[CAnet - news] Drak fiber market growth of 15% in Europe

For more information on this item please visit the CANARIE CA*net 4 Optical
Internet program web site at http://www.canarie.ca/canet4/library/list.html
-------------------------------------------

http://www.broad-group.com/publications/edfm.asp


DARK FIBRE MARKET GROWTH OF 15% FORECAST IN CENTRAL AND EASTERN EUROPE
London, October 12th 2005 - Dark Fibre growth of 15% per annum is forecast
in central and eastern European markets over the next five years, according
to a new report from BroadGroup.

In the report, European Dark Fibre Markets, a detailed analysis of current
and future deployment, pricing, products, and provider companies is
provided, against the background of changing trends, technologies and
emerging customer segments.

Pricing and cost structure of Dark Fibre forms a special focus of the
report, and the findings suggest that while price declines continue to be
sustained, the true value of Dark Fibre as a strategic asset will become
increasingly evident over the forecast period. The report found that while
traditional telcos in western European markets have largely halted the sale
of dark fibre, other "markets" are thriving away from established centres
and players.

Significant variance occurs in Dark Fibre prices across the entire region,
when measured on a per kilometre basis. The report suggests that Dark Fibre
prices will continue to decline, primarily due to the current consolidation
of fibre networks, but also the upgrading of new DWDM networks allowing
capacity of up to 40Mbps per fibre pair to be made available.

The forecast growth (by fibre km) over the period 2005-2010 for western
Europe and Central and Eastern Europe (CEE), is approximately 60%. As a
result, the share of Dark Fibre in the emerging markets as a proportion of
the whole of Europe will grow from the current level of 27% (end 2005) to
around 50% by 2010.

New products and services built around Dark Fibre are emerging, as the IRU
continues to decline in use. The report suggests for example that more
complex bundled products for enterprise users are emerging.

The report also comments on the need for a more efficient methodology to
sell wholesale Dark Fibre, which it contrasts with the market structure for
managed services. It also argues that there is a market for a connected
network, based on Dark Fibre, which can deliver much higher capacity using
virtual user paths at much lower cost.

Where the Czech Republic now appears as a mature market for Dark Fibre, the
report identifies new market growth in the CEE region, and identifies Russia
as a potential opportunity given the imminent restructuring that is due to
occur.

In this, the first assessment of Dark Fibre markets in Europe and Eastern
Europe for many years, the study identifies key players, reveals current
market trends, pricing, demand, emerging customer segmentation and forecasts
for future development and growth.

In understanding the availability and sometimes complexity of Dark Fibre,
the report profiles players across the entire region and points to the
essential differences in play and changing conditions prevailing in western
Europe and the CEE markets.

Unique insight is provided into contractual terms, and practical examples
are included of Dark Fibre purchase and lease arrangements and pricing.
Detail is also provided of market shift and the change in the product
spectrum, from IRU to bundled services.


The report suggests that significant growth is emerging in the changing
landscape of CEE markets. Here new players have emerged who are building out
fibre optic networks and creating new opportunities for Dark Fibre.

Suggesting the future strategic significance of Dark Fibre and emerging
opportunities in the enterprise sector, the report delivers forecasts for
future growth across the region.

Overall the report is of high value to wholesale departments, supplier
companies, as well as analysts in enterprise organisations, considering
current and future network planning, asset assessment and strategic
investments.


-------------------------------------
To SUBSCRIBE:
send a blank e-mail message to
[email protected]

To UNSUBSCRIBE:
send a blank email message to
[email protected]
-------------------------------------

These news items and comments are mine alone and do not necessarily reflect
those  of the CANARIE board or management.

-----------
[email protected]
www.canarie.ca/~bstarn
skype: pocketpro
SkypeIn: +1 614 441-9603


_______________________________________________
news mailing list
[email protected]
http://lists.canarie.ca/mailman/listinfo/news