
comments powered by Disqus