LW 20070501 May 2007

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Previous Page Contents Zoom In Zoom Out Front Cover Search Issue Next Page
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Focus
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page 13
OPTICAL TECHNOLOGIES, COMMUNICATIONS APPLICATIONS, AND INDUSTRY ANALYSIS WORLDWIDE MAY 2007
page 23
www.lightwaveonline.com $23.00
APPLICATIONS
Service-enabled networks
aid convergence
By ANDY McCORMICK
Today, network operators con-
tinue to seek convergence of
their networks to reduce op-
erational expenses and elim-
inate unnecessary additional
capital expenditures on multi-
ple parallel networks. Driven
by the need for rapid returns
on investments (ROIs), tele-
com carriers are integrating
a variety of services includ-
ing residential broadband,
advanced enterprise data con-
nectivity, and video into ex-
isting voice networks while
cable operators are adding
voice over IP (VoIP) and ad-
vanced enterprise data ser-
vices to the existing video
and residential broadband
infrastructure. At the same
time, there is a massive migra-
tion from traditional SONET/
SDH-based TDM services to
IP/Ethernet-based services,
including voice, video, Inter-
net access, and Layer 2 busi-
ness services.
The migration is not with-
out its challenges and risks,
especially when you consider
supporting converged ser-
vices without stranding in-
vestments. This task requires
the development of a service-
enabled transport network de-
signed to handle VoIP, video,
and data traffic as well as stan-
dard voice without sacrificing
the performance network op-
erators have
INDUSTRY
EDC vendors try again on LRM
By STEPHEN HARDY
Critics of the 10GBase-LRM often warned
of the difficulty of relying on electronic dis-
persion compensation (EDC) to push a serial
10-Gbit/sec data stream down 220 m of leg-
acy 62.5-m multi-
mode fiber. Judging
by how long it has
taken X2 transceivers
compliant with the
LRM specifications
to reach the market
and the fact that most
of the first generation
of these modules use
an EDC chip from
the same vendor, de-
spite several supplier
optionssuch pre-
dictions apparently
proved sound. Nev-
ertheless, the chip vendors have not given up.
While licking the wounds generated during the
first X2 skirmish, IC suppliers have begun to
retool their offerings in hopes of earning fu-
ture design wins, either for a cost-reduction
design round in the X2 space or for the first
generation of SFP+ applications.
The 10GBase-LRM PHY was designed to of-
fer a serialand, hopefully, cheaperalterna-
tive to four-channel
10GBase-LX4 mod-
ules for 10-Gigabit
Ethernet applications
over legacy fiber in en-
terprise and data cen-
ter applications. LRM
proponents touted
EDC as the key to
overcoming the dis-
persion inherent in
such multimode fiber
that previously had
prevented practical
serial transmission.
However, difficul-
ties soon became apparent when the working
group charged with creating the specifications
decided to abandon matching the 300-m reach
of the LX4 in favor of a more
TECHNOLOGY
T-MPLS and PBT/PBB-TE offer
connection-oriented packet transport
By DANIEL JOSEPH BARRY
Provider Backbone Transport
(PBT) and transport MPLS (T-
MPLS) are two new packet-
transport concepts that have
re-ignited discussion on the
best approach to implement
a fully packet-based telecom-
munication network. Both
concepts propose a connec-
tion-oriented, point-to-point
packet transport method that
provides a high-level of pro-
tection, monitoring, and con-
trol for network operators.
T-MPLS has been
proposed and specified
by several vendorsin-
cluding Alcatel, Ericsson,
Fujitsu, Huawei, Lucent, and
Tellabsand standardized by
ITU-T over the past two years.
PBT, on the other hand, has
been proposed by Nortel and
is expected to begin standard-
ization in 2007 within IEEE
as PBB-TE (Provider Back-
bone Bridging-Traffic Engi-
neering). Other vendors such
as Extreme, Meriton, Siemens,
and World Wide Pack-
ets have recently voiced
their support.
The main appeal of these
concepts is the promise of
lower cost, lower complexity,
and ease of management, while
providing an approach suitable
for IP-based services that re-
sembles existing, well-under-
stood transport technologies.
Migration from
SONET/SDH
The develop-
Scale
model
How do we get
to cost-effective
100GbE? PAGE 13
Going
global
Carriers seek mul-
tiservice Ethernet
platforms. PAGE 23
Pulse
check
The industrys
recovery is
underway. PAGE 31
Deep impact
Patterning a filter via deep ultravi-
olet lithography helps LightSmyth
create a nanoscale photonic
component with flexible passband
control. PAGE 20
page 31
While Vitesse cleaned up in the initial round of
10GBase-LRM X2 designs, a subsequent cost
reduction round of designs offers other EDC
vendors a second chance.
