9/2/2008 -- Another year, another drop in Q1 optical networking revenues. Call it the Q1 slump. In 2008, as in years past, the optical segment has righted itself, however, posting double-digit sequential growth en route to a $4.1 billion Q2.

That's the latest from market watcher Infonetics Research, which found that strong performances from Alcatel-Lucent, Huawei, and ZTE -- and surging activity in the People's Republic of China -- helped boost optical fortunes.

"China's telecom restructuring projects and associated announcements indicate increasing optical network hardware capital investments in China over the next several years, and have started already in 2008," said Michael Howard, a principal analyst with Infonetics, in a statement.

China is just the tip of an Asia-Pacific optical spike: "Optical spending by carriers in most Asia Pacific regions generally remains strong for the next few years, particularly in Korea, Japan and Hong Kong. Carriers in India are buying more optical equipment as well, starting this year, and will continue ramping up spending over the next few years."

For the quarter, both Alcatel-Lucent and Huawei -- which Infonetics describes as "perennial" segment leaders -- posted double-digit growth, while ZTE notched a triple-digit increase, eclipsing both Nortel and Nokia Siemens for third place.

What are optical customers spending their money on? Packet optical transport systems (POTS), for starters. POTS sales currently account for just over 10 percent of optical market sales; by 2011, Infonetics projected, they'll comprise one-sixth of all sales.

Elsewhere, the market-watcher projects, ROADM gear will become increasingly commonplace the metro segment. WDM ROADM hardware accounted for almost 40 percent of WDM revenues in Q2, and should post double-digit growth through the forecast period. --Stephen Swoyer