New Report by Strategies Unlimited Outlines a European Strategy for Competitive Manufacturing of Optical Components

Mountain View, CA — A new report by Strategies Unlimited outlines a strategy for European companies and policymakers to make the optical component industry more competitive.  The report expands on discussions that came out of a workshop held June 28-29, 2006 in Stockholm, that examined the business of making broadband optical components, and is aimed at the European Commission and the components industry.

Europe is poised for rapid deployment of optical fiber to homes and neighborhoods, with compounded growth expected to be over 40% per year through 2010. European equipment suppliers, such as Alcatel, as well as local suppliers of parts and labor, will be in a good position to benefit from that growth. However, the optical components market is already largely decoupled geographically from the equipment vendors and carriers. Much of the package assembly has moved to East Asia to minimize manufacturing costs. This puts severe pressure on European manufacturers to find new ways to remain competitive and keep operations in Europe. The report reviews these two parts of the market, deployment of services and component supply, and presents five recommendations that could improve the position of suppliers.

“The report is meant to be a catalyst to raise the level of discussion,” says Tom Hausken, director of components research at Strategies Unlimited. “We aimed at a balance between the wishes expressed in the workshop on the one hand and the reality of the global market on the other. And, the market data and perspective is applicable to all suppliers, not just those in Europe.”

European Manufacturing of Photonic Components for Broadband Communication, available now, reviews the global and European markets and drivers for broadband equipment and components, and discusses five recommendations aimed at making European component suppliers more competitive. For more information, contact Strategies Unlimited on +1 650 941-3438 (voice) or +1 650 941-5120 (fax), e mail atinfo@strategies, or check the company's website atwww.strategies-u.com.

Founded in 1979, Strategies Unlimited specializes in market research and strategic consulting directed at optoelectronics, photovoltaic components and systems, optical networking, and compound semiconductors. The company, based in Mountain View, California, is the research unit of PennWell Corporation, a global media and information company serving the energy and advanced technology markets since 1910. PennWell publishes over 45 periodicals including Laser Focus World, Lightwave, and Solid State Technology. For further information, go towww.pennwell.com.

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