O
P
N
E
X
T
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VOL. 2 4 , NO. 5 MAY 2 0 0 7
Contents
Technology Applications Industry
www.lightwaveonline.com LIGHTWAVE May 2007 5
FOCUS ON
13 TRANSPORT PROTOCOLS
Scaling to 100GbE: Drivers
and implementation
BY VIJAY VUSIRIKALA, INFINERA
13 TECH TRENDS
PON chip space gets
more crowded
BY STEPHEN HARDY
17 STANDARDS WATCH
ICEA publishes two fiber-
optic cable standards
BY MICHAEL D. KINARD, CONSULTANT
20 PRODUCT PROFILE
Startup makes nanophotonics
device with DUV photolithography
BY MEGHAN FULLER
20 PREMIER PRODUCTS
Components, installation
tools, and test equipment
FOCUS ON
23 TRANSPORT PROTOCOLS
Multiservice switching platforms
enable global Ethernet services
BY KEVIN WADE, TURIN NETWORKS
23 CASE BY CASE
Verizon Business plots business
plan for 07 and beyond
BY MEGHAN FULLER
31 OFC/NFOEC 2007: Recovery
underway, but incomplete
BY MEGHAN FULLER
31 ANALYST CORNER
iSuppli sees promise for
optical in wireline capex forecast
BY STEPHEN HARDY
35 PEOPLE
Eudyna appoints executive VP
Fluke Networks names president
IEEE presents Photonics Award
38 MARKET WATCH
40G component market
to net $500M by 2012
Worldwide PON equipment
neared $1B in 2006
Fiber availability increases,
SMEs still underserved
Photonic device takes cue from
electronic processes with DUV
photolithography page 20
FOCUS ON TRANSPORT PROTOCOLS Our pages are packed
with the best approaches to optimizing transport net-
works. Some advocate protocol-specific plans for securing packet transport
networks, such as OTN and T-MPLS and PBT/PBB-TE (both front page). An-
other industry voice says 100GbE services are possible without re-inventing
the wheel when it comes to optical infrastructures (page 13). Yet one more
advises global carriers to move to multiservice Carrier Ethernet service de-
livery platforms to maximize bandwidth efficiency (page 23).
6 update
10 Editorial STEPHEN HARDY
Counting chickens
up-front
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HOTPICK
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6 May 2007 LIGHTWAVE www.lightwaveonline.com
Finisar Corp. (www.finisar.com) has agreed to acquire Wilmington, MA-based AZNA LLC
for $19.7 million and South Plainfield, NJ-based Kodeos Communications Inc. for $7 mil-
lion. The AZNA acquisition will provide Finisar with chirp-managed directly modulated la-
sers (CMLs), which enable longer-reach optical transmitters at a lower cost and with less
complexity than those based on externally modulated lasers. Kodeos optical duobinary
(ODB) and maximum likelihood sequence estimator (MLSE)-based technologies, mean-
while, will give Finisar the 10-Gbit 300-pin MSA transponder product line it is lacking. The
acquisitions also bolster the companys expertise in tunable modules.
north america
Alcatel-Lucent (www.alcatel-lucent.com) signed an agreement to ac-
quire substantially all assets, including all intellectual property, of
Canadian metro WDM networking supplier Tropic Networks Inc. The
integration of Tropic Networks intellectual property, namely the Wavelength Tracker, en-
hances the competitiveness of Alcatel-Lucents optical product portfolio and gives operators
the benefit of cost-effectively upgrading their networks according to the latest innovations
in optical transmission, say Alcatel-Lucent representatives. This transaction builds upon a
collaboration that the two companies established in July 2004.
Optium Corp. (www.optium.com), a supplier of optical subsystems, has entered into a de-
finitive agreement to acquire Kailight Photonics Inc., provider of 40-Gbit/sec optical trans-
mission products, for approximately $35 million in cash. Kailights family of optical modules
includes 300-pin 40-Gbit/sec transceivers addressing line- and client-side applications. Op-
tium says the acquisition will build on its existing suite of optical transport products, includ-
ing wavelength-agile DWDM, SONET, and 10-Gigabit Ethernet transceivers and subsystems;
10-Gbit/sec pluggable transceivers; cable TV trunking and distribution subsystems; and its
wavelength-selective switch (WSS). In addition, Optium claims the Kailight acquisition will
enable it to provide full line cards of all variations for 40-Gbit/sec applications.
Avago Technologies (www.avagotech.com) and Infineon Technologies AG (www.infineon.
com) have entered into a definitive agreement under which Avago will acquire Infineons
polymer optical fiber (POF) business, based in Regensburg, Germany. The two companies
say that Infineons POF business is the leader in the market for automotive multimedia in-
fotainment networks and transceivers for safety systems. This business unit also provides
transmitters and receivers for transportation switching and home broadband services. All
research and development, marketing, and manufacturing employees of Infineons POF
group are expected to become Avago employees and will continue to be located at the
present Regensburg facility.
AboveNet Inc. (www.abovenet.com) says it has acquired IRUs in,
or service agreements for, 60 building access fiber connections
held by AT&T in Los Angeles and Chicago as well as 180 building
access fiber connections held by Verizon in New York, Washing-
ton/Baltimore, and Philadelphia. AboveNet acquired these assets
in competitive bid processes that AT&T and Verizon separately
conducted to divest certain assets pursuant to consent decrees
issued by the U.S. Department of Justice in connection with the
mergers of SBC and AT&T, and Verizon and MCI, respectively.
The operating subsidiary of Level3 Communications Inc. (www.
level3.com) has purchased certain assets from AT&T Corp.
that were ordered divested as a result of the merger between AT&T and SBC
Communications Inc. The assets consist of IRUs for dark fiber connections
to more than 200 buildings and more than 1,600 metro fiber route-miles
in six of the 11 markets where AT&T was required to divest certain assets.
Level3 will acquire fiber assets in Detroit, Hartford, Kansas City, Milwaukee,
San Francisco, and St. Louis. Level3 will retain intermediate splice rights,
which will enable it to add new buildings to the acquired assets.
OpVista (www.opvista.com) has completed a core network capacity upgrade
for Cox Communications throughout the service providers Connecticut and
Rhode Island networks. Started in the middle of 2006, the network upgrade
features OpVistas recently announced AnyWave Optical Network architec-
ture and products, giving Cox Communications a single DWDM platform scal-
able to 800 Gbits to support new 10-Gigabit Ethernet services.
Star Telephone, an IOC based in southeastern North Carolina, has selected
Ciena Corp.s (www.ciena.com) CN 4200 FlexSelect Advanced Services
Platform for its core network infrastructure upgrade. Star is transitioning its
legacy SONET network to a next-generation, service-enabled architecture
to better support the delivery of high-bandwidth services, including metro
Ethernet, wireless, high-speed data, and IPTV.
