gies and architectures (both the Ethernet and the next-generation SONET) can be reliably and sustainably deployed in the field. How is the market climate as operators everywhere confront these or similar questions? The following are some indicators from the trade press and popular writings of late 2001:1 The optical revolution deferred It now appears that deployed optical networks will not be moving from 10-Gbps rates to 40-Gbps rates any time soon. This is a big shock in an IT world that is accustomed to the regular pace of Moore's Law, which yielded faster processors, larger memories, and bigger disks. At the same time, the shift from optical-to-electrical-to-optical (O-E-O) conversion to an all-optical network has been delayed significantly. Also, the penetration of WDM technology from the WAN to the metro area Chapter 1 has not yet happened as ILECs concluded they had enough fiber and most CLECs have left the scene. Will there be a lost generation of optical component vendors and system companies that were founded on the premise that we needed 40 Gbps, lots of wavelengths, and pure optical transport and switching? Disappointments in broadband access The DSL industry has suffered a setback because most of the DLECs have gone out of business. Cable Multiple System Operators (MSOs) are moving ahead with broadband deployment, but that does not help most businesses. Innovations for optical access-including PONs, Ethernet over fiber, and lower-cost SONET-are all promising, but have not yet been widely deployed, in part because the incumbent carriers have cut back on spending and postponed new initiatives. Many industry participants were counting on a massive adoption of low-cost broadband access to enable new multimedia services and the transformation of the Web into a platform for more commerce and entertainment. Another sure thing was that everything was moving from the enterprise into the Net-web servers, storage, applications, the works. The fall of Exodus, the missteps of many ASPs, and the perilous financial 