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Huawei surpassed the US$1-billion quarterly revenue run rate for the first time.
Dell’Oro said in a recent report that the optical transport equipment market almost hit US$4 billion in revenue in the second quarter of 2016, representing year-on-year growth of 6%.
Furthermore, Huawei surpassed the US$1-billion quarterly revenue run rate for the first time and remained the market leader by revenue share. Dell’Oro noted that the only other vendor to better this revenue level was Nortel Networks during the telecoms boom cycle of 2000.
Jimmy Yu, vice president at Dell’Oro Group, said Q2 2016 represented another great quarter for the optical transport equipment market.
“However, it wasn’t an outstanding quarter. It was actually quite turbulent with a number of highs and lows,” said Yu.
On the positive side, revenue from deployments in China increased by 20% year-over-year. Other highlights included the fact that shipments of 100/200 Gbps DWDM wavelengths doubled year-on-year, while DWDM long haul revenue increased 18% and surpassed expectations.
On the more negative side, excluding sales to China, the optical transport market revenue stagnated with a zero percent year-over-year growth rate.
Average market prices for 100/200 Gbps DWDM wavelengths also declined at a higher than typical rate due to the rising sales in China and competition among equipment manufacturers. Meanwhile, WDM metro revenue increased by only 3% year-on-year and was below expectations.