FPL FiberNet, a subsidiary of FPL Group, has selected Infineras (www.
infinera.com) DTN for its regional optical network to bring the benefits of digi-
tal optical networking to the growing Florida market, a key connection point
between the North American market and the Caribbean and Latin American
markets. FPL FiberNet delivers broadband services to IXCs, wireless carri-
ers, international telecom companies, ISPs, and large
enterprises. The company has more than 2,500 route-
miles of high-count fiber with connectivity to central
offices, customer PoPs, carrier hotels, and all interna-
tional cable landing stations in South Florida.
CyOptics Inc. (www.cyoptics.com) has announced
the signing of a definitive agreement to acquire Apo-
gee Photonics (www.apogeephotonics.com), a sup-
plier of laser sources for the 10- and 40- Gbit/sec
markets. Terms of the transaction have not been
disclosed.
March 26, 2007 marked the first meeting of
the Serial Short-Reach 40-Gbit/sec Transpon-
der (SSR-40) Working Group (www.ssr40.com),
established to address the industrys need to
provide a cost-effective 40-Gbit/sec serial tran-
sponder for short-reach applications. Members
include Inphi, Kailight Photonics, Picometrix,
Sanmina-SCI, SHF Communication Technolo-
gies AG, and Sierra Monolithics.
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Adesta LLC (www.adestagroup.com), a
systems integrator and project manage-
ment company for communication net-
works and security systems, has been
awarded contracts from the Maryland
Broadband Cooperative (www.mbdc.
us) valued at more than $8 million to
design and build the first 140 miles of
an open-access telecommunications
infrastructure in the states rural com-
munities. Adestas turnkey operations
will consist of design and construction
of the fiber-optic network with 144 to
288 strands of dedicated fiber backbone.
Adesta will provide and install an open-
access SONET system, with an OC-192
backbone and smaller connections at lat-
eral endpoints across segments of the
network. These endpoints will connect to
universities, industrial parks, and other
points of interest, including business de-
velopment and technology centers.
Ledcor Technical Services (LTS) and
ComSpan-Bandon Networks have se-
lected Hitachi Telecom (USA) Inc.s
(www.hitachitelecom.com) AMN1220
GPON platform to extend a fiber network
that is now operating in Bandon, OR, into
the town of Coquille, about 17 miles in-
land from Bandon. Construction is sched-
uled for completion in the third quarter.
Coquille and Bandon are being connected
by fiber-optic cable, which will carry a
video feed from the headend, located in
Bandon, to Coquille. LTS and ComSpan-
Bandon Networks will offer video, high-
speed Internet, and voice services.
Corning Cable Systems LLC (www.
corning.com/cablesystems) is providing
its Evolant Advantage Optical Solution
for the Lake Las Vegas fiber-to-the-home
(FTTH) deployment. Located 17 miles
from the Las Vegas Strip, Lake Las Ve-
gas is a 3,600-acre development of
residential homes, hotels, and champi-
onship golf courses. The development
is expected to reach 10,000 units when
the build-out is complete.
Connexion Technologies (www.cnxntech.
com) has been tapped to build fiber-op-
tic networks for three new properties:
Highlands at Walnut Creek, a mountain
community in western North Carolina
(Highlands Mountain Properties); The
Park Condos, an upscale mid-rise resi-
dential project in Charlotte, NC (Verna
and Associates); and The Point Orlando
Resort, a Mediterranean-style high rise in
Orlando, FL (Seymour International). The
fiber-optic amenity company says it con-
tinues to sign additional contracts with
national developers at a steady rate.
Santur Corp. (www.santurcorp.com),
manufacturer of widely tunable transmit-
ters for the telecommunications industry,
has entered into a strategic long-term
supply agreement with StrataLight (www.
stratalight.com), provider of 40-Gbit/sec
next-generation optical transponders and
subsystems. Santur will supply its pat-
ented DFB array technology, which it says
enables the fabrication of broadly tun-
able sources at the same performance
and reliability as fixed DFB lasers.
Xponent Photonics (www.xponentinc.
com), manufacturer of surface-mount
photonic components, has secured $23
million in a Series 3 funding round led by
American River Ventures, which is mak-
ing its first investment in the company.
Xponents existing investors, including
Arcturus Capital, Eastward Capital, El Do-
rado Ventures, HOYA Holdings, Samsung,
US Venture Partners, and Walden Inter-
national also participated in the funding.
According Xponent president and chief
executive officer Jeffrey S. Rittichier, the
new funding will enable the company to
accelerate market penetration of sur-
face-mount photonics beyond the FTTX
market. He confirms that the company is
sampling optical components to the data-
com, cable TV, and consumer markets.
emea
Bratislava-Orange Slovensko, a sub-
sidiary of France Telecom (www.france
telecom.com), has announced plans to
build a dense national network of opti-
cal connections to households in Slova-
kia. Orange believes the deployment will
give it a few years head start on its com-
petition. The carrier will invest approxi-
mately 1 billion SKK (32 million) and
cover almost 200,000 households by the
end of the year. The optical connections
will provide Internet services at speeds
of tens of megabits per second and will
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support digital television, video- and au-
dio-on-demand, telephony, and other ser-
vices. Orange says it will deploy optical
connections in 10 Slovak cities.
Magyar Telekom, a member of the
Deutsche Telekom Group, has signed
a multiyear frame contract with Kapsch,
a communications service supplier for
carriers and service providers, for the
supply of Transmode (www.transmode.
com) TM-Series CWDM systems. Magyar
Telekom says it is using the Transmode
TM-Series to extend its existing fiber in-
frastructure in metro networks, optimize
the aggregation of data traffic in access
networks, enable flexible access to high-
speed leased-line networks, and provide
a cost-effective alternative to dark fiber
provisioning. The first deployments under
the contract are now live.
