Optical Networking

Verizon’s FiOS plans cause more cable angst

Verizon’s FiOS plans in 2008 include obtaining some franchises in major metro centers and increasing its HD channel count to 150, both of which are likely to cause further angst for the cable companies. In the former area, Verizon faces the issue of efficient delivery to multiple dwelling units (MDUs), a technical step that it’s been working to resolve through the use of in-building fiber or MoCA cable. The latter step is simply a matter of getting the business relationships in place, since FiOS has ample capacity to deliver virtually any number of HD channels. The current Comcast-satellite war over who has the most HD will be moot when Verizon gets its full complement of channels. All of this will be fueled in part by the digital transition that is scheduled for mid-2009. The coupons for customer conversion for over-the-air sets limited to analog tuning will launch shortly, and the campaign to prepare the market is expected to create a major surge in HDTV sales in 2008 and 1H09, making the question of who has the most HD channels an important marketing point.

Verizon FiOS moving to all-IPTV platform?

September 24 2007: Light Reading reports that Verizon will be moving FiOS to an all-IPTV platform within three years, quoting company sources, but we strongly doubt that statement. We have heard nothing to suggest that Verizon is eager to follow in AT&T’s footsteps, and we would point out that the U-verse model delivers no more channels than the current FiOS and has a higher cost, assuming both “new” and “old” FiOS are based on FTTH. We think this is a misunderstanding on LR’s part.

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LightReading

Packet optical networking destined for bigger growth

September 14 2007: Heavy Reading reports that tremendous growth is expected in packet optical networking, and for once we think they may be even a bit conservative in terms of volume. Packet optical networking is a broad range of stuff that represents non-SONET transport, and one reason we think the forecasts for the sector are low is that the definition of the sector is too narrow. We believe this space has to envelop all of the optical/Ethernet hybrid technologies as well as things like Resilient Packet Ring. When all of these are considered, the total revenue pie is a considerable multiple of the $1 billion that Heavy Reading forecasts for 2012. Packet optical hybrid devices linked with Metro Ethernet are far and away the hottest area in the equipment space, given that nearly 8 of the 10 gigabits of incremental deployed bandwidth in the next five years will occur in metro networks.Relevant Reading Light Reading