OC Vendor Revenues Hit New Highs in Q2 2016.

Revenues of the leading optical component vendors broke the $1.4 billion mark for the first time in the second quarter of 2016, and grew 27% compared to Q2 2015. Nine of the fourteen vendors tracked by LightCounting reported new record high revenues. Component demand was driven by a broad cross-section of market segments, including metro 100G in China, ROADM-based flexgrid builds in North America, and unrelenting hyper scale datacenter capacity expansion.

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100G products of all types experienced strong demand growth in the second quarter, with CFP-ACO, CFP-DCO, QSFP28 (CWDM and LR4), CFP2, and CFP4 each cited by one or another vendor as driving their revenue to new heights. Surprisingly, demand for technically mature 10G transceivers (in XFP and SFP+ packages) also showed very strong growth. 40 and 80 km reach 10G device shipments saw an especially large uptick, and one driver of those particular products demand is believed to be the expansion of aggregation and metro edge networks in China.

Despite the stellar growth at the component level, telecom networking equipment sales increased 14%, while datacenter storage and switching gear sales continued to trend downward, falling 5% compared to 2Q 2015. The disparity in growth rates between system and component vendors reflects the growing influence of white box system makers (not included in our reported datacom equipment figures), and the increasingly common sale of components directly to end-customers.

A key question for CEOs and their business planners is how long this surge in demand will continue. A number of vendors reported that popular product lines were capacity constrained in Q2, despite recent capital investments. In the past the component industry has fallen victim to ‘pipeline effects’, with demand multiplying as it moves down the supply chain, resulting in inventory corrections following large increases in demand. Today’s tighter coupling between component suppliers and end-customers should lower the likelihood of this happening again or reduce its impact, but it remains a risk.

Detailed shipments of 100GbE optics in the first half of 2016 are presented in LightCounting’s Quarterly sales database, released along with the Market Update Report. The database includes historical data on quarterly shipments and pricing of more than 100 products in 2014-2015. More than 20 leading optical transceiver suppliers contributed data to this report.

The report also presents an analysis of revenue and spending trends of top-tier telecom and Internet service providers, and the financial results of telecom and datacom equipment vendors, including the market shares of the leading suppliers of 100G DWDM transport equipment.

The cable types you should know.

The cable include the following types, it’s important for you to choose suitable one.

Simplex and zip cord

Simplex cable is one fiber, tight-buffered (coated with a 900 micron buffer over the primary buffer coating) with Kevlar (aramid yarn) strength members and jacketed for indoor use. The jacket is usually 3mm (1/8 in.) diameter. Zipcord is simply two of these joined with a thin web. It’s used mostly for patch cord and backplane applications, but zipcord can also be used for desktop connections.

Distribution cable

This contains several tight-buffered fibers bundled under the same jacket with Kevlar strength members and sometimes fiberglass rod reinforcement to stiffen the cable and prevent kinking. The cable is small in size, and used for short, dry conduit runs, riser and plenum applications. The fibers are double buffered and can be directly terminated, but because their fibers are not individually reinforced, these cables need to be broken out with a “breakout box” or terminated inside a patch panel or junction box.
Breakout cable

This cable is made of several simplex cables bundled together. This is a strong, rugged design, but is larger and more expensive than the distribution cables. It is suitable for conduit runs, riser and plenum applications. Because each fiber is individually reinforced, this design allows for quick termination to connectors and does not require patch panels or boxes. Breakout cable can be more economic where fiber count isn’t too large and distances too long, because is requires so much less labour to terminate.
Loose tube cable

This cable is composed of several fibers together inside a small polymeric buffer tube or tubes, which are in turn wound around a central strength member and jacketed, providing a small, high fiber count cable. This type of cable is ideal for outside plant trunking applications, as it can be made with the loose tubes filled with gel or water absorbent powder to prevent harm to the fibers from water. It can be used in conduits, strung overhead or buried directly into the ground. Since the fibers have only a thin buffer coating, they must be carefully handled and protected to prevent damage.
Ribbon cable

This cable offers the highest packing density, since all the fibers are laid out in rows, typically of 12 fibers, and laid on top of each other. This way 144 fibers only has a cross section of about 1/4 inch or 6 mm! Some cable designs use a “slotted core” with up to 6 of these 144 fiber ribbon assemblies for 864 fibers in one cable! Since it’s outside plant cable, it’s gel-filled for water blocking.
Armoured cable

Cable installed by direct burial in areas where rodents are a problem usually has metal armouring between two jackets to prevent rodent penetration. This means the cable is conductive, so it must be grounded properly.

Aerial cable

Aerial cable is for outside installation on poles. It can be lashed to a messenger or another cable (common in CATV) or have metal or aramid strength members to make it self-supporting.

