What is the prospect market
of fiber optics communication
industry?
POTENTIAL FUTURE OF
FIBER OPTICS
COMMUNICATION?
EE566 Class Presentation
Jia-Lock WONG
September 10, 2003
POTENTIAL FUTURE OF
FIBER OPTICS
COMMUNICATION?
Introduction
History of Companies
Featured Products
Revenue and Market Overview
Job Market
Improvements and Suggestions
Conclusions
Introduction
Fiber Optics Communication
Equipments:
Optical Switch
Optical Multiplexer
Optical Amplifier
Fiber Optic Cables
Optical Transport
Equipment
And so on……..
Optical Switch
Optical Multiplexer
Optical Amp
Three Giants
LUCENT (www.lucent.com)
NORTEL (www.nortelnetworks.com)
CISCO (www.cisco.com)
Profile & History
Lucent Technologies Inc.
Symbol
LU – (S&P 500)
Employee ~ 47,000
s
HQ
CEO
New Jersey, US
Patricia Russo, 50:
(salary: $14.28mil/yr)
Revenue
FY03: $8.6billion
Profile & History
Lucent Technologies Inc.
1996
Spun off from AT&T. Established through
forming the soon-to-be-spun–off system
and technology unit of AT&T, such as
Western Electric.
1996 –
2001
Progressed through acquisitions such as
Ascend, which made Lucent leading
provider of data networking.
2001 –
2003
Focus on the largest communication
provider, streamlines its portfolio to deliver
wireline and wireless products.
Profile & History
Lucent Technologies Inc.
•
•
•
Owns Bell Research Lab (> 40,000 patented
inventions since 1925)
• First Optical Switch
• Fastest Transmission System over Fiber
NO. 2 manufacturer in Optical Communications
NO. 1 CDMA Devices manufacturer
Featured Products
Lucent Technologies Inc.
Expertise in voice switches,
wireless base stations, fiber optic
cables and transmission
equipments
Wavestar TDM 10G Multiplexer
Transmit 12,000 encyclopedia volume in
a second from New Jersey to Califronia
Featured Products
Lucent Technologies Inc.
Dominates wireless broadcasting
equipments in North America such as GSM,
TDMA and CDMA system
Profile & History
NORTEL Inc.
Symbol
NT (NYSE)
Employee 39,690
s
HQ
CEO
Ontario, CANADA
Frank A. Dunn, 49
Salary: $849,000/yr
Revenue
FY03: $9.6bil
Profile & History
NORTEL Inc.
1874
Mr. Graham Bell from Brantford, Ontatio
patented his first phone in Canada. Patent rights go
to the National Bell Telephone Company (U.S.) and Bell
Telephone Company of Canada.
1882
Due to Canadian patent rights problems, Bell Telephone
Company of Canada launches its own manufacturing
division in Montreal.
1914
The Northern Electric Company Ltd
established. US company Western Electric owns 44
percent, and Bell Canada owns 50 percent.
1966
Researchers at Bell-Northern Research (BNR) publish
the first paper considering the possibility of using glass
fibers to carry information.
Profile & History
NORTEL Inc.
1972
Northern Electric opens its first U.S. plant in Port Huron,
Michigan.
1976
Northern Electric changes its name to Northern
Telecom, unifying international subsidiaries under the
corporate umbrella.
1989
NORTEL becomes the first telecom supplier to
announce a complete family of SONET-standard fiberoptic products.
1999
Nortel Networks breaks its own speed and capacity
record by demonstrating Optical Internet systems that
can carry up to 6.4 Terabits per second (Tbps) of Internet
and other traffic over a single, hair-thin strand of fiber
Profile & History
NORTEL Inc.
2000
Bell Canada (BCE) distributes 94 percent of its Nortel
Networks stake to shareholders. The corporation is now a
totally independent global company.
2000 2003
Specialized in tunable lasers for optical networks and
optical switching through acquisitions.
Featured Products
Nortel Inc.
No.1 Canadian Fiber Optic Firm
Nortel Networks was the first to market
• SDH and SONET 2.5 Gbit/s Time
Division multiplexing (TDM)
• Wave Division Multiplexing (WDM)
• 10 Gbit/s TDM and WDM Add/Drop
Multiplexing (ADM)
• High Speed Optical Transmission
Technology OC-192
Profile & History
CISCO Inc.
Symbol
CSSO (S&P 500, Amex Internet, Nasdaq
100)
Employee 34,466
s
HQ
CEO
San Jose, CA
John Chambers, 53
Revenue
FY03: $20.40bil
Profile & History
CISCO Inc.
1984
CISCO System Established by computer
scientists from Stanford University.
1990
Publicized in NASDAQ.
1995
John Chambers appointed as CEO and
president of the CISCO
1998
Initiated IP network solutions and Internet
Business Solutions
2000
Pioneer in computer networking used by
big corporations.
Featured Products
CISCO Inc.
Dominates data networking
used by big corporation, 80%
of all internet traffic using its
router
Specializes in IP based
product such as digitizing
voice mail and display as
email form.
Featured Products
CISCO Inc.
The ONS 15454 DWDM
allow the user to scale to 80Gbps
leveraging 32 wavelengths passive
optical filter solutions
Latest Annoucements
Lucent Technologies
SEP 2003
AT&T Selects Lucent Technologies to Provide NextGeneration SONET Throughout Network
Nortel Networks
JUN-SEP 2003
Verizon Wireless Gives $1B Deal to Nortel
CISCO
September 2003
Cisco Systems Unveils Color IP Telephone
Cisco Delivers Fibre Channel-Based SAN Extension Over
SONET/SDH on the Cisco ONS 15454 MSPP, becoming
Industry’s Top Platform for deploying FCIP and SAN
Revenue Estimates
Company
Current Year
2003
Next Year
2004
Sales
Growth(%)
Lucent Tech
$8.6 bil.
$9.1 bil.
5.2%
Nortel
Network
$9.6 bil.
$10.1 bil.
5.9%
CISCO Inc.
$20.40 bil.
$22.6 bil.
11.1%
Provided by: AmericanTrade
Analysts
Stock Values
Company
Closing Prices As of
9/8/2003
Lucent
Technologies Inc.
$2.22
Nortel Network
$4.10
CISCO Inc.
$20.59
Comparisons Of Stock
Values
Sales Miscalculations and Over
Expansions in Long Haul Optical Networks
WE are here
Job Market - Wages
Hourly Wages in California
Entry Range: $7.00 - $22.00
After 3 Years with Firm:
New to the job - Experienced: $10.00 $28.75
$12.50 - $30.00
Job Market
Best Locations for Job Hunting
OTHERS
17%
MD
2%
CA
31%
WA
2%
DC
3%
NJ
4%
SC
4%
PA
8%
NY
5%
VA
7%
FL
6%
MA
6%
MN
5%
Sampled from 1000 recently
posted Fiber Optic Comm.Jobs
on monster.com,
careerbuilder.com and
jobsearch.com