Almost two decades ago, the optical communications business was dominated by companies with strong research labs that actually invented the intellectual property that made their systems work. But in all maturing industries, as the market grows, the ecosystem splits into smaller segments. In this case, optical component companies sprang up, offering value-add to smaller systems companies that maybe did not have the breadth or depth to master the electro-optics piece of the equation. After all, dealing with fiber splicing, S-parameters, diode pumping, or thermo-electric cooling was esoteric stuff back then. At first, it was subsystems, with engineers leaving to form design houses that delivered linecards or large modules (fiber amplifiers, transponders, multiplexers). Gradually the subsystems market subdivided into even smaller elements, eventually reaching the point that TOSAs, ROSAs, DFB lasers, isolators, etc., were all just a phone call away.
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