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Technical Strength Has Become the Key to Market Competition

Author: SOPTO

1/2/2014, compared with varieties of formats coexist of 40G times, each manufacturer has its advantage and feature, the development of 100G technology is more focused, in the early stage, its technical standard has been united, the development of the whole industry is smooth going. Under the background of explosive growth of data traffic, since 2010 some manufacturers put 100G technology forward for the first time, it has been part of the global operator network in pilot or application after 2 years, system vendors early into this market occupied their market quickly, with Al Carter lucent as the representative of the first mover firm, achieved rapid development in market early development, also laid effective foundation for the follow-up market expansion.

Following with the rapid expansion of 100G market, mainstream system equipment manufacturers follow up one by one, especially to invest more in key technologies of 100G, current including Huawei, Cisco, ZTE equipment manufacturers have announced their launch of 100G system respectively, leading companies as Huawei have even launched 400G and 1T system, whole market participators is increasing, however, because relevant properties of each respective product and market acceptance is different, the whole industry chain is obviously divided into two echelons, Huawei, Cisco successively occupy the first echelon, more than 10% of market share, and the second echelon are in rapid expansion. Whole 100G market is still in rapid expansion, the global market is constantly shuffling, but a undeniable thing is, early manufacturers such as Huawei, Alcatel lucent in 100G system, with its leading technology strength, maintained a momentum of rapid expansion, technical threshold of 100G is still high.

·Independent research and development to lay the first mover advantage

100G market rapid maturity, even overcome whole industry expected, impetus of market came mainly from system equipment manufacturers, because early shipments of 100G is limited, the launch time of general chip manufacturers and device manufacturers in the 100G commercial product is late, which resulted in a limited 100G chip and device shipments, restricting the equipment shipments of system manufacturer, and part later manufacturers had to slow down introduction time in the 100G system equipment. And Huawei, Alcatel lucent launch related chip 100G in the early through independent research and development, not only can keep good compatibility with system equipment, effectively realize the equipment upgrade, at the same time significantly faster than the other manufacturers in the whole equipment shipments. A expert of Al Carter points out that, along with the rapid expansion of 100G market, supply of various manufacturers chip directly affects the overall system equipment shipments, even to its share of global market.


40G QSFP+ Module


Not only that, at the early stage of 100G market competition, overall performance of 100G system directly determines the collective purchase sequence which manufacturers can enter the operator. From the collective purchase of domestic operators 100G, China Mobile made it clear to start 100G OTN devices directly in the deployment of early equipment, which is also recognized as the main trend of future backbone network, a research report said, there will be 90% operators using OTN network in next 3 years, in the large bandwidth Era, OTN is playing a more and more important role. However, mode that directly come across WDM to launch 100G OTN behaves a little more radical, because China Mobile doesn’t have large number of 40G WDM system to make its burden smaller, thus can deploy cutting-edge technology earlier than China Telecom and China Unicom. And from the equipment support of original manufacturers, not all manufacturers can effectively support commercial use of 100G OTN, eventually China Mobile only choose Huawei and Al Carter lucent as part of its first 100G supplier.

Technology updates of leading manufacturers are accelerating the pace. It is understood, at the beginning of 2013, Huawei first released the second generation of 100G soft decision scheme, using self-researched core module ODSP, realizing no relay transmission of 4000 km, again put 100G into new stage of maturity. In 2013 June, Huawei made implementation of commercial of the second generation soft decision, becoming the milepost of 100G development again.

·Commercial experience become technology assessment standard

Although the main optical network equipment makers have announced that its 100G system equipment has commercial ability, at the same time, some manufacturers also announced that its 400G 1T system equipment has been released, but viewing from the current introduced attitude of operators, whether the related equipment have commercial experience or not directly determines whether operators will introduce it into present network or not.

Viewing from the current commercial situation of vendor, Huawei have the most abundant commercial experience. It is understood, in Asia Pacific market, both Huawei and Alcatel lucent have plenty of commercial case. At present Huawei has built more than 100 100G commercial network in the world, this year Huawei get leading share in China Mobile country project and China Unicom Network experimental network project, at the same time, won 100G cooperation projects of Italy TI Sparkle, Etisalat, Singapore Telecom, Brazil Vivo, India Tata, Poland Polkomtel overseas.

At the same time, Alcatel lucent has further expanded its layout of 100G, their 400G system equipment began to be applied over the world. In September this year, Al Carter Lucent and Saskatchewan communications provider SaskTel together announced that they have succeed in completion of optical fiber data transmission test in 10G online net, realize data transmission rate of up to 400Gbps; in December, Al Carter Lucent and leading Australian Internet service provider Nextgen jointly announced, Asia and Australia have successfully completed the first 400G data transmission test in the existing optical fiber link.

At the same time, system manufacturers in the second echelon also are rapidly developing 100G system equipment commercial.

On the other hand, in the aspect of 100G chip and device, global main chip manufacturers and device manufacturers have started large delivery. However, related products, optical devices and chip are still monopolized by foreign manufacturer, domestic optical device manufacturers still have a long way to go.

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