Optical Networking

Alcatel-Lucent’s converged backbone meets carrier needs

Alcatel-Lucent has announced a converged optical/IP backbone strategy that is aimed at a much more seamless coupling between core routing and core optics, the very thing that service providers have been demanding in RFPs. Further, the Alcatel-Lucent approach leverages the company’s optical incumbency and puts pressure on competitors that lack any real optical-layer product set or expertise.

We’ve seen operators working to create a more optical-based network core for at least five years now, and in the last year it’s become clear that they’ll execute on those demands in the near term.

The Alcatel-Lucent strategy is to take normal router-level lambda grooming and push it deeper, to the sub-lambda level, to support QoS-specific traffic. That’s a good option in our view. We must note that the new approach is overall more one of integration in a combination-of-product sense than in a single-product sense. We think this is a kind of statement of direction to create ever-tighter coupling in a data plane and management sense over time, which could be revolutionary.

Ericsson develops packet-optical gear for metro surge

Ericsson is fielding a line of packet optical gear designed to address the expected surge in metro networking. The new products will support a T-MPLS control plane, but Ericsson plans to upgrade to the more modern MPLS-TP and is also considering PBT (PBB-TE).

Metro capacity may be driven by a host of factors in 2009 and 2010 and the operators may be more interested than usual in the optical layer. This has implications on the Carrier Ethernet and IP MPLS wars since optical spending tends to encourage operators to deploy some control plane architecture, and that could then pull through either switches or routers.

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