T-Com (www.t-com.de), the broadband/
landline division of Deutsche Telekom,
Germanys incumbent carrier, has se-
lected ADVA Optical Networkings (www.
advaoptical.com) Fiber Service Platform
(FSP) 3000 for the expansion of its opti-
cal metro and regional networks. In coop-
eration with ADVA and partner Siemens
Communications (www.siemens.com), T-
Com signed a multiyear contract for the
implementation of WDM-based transmis-
sion technology in its next-generation
metro and regional networks. The FSP
3000 platforms flexibility and ability to
handle multiple network interface proto-
cols at data rates ranging from 8 Mbits/
sec up to 40 Gbits/sec was reportedly a
deciding factor for T-Com.
Vtesse Networks (www.vtesse.com), a
U.K. supplier of converged optical net-
work services, is implementing BTI Pho-
tonic Systems (www.btiphotonics.com)
optical networking platform, Netstender,
to extend the capacity and reach of its
backbone network to support one of the
UKs largest financial institutions. Vtesse
is leveraging BTIs technology to deliver
Gigabit Ethernet connectivity to major fi-
nancial sites across a 10-Gbit Ethernet
private line backbone. BTIs platform will
interconnect networks between Leeds,
York, Middleborough, and Newcastle.
Following the commissioning of a trans-
oceanic submarine cable upgrade, Azea
Networks (www.azea.net) has secured a
Series D funding round of more than $20
million led by TVM Capital and supported
by its existing investors. Azea already is
backed by top-tier venture capital investors
from both the US and the UK, including Ac-
cel Partners, Atlas Venture, and Quester.
The company reveals that new investor
TVM Capital of Munich, Germany, and Bos-
ton, MA, has led this additional funding
round to provide working capital for further
technical and business development and
to take the company to profitability.
Enablence Technologies Inc. (www.
enablence.com) has agreed to acquire
all of the outstanding shares of Albis
Optoelectronics AG (www.albisopto.
com). The Swiss supplier of photodiodes
will continue to supply products to the
datacom and FTTH markets as a wholly
owned subsidiary of Enablence.
asia
Photop Technologies (www.photoptech.
com) and Wuhan National Laboratory for
Optoelectronics (WNLO) will jointly es-
tablish a lab for photonics technologies
with applications in fiber-optic communi-
cations, lasers, and optoelectronics.
ZTE Corp. (www.zte.com.cn/) has won
a contract from MTN, Africas largest
mobile carrier, for a Rwandan transmis-
sion project to build both the Rwandan
backbone network and the first met-
ropolitan network in the capital, Kigali.
The backbone network project will con-
nect Rwandas capital with the Ugandan
border, where it will interface with the
Uganda MTN network to provide an in-
ternational fiber-optic gateway. ZTE will
use its ZXMP S330 SDH transmission
equipment in building the backbone and
metro networks.
Hong Kong Exchanges and Clearing Ltd.,
one of Asias largest international stock
exchanges, has upgraded the speed
and reliability of its backbone network
infrastructure serving derivatives mar-
kets with high-bandwidth optical DWDM
technology from Nortel (www.nortel.com).
Nortel will provide its Optical Metro 5200
DWDM platform.
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_________________
Edi tori al
STEPHEN M. HARDY
Editorial Director & Associate Publisher
stephenh@pennwell.com
My conversation with Steve Rago, principal analyst,
IPTV, broadband, and digital home research, iSuppli
Corp. not only provided me with the raw material for
this months Analyst Corner department (see page
31), it also reminded me of a couple of things.
First is that one of the perks of my job is to be in a
position to hear a lot of opinions about a lot of dif-
ferent things. Its particularly interesting when I hear
conflicting opinionswhich is not a particularly
frequent occurrence when it comes to conversations
with market researchers. Sure, their numbers never
match exactly, but generally speaking, the analyti-
cal community tends to be in agreement on major
market trends, most recently such things as the rise
of Ethernet, the growing market for PON equipment
and ROADMs, etc. This isnt surprising when you
consider that theyre all covering the same thing and
mostly talking to the same people.
Thats why I was interested to hear Rago say that
the European market for FTTH, at least in
the near term, would likely be stronger
that its North American counter-
part. Ragos statements came just
a few days after Vince Chook of
Point Topic suggested that the
European market was fall-
ing behind Asia and the U.S.
when it comes to fiber in the
access. Pointing to the fact
that BTs 21st Century Net-
work initiative will focus
mainly on xDSL technology
while NTT has already sunk
the GNP of a small country into
FTTH, Chook was quoted in a
press release as stating, Without
fiber Europe will rapidly become the
digital slowcoach on the information
super-highway.
Such lamentations about the allegedly sorry state
of European FTTH efforts are pretty typical within
Europe, judging by the information flowing through
my office in connection with our Lightwave Europe
quarterly publication. For example, the majority
viewpoint among speakers at the FTTH Council Eu-
ropes event in Barcelona this past February appeared
to be that while more was happening in Europe this
year than last, the carriers on the continent needed
to step up their efforts to match those of NTT, KT in
Korea, and Verizon in the US. If they didnt, Europe
would be put at a competitive disadvantage.
Meanwhile, back here in the States, Ragos opinion
echoes that of KMI Research, which estimated last
year that by 2010, Europes Big 5 carriers
will have more FTTP subscribers than will
U.S. carriers. That will translate into an
overall European market for various fla-
vors of FTTX equipment that will be twice the size of
the U.S. opportunity, according to KMI.
What are we to make of these conflicts of opinion?
