To understand the importance of DWDM and optical networking, these capabilities must be discussed in the context of the challenges faced by the telecommunications industry, and, in particular, service providers. Forecasts of the amount of bandwidth capacity needed for networks were calculated on the presumption that a given individual would only use network bandwidth six minutes of each hour. These formulas did not factor in the amount of traffic generated by Internet access (300 percent growth per year), faxes, multiple phone lines, modems, teleconferencing, and data and video transmission. Had these factors been included, a far different estimate would have emerged. In fact, today many people use the bandwidth equivalent of 180 minutes or more each hour. Therefore, an enormous amount of bandwidth capacity is required to provide the services demanded by consumers. No one could have predicted the network growth necessary to meet the demand.
In addition to this explosion in consumer demand for bandwidth, many service providers are coping with fiber exhaust in their networks. An industry survey indicated that in 1995, the amount of embedded fiber already in use in the average network was between 70 percent and 80 percent. Today, many carriers are nearing one hundred–percent capacity utilization across significant portions of their networks. Another problem for carriers is the challenge of deploying and integrating diverse technologies in one physical infrastructure. Customer demands and competitive pressures mandate that carriers offer diverse services economically and deploy them over the embedded network. DWDM provides service providers an answer to that demand.
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