The global optical networking market fell 7 percent in the first quarter of 2004, to $2.2 billion, according to market research and advisory services firm RHK Inc.

Rolling 4-quarter share positions of the top five vendors were unchanged during the quarter, with Alcatel remaining in the top spot despite a nearly 50 percent decline in revenues following a particularly strong 4Q 2003. Among the balance of the top ten, Marconi, Siemens, and Tellabs edged up slightly at the expense of NEC.

So what does this mean? Exactly what I have been saying – no one is willing to spend any major bucks, the bandwidth prices are still under pressure and the buildouts are happening at much slower pace.