Im not sure which is more telling: the fact that there
isnt a consensus about U.S. and European FTTH
market directions or that the U.S. analysts have Eu-
rope in the lead while their Continental counterparts
predict the opposite. Perhaps the obstacles to full-
scale deployment of FTTH (which differ in some cases
between Europe and the US) appear more daunt-
ingly large the closer you stand next to them, which
makes the prospects on the other side of the Atlantic
look more appealing. Or maybe the situation in both
markets is in such a state of flux that counting mar-
ket chickens before theyve hatched in this instance is
more difficult than usual.
Meanwhile, the otherbut relatedthing my con-
versation with Rago reminded me of is the danger of
extrapolating too far when the analysts do agree. As
Ive mentioned, weve all seen the numbers (includ-
ing those published in this humble publication) that
indicate the growth rates for various segments of the
FTTH marketplace. Its easy to get excitedeven
when youre an editorby what you read and hear.
Thus, it was a useful reality check when Rago said that
of the $14 billion that iSuppli predicts will be spent
worldwide in access networks this year, only 6% or 7%
will go to optical technologyand most of that will go
to things like DSLAM backhaul.
Yes, fiber to the home and business should be
the future architecture of choice when it comes to
the delivery of broadband services. The activity in
Asia, within Verizons footprint and among many
smaller carriers and municipalities here in the US,
and of municipalities, utilities, and telcos in Eu-
rope indicate that the right steps are being taken
toward that future. But the future isnt here yet.
And, as the disagreements among the analysts il-
lustrate, not only do we not know when the FTTH
future will arrive, were not even sure where it will
appear (besides Asia). As always, optimism must
remain tempered by realism if the optical commu-
nications industry is to maintain a path that is both
positive and stable.
EDITORIAL
Editorial Director and Associate Publisher
Stephen M. Hardy
603-891-9454 stephenh@pennwell.com
Managing Editor
Carrie Meadows
603-891-9382 carriem@pennwell.com
Senior Editor
Meghan Fuller
603-891-9327 meghanf@pennwell.com
Columnists
Michael D. Kinard
Editorial Advisory Board
Dr. Donald Bossi / Aegis Semiconductor
William J. Cadogan /
Vesbridge Partners
Andy Chraplyvy /
Alcatel-Lucent
Donald T. Gall / Pangrac & Associates
Ira Jacobs / Virginia Polytechnic Institute
Michael Lebby / OIDA
Kevin Lefebvre / SUNY IT
Stan Lumish / JDSU
Stephen Montgomery / ElectroniCast
Vik Saxena / Comcast
Paul W. Shumate, Jr. / IEEE LEOS
Presentation Manager Cindy Chamberlin
Senior Illustrator Dan Rodd
Marketing Director Lisa A. Bergevin
603-891-9410 lisab@pennwell.com
Circulation Manager Michelle Blake
603-891-9360 michellb@pennwell.com
ATD PUBLISHING DEPARTMENTS
Art Director Meg Fuschetti
Production Director Mari Rodriguez
Senior Vice President
Group Publishing Director
Mark Finkelstein
603-891-9133
mfinkelstein@pennwell.com
Group Publisher
Tim Pritchard
603-891-9447 timp@pennwell.com
Lightwave Executive & Editorial Offices
98 Spit Brook Rd., Nashua, NH 03062-5737
Tel: 603-891-0123, Fax: 603-891-0587
For subscription inquiries only:
Tel: 847-559-7520, TDD: 918-831-9566
To subscribe online, go to:
www.lw-subscribe.com
In Europe:
PennWell European Journal Service
P.O. Box 4456, London SW12 8AX,
United Kingdom
Phone: 44 181 675 9775,
Fax: 44 181 675 0301
E-mail: HRA@pennwell.com
CORPORATE OFFICERS
Chairman Frank T. Lauinger
President and CEO Robert F. Biolchini
Chief Financial Officer Mark C. Wilmoth
ADVANCED TECHNOLOGY DIVISION

Vice President of Audience Development
Gloria S. Adams
Optimism must
remain tempered by
realism if the opti-
cal communications
industry is to main-
tain a path that
is both positive
and stable.
Counting chickens
In our April Product Profle (page 20), the interviewees name
was misspelled. Dawn Hogh is the vice president of marketing
and development at OpVista. Lightwave regrets the error.
Clarification
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Technology
Advances i n research, devel opment,
engi neeri ng, and standards
CONTINUED FROM PAGE 1
TECH TRENDS
Cont. on pg 18
Cont. on pg 16
Cont. on pg 14
The sustained high growth of Internet traffic has
important scaling implications for IP backbone
network capacity, individual core router size,
router-to-router link bandwidth, and the opti-
cal transport networks used to carry this traffic
across the WAN. A number of new applications
in a variety of industry verticals are feeding the
continued traffic growth in the core. Rapid con-
sumer adoption of downloadable video content,
facilitated by ultra-broadband access networks,
is driving the need for higher speeds in carrier,
cable multiple-system operator (MSO), and con-
tent delivery networks. And in enterprise net-
works and data centers, new trends such as file
and storage virtualization, combined with new
data sets like high-resolution imagery and video,
require higher-speed interfaces.
Scaling techniques currently used to meet
such growth typically are based on bundling n
10-Gbit/sec links using Layer 2 link aggrega-
tion groups (LAGs) or Layer 3 equal cost mul-
tipath forwarding (ECMP). These techniques
have a number of drawbacks, including the high
cost and complexity associated with multiple
ports and links. Moreover, inefficiencies result
from handling high-bandwidth flows because
they cannot be striped effectively across multi-
ple links. Thus, the limitations of current scal-
ing techniques and continued traffic growth are
underlining the strong need to develop an eco-
system for the next higher speed of Ethernet:
100-Gigabit Ethernet (100GbE).