SYOPTEK’S OTDR-110-SM OTDR

OTDR
SYOPTEK’S OTDR-110-SM OTDR is ideal for FTTx/access and CATV testing. It can test the length, fiber loss, connector loss and other physical characteristics of fiber. With up to 128000 sampling points, it can locate events on fiber cables precisely. It is really the tool of choce for the FTTx/access and CATV appliction installation and maintenance as well as for fiber R&D and SM network testing.

Features:
-Outdoor-enhanced 4.3 inch touchscreen
-Rugged design built for outside plant: durable, shock-proof, moisture-proof
-One-key operation: Full Auto,Expert and real Time OTDR modes
-Dynamic range of 34/32 dB
-Large storge capacity, maximum store up to 4000 OTDR traces
-Built-in Li-ion rechargeable batteries,provide >8 hours of continuous operation
-Support USB and RJ-45 network interface, convenient for test results transfer and file manage
-Visual Fault Locator integrated: visibly trace fibers or locate fiber bends or breaks
-One-year warranty

For more detail, please visit:  http://www.syoptek.com/otdr110sm-otdr13101550-3432db-pid-216.html

Fiber Optics Proving a Valuable Investment for the Data Center

Fiber-optic connectivity is on the rise in the data center as cloud uptake grows and a services-based technology climate becomes pervasive. Service providers are looking for ways to simplify deployment and delivery of new services and fiber optics offer a fast and efficient way to handle the onslaught of traffic and services.

According to ACG Research, the global market for optical data center interconnect (DCI) technology is set to reach $4.7 billion by 2019, growing at an accelerated 44.9 percent CAGR from 2014. Fueled by new and expanded data center deployments along with the need to automate and virtualize a host of functions, high-speed optical DCI connections meet demands for increased capacity, better resiliency and versatility.

Fiber-optic modules and cable types are also evolving to meet the unique needs of the data center. While the SFP module format is a standard for 1 GbE, the SPF+ module has evolved to support speeds up to 10 GbE, in the same small form factor as the original SFP module. And many switches support both SFP and SFP+, offering scalability and flexibility for data center operators.

Most fiber optic cables now include digital diagnostic monitoring or digital optical monitoring, which provide information about the optics to the platform the cable is connected to. Switches pull critical information like receive light level, transmit power and transceiver temperature in real time and report it to data center administrators. This enables quick and easy troubleshooting for a variety of optical link issues while also ensuring the cable and transceiver are operating up to capacity.

Two major data center fiber-optic announcements within the past week signify the massive uptake within the data center sector. U.K.-based cloud and hosting provider BSO announced a fiber-optic network between the New York City financial district and Chicago’s financial district, connecting several Equinix data centers along the way. Amazon is also exploring the best route for a planned fiber-optic cable system across the Pacific Ocean, which will connect data centers in the US, Australia and New Zealand. The cable is expected to go live in 2018.

25 billion connected devices by 2020 will ignite global fiber-optic connector demand

“The global telecom sector is growing immensely in emerging countries,” notes Asif Gani, a lead embedded systems research expert from Technavio. “Data traffic and the use of mobile broadband will increase in African countries such as South Africa, Botswana, Ghana, and Nigeria due to factors such as a beneficial environment for investment and customer services, during the forecast period. Latin American mobile network operators are also increasing their investments in network infrastructure due to burgeoning customer demand for mobile data.”

Moreover, the fiber-optic connector market in APAC is estimated by Technavio to grow at a CAGR of more than 12% during the forecast period. An increase in internet penetration in emerging APAC countries such as China and Japan, along with the need for high-speed internet connections, is driving the demand for cables and connectors in the region.

Similarly, the fiber-optic connector market in North America is estimated to grow at a CAGR of close to 12% during the forecast period. North America is expected to increase its adoption of fiber-optic connectors in data centers, enterprises, and security sectors. According to the analyst, the outlook for network equipment spending in North America remains robust and “is mostly driven by the move to cloud architectures and the never-ending quest to make IT infrastructure more secure.”

Finally, the fiber-optic connector market in Europe is estimated to grow at a CAGR of close to 13% during the forecast period. The report sees Europe making progress in FTTH penetration. “By September 2015, there were more than 35.9 million FTTH/B subscribers in Europe,” notes Technavio. “In 2015, there was continued structural growth in fiber rollout throughout Europe, which is expected to grow during the forecast period with increasing penetration rate.”

Global Fiber Optic Attenuators Market Drilldown

VOA( Variable Optical Attenuator)From QY Market Research, the Global Fiber Optic Attenuators Consumption 2016 Market Research Report is a professional and in-depth study on the current state of the fiber-optic attenuators market.

