Synchronous Optical Network (SONET) is a family of fiber-optic transmission rate from 51.84 Mbps to 13.22 Gbps, allows interworking of transmission products from multiple vendors. Synchronous Optical NETwork is an optical transmission interface standardized by ANSI (or more specifically Committee T1). It defines a high speed digital hierarchy using fiber optic cable that can achieve speeds up to 13.22 Gbps. Synchronous Optical Network and Synchronous Digital Hierarchy (SONET/SDH) market will continue to thrive. The market for SONET/SDH systems will zoom from $11.89 billion in 1999 to $31.26 billion in 2004, according to Cahners In-Stat Group. SONET/SDH market growth will be strong through 2002, but beginning in 2003, it will slow as competing solutions such as Dense Wave Division Multiplexing (DWDM) gain ground, In-Stat says. SONET and its European equivalent, SDH, were designed before the explosion of data services and were optimized to transmit voice signals. SONET/SDH's data solution is very inefficient, its systems are not easily scalable and are time-consuming to provision. SONET is an entrenched technology, however, and changing the infrastructure to other technologies would be a massive, expensive endeavor. The technology, therefore, will remain important to several market segments: Interexchange carriers (IXCs) - Commonly called long distance carriers, IXCs will continue to use SONET as all long-haul transport must pass through two metro SONET rings, at the beginning and end of the signal transmission. Incumbent Local Exchange Carriers (ILECs) - The Regional Bell Operating Companies (RBOCs) that dominate local calling services will continue to use SONET in metro markets where it is deeply entrenched. Competitive Local Exchange Carriers (CLECs) - Some focus on data service, but like ILECs, CLECs do business in metro markets that will require the use of SONET for many years to come. Internet Service Providers (ISPs) - The growth of the Internet and e-commerce will require the use of SONET/SDH systems for effective and efficient service guarantees. In Europe, SDH technology will thrive as it serves the booming telecommunications industry after its recent deregulation. Like the North American IXC market, the Pan-European market uses SDH systems at the long haul/metro transition. SDH vendors will find a wealth of opportunity as carriers look to outperform competitors for an early market lead. European cable TV will be another growth market for SDH vendors. Though governments have been slow to open up the cable TV industry to competition, many European cable companies have begun to prepare for deregulation by enhancing channel offerings. Because bandwidth demands are on the rise, cable companies are testing both DWDM and SDH solutions. The SONET/SDH market has many vendors battling for a limited number of carriers. The winners in the SONET/SDH market will: Significantly decrease equipment size and cost. Support not only voice transmissions, but also data and video efficiently. Seamlessly integrate SONET/SDH transmissions onto the DWDM protocol, the main objective of next generation, intelligent optical networking equipment and systems. Provide reliable, timely customer service. Be first to market with quality products