100GbE WAN transport
The introduction of any new Ethernet standard
requires broad industry consensus in definition,
implementation, and adoption. Several standards
organizations currently are developing different
pieces of the end-to-end 100GbE puzzle. The In-
stitute for Electrical and Electronics Engineers
(IEEE) 802.3 committee, with its Higher Speed
Study Group (HSSG), is developing the MAC
layer parameters and LAN physical interface
specifications for various application distances.
The International Telecommunications Union
(ITU), meanwhile, is developing recommenda-
tions for 100GbE transport over the WAN us-
ing the currently defined Optical Transport
Network (OTN) rates as well as a new, higher-
speed OTN rate. The phys-
By Vijay Vusirikala
Scaling to 100GbE: Drivers
and implementation
Connection-oriented packet transport
ment of PBT and T-MPLS has been driven by a
carrier need to migrate from existing SONET/
SDH to a fully packet-based network that can
easily scale to meet future bandwidth demands.
IP-based services are expected to drive these
demands. This factor has prompted many car-
riers to use IP/MPLS routers as the cornerstone
of their migration strategies.
While some carriers have already migrated
to a fully IP/MPLS-based network, others, par-
ticularly those with large existing SONET/
SDH networks, are concerned with the impli-
cations of such a step. Since IP/MPLS is based
on a network approach different from SONET/
SDH, extensive retraining and work-process
redesign would be required. There are fur-
ther concerns that the complexity involved in
configuration and maintenance of IP/MPLS
routers will require highly skilled staff. These
factors, combined with the cost of router in-
terfaces, have prompted some carriers to seek
alternatives.
Carrier Ethernet has gained traction recently
as a connectivity method between routers that
promises reduced cost and complexity. The
widely understood benefits of Ethernet, such
as ubiquity, simplicity, and low cost, and the
fact that it can be implemented over multiple
technologies have driven Carrier Ethernets
appeal.
However, today most Carrier Ethernet
networks are based on either Ethernet over
SONET/SDH or Ethernet over MPLS (using
pseudowires/virtual private line services). To
date, Ethernet as a standalone transport mech-
anism has not been widely considered appeal-
ing due to its inability to meet carrier-class
requirements.
PBT and T-MPLS provide a new alternative
in which the former ad-
Verizons recent rollout of GPON infrastructure, coupled
with field trials by Tier 1 carriers in Europe and elsewhere,
has firmly established the ITU-T standardized version of
PON-based FTTH as a viable market. Chip makers have
taken notice; what had once been a niche supported by a pair
of vendors suddenly has attracted the attention of a range of
companies that are lining up devices based on system-on-
a-chip (SoC) approaches. The EPON space hasnt attracted
the same number of companies, but the SoC-based com-
petition has been equally fierce. In both cases, differentia-
tion based on features and cost should prove as important
as time-to-market.
PONs comprise an optical line terminal (OLT) in the cen-
tral office that feeds multiple CPE devices (called optical
network terminals, or ONTs, in the GPON world and opti-
cal network units, or ONUs, in EPON) via passive splitters
in between. A single line out of an OLT could serve as many
as 64 CPEs, although actual numbers will likely be signifi-
cantly smaller. Needless to say, that means theres a greater
demand for CPE chips than OLT chips.
Thus, its no surprise that there is also a greater number
of chip makers chasing CPE than OLTs as wellor at least
looking to provide ONT chips before OLT devices. In the
GPON space, that means only a few current alternatives
to in-house expertise when it comes to OLT development.
BroadLight (www.broadlight.com), which consistently has
reached the market first with ITU-T compliant silicon, re-
cently announced a new quad controller SoC for GPON
OLTs, the BL3458, that it says will be available next month.
The chip consumes approximately 4 Wless than a watt
per line, says Dan Parsons, director of marketing at Broad-
Lightand combines integrated burst-mode CDR (BCDR)
and SerDes, a dynamic bandwidth allocation (DBA) engine,
an integrated processor, upstream and downstream forward
error correction (FEC), and downstream encryption and key
exchange. Designed to replace four single-line chip com-
binations, the IC supports PON-
aware quality of service (QoS).
BroadLight may be the first to de-
liver a quad device, but it wont be the
last. Iamba Networks (www.iamba.
com), which provides technology
and IP to companies looking to en-
ter the PON market, announced
on May 7 a new family of SoCs that
are part of its Iamba GPON Eco-
System (iGES). The OLT silicon
includes the dual-
By Stephen Hardy
PON chip space gets
more crowded
Stephen Hardy
is the editorial director
and associate pub-
lisher of Lightwave.
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100-Gbit/sec Tx PIC
100-Gbit/sec Rx PIC
Source: Innera
100-Gbit/sec Tx
module
100-Gbit/sec Rx
module
10 10G
transmitters
10 10G
receivers
10 DWDM demultiplexer 10 DWDM multiplexer
Technology
Scaling to 100GbE: Drivers and implementation
ical interfaces for optoelectronic data
modules are typically standardized via
multisource agreements (MSAs) among
the optical component vendors.
A crucial piece of the 100GbE eco-
system is the ability to cost-effectively
transport a 100GbE signal across the
WAN while easily provisioning, man-
aging, troubleshooting, and protecting
the service. The 100GbE signal from
the client equipment (e.g., router) is
connected to the optical transport sys-
tem using a short-reach physical in-
terface, currently being standardized
by the IEEE. This signal is then trans-
ported over WDM networks spanning
metro, regional, or long-haul distances,
after which it is handed off to the re-
ceiving client.
The industry has proposed two ap-
proaches for this 100GbE over WDM
transport: a serial method with a native
line rate up to 120 to 130 Gbits/sec and
a concatenated approach where the 100
Gbits/sec are inverse multiplexed into
multiple wavelengths or optical data
units (ODUs) in the OTN framework.
