Optical Networking market continues to reel under pressure with revenues almost stagnant except for Chinese companies who are virtually basking in glory at the expense of their Western world counterparts.

Huawei is now the clear leader in the optical networking market as per market research firm, Ovum with the company surpassing nearest rival Alcatel-Lucent by $ 100 million in terms of revenues. This is the third consecutive quarter when Huawei has been able to achieve this fete.

Huawei also increased its market share by almost 3 percentage points.

Following Huawei with growth rate in the segment is another Chinese company, ZTE which is at number 4 in the rankings replacing Fujitsu which has slipped to number 5.  

Huawei and ZTE are benefiting from strong demand for such solutions in the domestic market as the three operators in China are in the process of expanding their core networks as well as building new 3G networks.  

“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," remarked Ovum's Vice President, Optical Networking, Dana Cooperson. "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."

Overall the optical networking market witnessed drop in revenues by 10% on a yoy comparison to $ 3.6 billion. On a sequential basis the revenues are seen at a drop of 4%. Sequentially some vendors such as Fujitsu, Cisco, NEC and Tellabs reported growth in revenues. NSN slipped to number 9 position from the earlier held number 5 rank.