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
Employees
HQ
CEO
LU – (S&P 500)
~ 47,000
New Jersey, US
Patricia Russo, 50:
(salary: $14.28mil/yr)
Revenue
FY03: $8.6billion
Profile & History
Lucent Technologies Inc.
1996
1996 –
2001
2001 –
2003
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.
Progressed through acquisitions such as
Ascend, which made Lucent leading
provider of data networking.
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)
Employees 39,690
HQ
Ontario, CANADA
CEO
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)
Employees 34,466
HQ
San Jose, CA
CEO
John Chambers, 53
Revenue
FY03: $20.40bil
Profile & History
CISCO Inc.
1984
CISCO System Established by computer
scientists from Stanford University.
1990
1995
Publicized in NASDAQ.
John Chambers appointed as CEO and
president of the CISCO
Initiated IP network solutions and Internet
Business Solutions
Pioneer in computer networking used by
big corporations.
1998
2000
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
 New to the job - Experienced:
$10.00 - $28.75
 After 3 Years with Firm:
$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
Suggestions (Interview Tips)
Lucent Technologies
 IMPROVE human resources management: Lost
nearly 2 dozen top managers and engineers due to
profit warning on Jan 6, 2002
GOOD NEWS!!! In contrast, Nortel will invest
$260mil, hire 3400 people next quarter to
meet the demand.
Suggestions
Nortel Networks
 INTRODUCE stronger products in corporation data
networking business that CISCO dominates
Suggestions
CISCO
 CONCENTRATE more in optical networking: has
bought bits and pieces to put together an optical
networking like Pirelli, Cerent and Monterey. Not
enough compare to Lucent and Nortel.
Conclusion
Fiber Optics Communication
Expressway
CISCO raising the speed limit
LUCENT adding more lanes
NORTEL providing faster transport
equipments
Quote: BusinessWeek October 2002
Future is uncertain, however, we know the traffic is
increasing .i.e. we need a faster and more sophisticated
infrastructure to support the demand.
Quote: Wall Street Journal 2002
References
www.lucent.com
www.nortelnetweeks.com
www.cisco.com
www.businessjournals.com
www.finance.yahoo.com
www.businessweeks.co.jp
Recruiter Contacts
Wes Roberts
Technical Recruiter
Natural Data, Inc.
Phone:214-378-9333
FAX:214-378-9444
wroberts@naturaldata.net
http://www.naturaldata.net/
Shelly Herdman, Staffing Consultant
Search Tech
408-379-9824 ext 236
fax: 408-379-4276
email: shelly@searchtechinc.com
Guthoff & Associates
Joanne Davis
659 A Park Meadow Rd.
Westerville, Ohio 43081
614-794-9950 voice
614-794-9951 fax
pguthoff@cs.com
www.guthoffassociates.com
Jan Sappington
Corporate Image Group
3145 Hickory Hill #204
Memphis, TN 38115
jan@corpimg.com
(Phone): 800-823-5100
(Fax): 901-360-0813
AND MORE…. Please email me.