In the serial approach, the 100GbE
signal is transmitted on a single wave-
length using serial transmission at a
rate that is typically higher than 100
Gbits/sec. For example, the serial trans-
mission recommendation of the ITU
proposes a payload container of 122
Gbits/sec and a transmission rate of
130 Gbits/sec with forward error cor-
rection (FEC) overhead.
While the serial transport option
looks attractive from an ease-of-man-
agement point of view, the technologies
needed for serial 120- to 130-Gbit/sec
transmission are currently immature
and very expensive. Serial transport
can be accomplished using TDM-only
transmission or by techniques that use
advanced signal coding (e.g., duobi-
nary transmission) or modulation tech-
niques (e.g., QPSK, DQPSK, or QAM)
to transmit 100 Gbits/sec at a lower ef-
fective baud rate. However, the imple-
mentation of both serial transmission
techniques requires sophisticated and
expensive optical components that are
still a few years away from widespread
commercial deployment.
Moreover, with these techniques,
scaling to 100 Gbits/sec would continue
to be limited by a wide range of optical
impairments. Many optical transmis-
sion impairments, including chromatic
dispersion, polarization-mode disper-
sion, and optical receiver sensitivity,
scale exponentially with bit rate and
limit the unregenerated reach unless
complex and costly compensation tech-
niques are used. When carriers scale
their networks to 40 Gbits/sec today,
they face significant issues in terms of
compensation for optical impairments.
And these impairments are magnified
by a factor of 6.25 when scaling the net-
work from 40 to 100 Gbits/sec.
In the concatenated approach, the
packet data from the 100 Gbits/sec is
inverse multiplexed over multiple ODU
channels and deterministically remul-
tiplexed back at the receiver. A number
of concatenation schemes are possible
depending on the type of transport
unit chosen. For example, a 100-Gbit/
sec signal can be transported using
three ODU3 (ODU3-3v), 11 ODU2
(ODU2-11v) or 10 ODU2e (ODU2e-
10v). (ODU2 and ODU3 refer to 10-
and 40-Gbit/sec rates, respectively, as
defined by ITU OTN. ODU2e refers to
the overclocked version of ODU2 with
a line rate of 11.1 Gbits/sec that some
optical transport equipment providers
have implemented to support the trans-
parent transport of 10GbE LAN PHY.)
An implementation based on ODU3-3v
results in significant bandwidth ineffi-
ciency and does not support compatibil-
ity with currently deployed 10-Gbit/sec
networks. ODU2e-10v, by contrast, is
attractive because of its seamless com-
patibility with the 10GbE LAN PHY
transport paradigm. Moreover, the use
of an OTN framework for transporting
100GbE signals provides the additional
benefit of a digital wrapper for perfor-
mance monitoring, fault isolation, and
protection of the circuit.
This type of super-wavelength
transport through the bonding of mul-
tiple 10-Gbit/sec channels over WDM
provides a number of benefits compared
with the serial approach. The use of con-
catenated 10-Gbit/sec wavelengths en-
ables 100GbE signals to be transported
using existing optical line systems with-
out cumbersome reengineering and ul-
traprecise compensation techniques.
The rapid adoption of 10-Gbit/sec tech-
nologies also has propelled 10-Gbit/sec
optical components along a steep vol-
ume-price curve, thus enabling low-cost
equipment. Finally, the use of concate-
nated transport containers enables the
transport link to function (with reduced
capacity) even under single-wavelength
failure conditions.
Integration and super-
wavelength services
The use of large-scale optoelectronic
photonic integrated circuits (PICs)
enables efficient, high data rate trans-
mission using a super-wavelength
approach. A PIC can integrate the
functionality of dozens of optical com-
ponents, including lasers, modulators,
detectors, attenuators, multiplexers/
demultiplexers, and optical amplifiers,
into a single device.
The figure depicts a commercially
available implementation of PIC tech-
nology with a 100-Gbit/sec trans-
mit PIC and a 100-Gbit/sec receive
PIC, each incorporating multiple op-
tical devices onto a chip some 5 mm
2
.
PIC technology may enable signifi-
cant improvements in the size, power
consumption, reliability, and cost of ul-
trahigh-bandwidth optical interfaces at
100 Gbits/sec or higher. PICs operating
with 10 wavelengths at 10 Gbits/sec per
wavelength for a total DWDM capacity
of 100 Gbits/sec have been widely de-
ployed. By comparison, each 10-Gbit/
sec channel in a conventional system
requires up to a half-dozen discrete op-
toelectronic components (e.g., lasers,
modulators, wavelength lockers, de-
tectors, attenuators, WDM multiplex-
ers, and demultiplexers).
Large-scale photonic integration may
enable even greater capacity and func-
tional integration. Recent R&D efforts
have demonstrated PICs capable of to-
tal aggregate data rates of 400 Gbits/sec
and 1.6 Tbits/sec per device pair. The in-
tegration and packaging consolidation
monolithic integration offers may also
enable future optical component costs
to follow a cost reduction curve defined
by volume manufacturing efficiencies,
greater functional integration, and in-
creased device density.
Service providers want a cost-ef-
fective approach to 100GbE that does
not require significantly re-architect-
ing their existing transport networks.
Serial 100-Gbit/sec transmission may
face technical and economic issues that
limit its viability for a number of years.
Hence, the most viable approach may
be to bond multiple wavelengths oper-
ating at 10 Gbits/sec into a super-wave-
length service. Such super-wavelength
services are possible today over opti-
cal transport infrastructures flexible
enough to carry sub-lambda, lambda,
and super-lambda services and allow
service providers to deliver next-gener-
ation services in a manner that is soft-
ware- and protocol-based rather than
infrastructure- or network-based.
Vijay Vusirikala is director of techni-
cal marketing at Infinera (www.infinera.
com). He may be reached via e-mail at
vvusirikala@infinera.com.