The report projects the growth rate of the fiber optic attenuators market during the forecast period, estimates the size and valuation of the industry in the coming years, and states the key drivers and restraints affecting the growth of the market, as well as current trends and opportunities.

The study’s analysis of key manufacturers analysis includes the following companies: DiCon Fiberoptics, Corning, AFL, OZ Optics, Alliance Fiber Optic Products (AFOP), Newport Corporation, EXFO, Amphenol Fiber Optic Products, Fibertronics, TE Connectivity, L-com, Thorlabs and EigenLight Corporation.

The report segments the worldwide fiber optic attenuators market on the basis of product type, market application, and end user segments. Relevant data gathered from regulatory authorities has been compiled to determine the growth of the segments.

SYOPTEK’S One-Click Cleaner MU/LC (Cleans LC,MU connectors)

one click cleaner lc
SYOPTEK’S One-Click Cleaner LC is an easy-to-use option for cleaning connectors in adapters. Simply insert the One-Click Cleaner into an

adapter and push until an audible “click” is heard. The One-Click Cleaner uses the mechanical push action to advance an optical grade

cleaning tape while the cleaning tip is rotated to ensure the fiber end-face is effectively, but gently, cleaned.

The One-Click Cleaner  is a must-have for field technicians. Small enough to fit in a shirt pocket and a great addition to cleaning kits.

Save your wrist – no more twist!
Read more

The Optical Component Business May Set a New Record in 2016

The average profitability of optical component and module suppliers was very close to zero over the last 5 years, despite strong demand for optics. Compared to every other level of the industry supply chain, profitability of the optical component manufacturers was the lowest by far.

Financial reports of several suppliers of optics started to show signs of improvement over the last 2-3 quarters. The average profitability of optical component and module vendors was 2% in 2015, compared to a loss of 1% in 2014. There is a good chance for reaching 5-7% profitability in 2016-2017 and setting a new record. The highest profitability achieved so far was 5.5% in 2010, preceded by more than ten years of heavy losses.

Net profit margins in the optical components value chain

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Source: Public financial reports

Several component vendors restructured their businesses in 2013-2014 and these efforts are starting to pay off now. Accelink, Applied Optoelectronics, Coadna, Neophotonics and Oclaro reported significant improvements in financial performance. Acacia joined the list of publicly traded vendors recently and holds the record with a 17% net margin for 2015. Finisar’s profits started to improve in the second half of 2015 and we expect this trend to continue.
Read more

SYOPTEK’S One-Click Cleaner SC (Cleans SC,ST,FC,E2000 connectors)

one click cleaner sc

SYOPTEK’S One-Click Cleaner SC  is an easy-to-use option for cleaning connectors in adapters. Simply insert the One-Click Cleaner into an adapter and push until an audible “click” is heard. The One-Click Cleaner uses the mechanical push action to advance an optical grade cleaning tape while the cleaning tip is rotated to ensure the fiber end-face is effectively, but gently, cleaned.

The One-Click Cleaner is a must-have for field technicians. Small enough to fit in a shirt pocket and a great addition to cleaning kits.

Save your wrist – no more twist!

Features:
• Ergonomic, comfortable design with single action cleaning
• Precise mechanical action delivers consistent cleaning results
• Effective on a variety of contaminates including dust and oils
• Automatically advance ensures each clean is performed with fresh cleaning tape
• Low cost per clean
• Compliant with EU/95/2002/EC Directive (RoHS)

Applications:
• Cleans connectors on jumpers and in adapters
• Cleans a wide variety on connector types: SC, ST, FC, E2000

Sales of 100G Telecom Optics are off to a Strong Start in 2016

Suppliers of 100G optical components for telecom applications first reported a sharp increase in demand in Q4 2015 and set new sales records for these products in Q1 2016. Data on shipments of 100G DWDM ports by Huawei, shown in the figure below, illustrates the increased demand.

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Huawei shipped more 100G DWDM ports than five of its competitors combined in Q1 2016. Three of these five competitors also reported increased shipments of 100G optics with the remaining two posting seasonal declines, after a strong Q4 2015. Nokia (Alcatel-Lucent) leads the market in shipments of 200/400G DWDM ports.

Significant fraction of the 100G DWDM ports shipped by Huawei in Q1 2016 went to China Mobile, but demand from other customers is picking up as well. Bidding results for Q2 2016 indicate a sharp increase in orders for 100G DWDM ports from China Unicom.

It is interesting that demand for 100G optics from China is setting new records, while the capex of the Chinese service providers is expected to decline by 20% in 2016. Reduced spending suggests that the initial phase of major infrastructure upgrades is reaching completion, but deployments of DWDM optical ports tend to continue for many years after that. Large service providers tend to add capacity incrementally by lighting up more DWDM ports in response to increasing network traffic. Read more