March 18, 2003 - Mountain View, CA - Suppliers in the otherwise mature 1310-nm transceiver market are threatened by excess competition and continuing developments, such as competitively priced 1550-nm transceivers, and commercialized long-wavelength VCSELs, uncooled devices, and quantum dot lasers. While the market is currently depressed by slack demand and lingering inventories, one scenario projects over $500 million in annual transceiver sales by 2007, according to a new market study release d by Strategies Unlimited. However, the report, High-Data-Rate 1310-nm Lasers: Datacom and Telecom-2003, says that there will be little relief for suppliers without consolidation, which has not really begun.

"This dynamic market has not had as high a profile as that of lasers used in WDM systems, but it represents a much larger volume of lasers, and it has been steadier through the downturn," says Tom Hausken, Optical Communication Components Practice Director at Strategies Unlimited. "This market appears mature, but the drive for even lower prices in the downturn combines with innovations in technology to upset the apple cart,"

Datacom and telecom components converge in the 1310-nm laser market. The lasers are used for short to intermediate reach SONET/SDH, Gigabit Ethernet, and Fibre Channel applications. The datacom world brings a strong focus on low cost, standards, and familiarity with 850-nm VCSELs. The telecom world brings a strong focus on performance and familiarity with Fabry-Perot and DFB lasers. Their convergence at 1310-nm makes the battleground especially interesting.

The outcome will depend on the ability of suppliers to execute on their promises to deliver price reductions. Long-wavelength VCSELs need a breakthrough in both technology and manufacturing cost to beat Fabry-Perot lasers. DFB lasers have better prospects, but are increasingly threatened by 1550-nm lasers. Suppliers will have to stay ahead of innovations to gain or maintain market share.

Most of the leading suppliers of 1310-nm transceivers are North American companies, while Japanese and Chinese companies dominate the merchant laser subcomponent markets. There is an excess of suppliers in this market, but start-up companies are generating many of the most intriguing innovations. Some of the best ideas may be yet to come, and many will likely come from start-ups.

High Data Rate 1310-nm Lasers: Datacom and Telecom-2003 reviews the applications, markets, technology, and suppliers of 1310-nm laser products in both datacom and telecom applications. It presents forecasts by format and application broken down by data rate , format, and reach, along with estimates of revenues and market shares of key suppliers. For more information, contact Strategies Unlimited on +1 650 941-3438 (voice) or +1 650 941-5120 (fax), e-mail at info@strategies-u.com, or check th e company's web site at www.strategies-u.com.

Founded in 1979, Strategies Unlimited specializes in market research and strategic consulting directed at photovoltaic components and systems, optical networking, optoelectronic, and RF/wireless semiconductor industries. The company, based in Mountain View, California, is a research unit of PennWell Corporation, a global media and information company serving the energy and advanced technology markets since 1910.

PennWell Corporation, established in 1910, is a highly diversified media and information company providing authoritative publications, conferences and exhibitions, databases, information products and Internet-based services to strategic markets worldwide. The company publishes over 45 periodicals including Laser Focus World, Lightwave, and Solid State Technology. These strategic markets include petroleum, electric power, electronics, communications, information-technology, water, fire servic es, manufacturing and healthcare. Its headquarters are in Nashua, NH, and Tulsa, OK, with remote offices and partners located around the globe.