Huawei Leads in Optical Networking Growth

Ovum today announced its preliminary 3Q09 results for global optical equipment networking vendors. The global optical networking (ON) market, led by strength in Asia-Pacific markets, totaled $3.6 billion, down 4 percent sequentially and down 10 percent compared with 3Q08.

“Regional results were mixed: the bleeding in North America appears to have stopped; Asia-Pacific, led by China, continues to exceed expectations; and EMEA and SCA remain moribund,” said Ovum’s VP of optical networking, Dana Cooperson, in a statement. “Several vendors are benefiting from China’s ON spending spree, which is being propelled by 3G mobile builds, but none more than Huawei. On strength that extends far beyond its home market, Huawei has taken the top spot over long-time leader Alcatel-Lucent in the $15.2 billion market.”

With most of the major vendors’ 3Q09 results reported (Nortel being a major exception) and checked by Ovum, its preliminary analysis indicates that Huawei’s global revenues surpassed long-time leader Alcatel-Lucent’s revenues by over $100 million for each of the first three quarters this year. The Chinese vendor now leads the market by almost 3 percentage points. ??Of the top ten vendors, only Huawei and ZTE reported year-over-year revenue improvements, while quite a few showed sequential growth (Cisco, Fujitsu, NEC, Tellabs).