Photonic integrated circuits operating with 10 wavelengths at 10 Gbits/sec per
wavelength (top) enable transmitter and receiver modules with a total DWDM capac-
ity of 100 Gbits/sec (bottom). Each 10-Gbit/sec channel in a conventional system,
by contrast, requires up to a half-dozen discrete optoelectronic components.
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T-MPLS
transport
network
T-MPLS tunnel
IP/MPLS
PWE3
Backup LSP
Primary LSP
T-MPLS
switch
IP/MPLS
router
IP/MPLS
router
T-MPLS
switch
Transport MPLS (T-MPLS):
Based on ITU-T G.805
architecture
Same architecture as
SONET/SDH
Supports layering
Bidirectional LSPs
Protected end-to-end
Uses OAM for
monitoring and 50 msec
protection switching
T-MPLS tunnel
Supports multiple L2
and L3 services
Transports client IP/MPLS LSPs
Supports Ethernet and
legacy over client
pseudowires (PWE3)
T-MPLS multiservice support
Technology
T-MPLS and PBT/PBB-TE offer connection-oriented packet transport
dresses the shortcomings of Ethernet
while the latter addresses the complex-
ity of IP/MPLS. Yet despite their differ-
ent starting points, both are strikingly
similar and address a key concern of
carriers: how to migrate smoothly
from an existing SONET/SDH trans-
port to a fully packet-based network.
Understanding
transport networks
To understand the challenge of mi-
grating from SONET/SDH transport
networks, one has to understand the
nature of transport networks.
Some of the crucial characteristics
of transport networks include:
Connections are set up infrequently,
but have long holding times.
Multiple, often critical, services are
supported by one connection.
These aspects require a high level of
protection and availability.
Quality-of-service mechanisms are
required to ensure prioritization of
critical services.
To ensure that these requirements
are met, transport network opera-
tors require control and determinism.
They want full end-to-end control of
packet transport.
These requirements are at odds with
the dynamic, autonomous, self-man-
agement of connection-less networks
such as those based on IP/MPLS. Here,
signaling protocols allow the network
itself to determine, establish, and re-
route paths through the network. Net-
work management becomes reactive
rather than proactive.
PBT and T-MPLS both provide a
packet-based network approach that
meets the requirements of transport
networks outlined above. The key
characteristics that both PBT and T-
MPLS provide include:
End-to-end, bidirectional point-to-
point connections or tunnels that can
support a number of packet-based
services.
Protection of these tunnels on an end-
to-end basis with the ability to switch
over in less than 50 msec.
Assurance of OAM integrity on an
end-to-end basis to support protec-
tion switching, fault detection, and
monitoring of tunnels.
Use of network management systems
to control how tunnels are config-
ured or provisioned.
With PBT and T-MPLS, it is now
possible to envisage a migration from
SONET/SDH where the operation of
the network does not change dramat-
ically, where extensive retraining is
not required, and where existing work
practices can be retained.
T-MPLS basics
T-MPLS was the first attempt at re-
alizing a transport-centric packet
network. Standardized by ITU-T (in
G.8110.1, G.8112, and G.8121) and
based on ITU-Ts G.805 transport net-
work architecture, it focuses on sim-
plifying MPLS (mainly by eliminating
the IP control plane) while adding the
OAM and management functionality
needed to meet transport network re-
quirements.
The premise of T-MPLS is that
MPLS and its associated standards
already provide the carrier-class
mechanisms and maturity required
to successfully implement the re-
quirements of a packet transport net-
work. The only issue to be addressed
is the ability to maintain OAM in-
tegrity on an end-to-end basis, by
removing IP specific, non-transport
related functionality.
Thus, T-MPLS removes the follow-
ing functionality, which impedes end-
to-end OAM integrity:
Penultimate hop popping: This
mechanism pops the MPLS label at
the penultimate node, sending IP
packets to the last node. This eases
the processing at the final node, but
also means that MPLS OAM packets
cannot reach this node.
Label switch path (LSP) merging: In
fast reroute MPLS link protection, it
must be possible to merge two LSPs
into one at a node. However, this
can create problems in maintaining
OAM integrity.
Equal cost multiple path (ECMP):
ECMP allows MPLS packets to be
sent over multiple LSPs to the same
endpoint. However, this makes OAM
source identification and processing
difficult.
By removing such functional-
ity, OAM issues are resolved. The
changes allow the use of the follow-
ing transport mechanisms:
Establishment of bidirectional, end-
to-end LSPs.
Use of ITU-T Y.1711 OAM-based
mechanisms for monitoring and
protection switching (Y.17tom and
Y.17.tor under study).
Use of ITU-T G.8131/Y.1382 linear
protection switching for T-MPLS for
50-msec protection switching (based
on Y.1720).
Use of ITU-T G.8132/Y.1383 ring pro-
tection switching.
Figure 1 shows a typical T-MPLS
network configuration. The T-MPLS
network provides a primary and
backup LSP where switching can take
place within 50 msec. These T-MPLS
tunnels can support both Layer 3 IP/
MPLS traffic flows and Layer 2 traffic
flows via pseudowires.
The first implementations of T-
MPLS concentrate on point-to-point
connections configured and mon-
itored via a central network man-
agement system. However, work is
underway to provide automation of
configuration using GMPLS as a con-
trol plane (similar to existing OTN
and SONET/SDH networks).
PBT/PBB-TE operation
Until recently, the Ethernet protocol
has not been considered as a viable
independent transport mechanism.
However, PBT promises to change that
perception by addressing the key con-
cerns associated with existing Ether-
net implementations. These include:
The limitations of the VLAN ad-
dress space.
The inefficiencies of broadcasting,
flooding, and spanning tree (STP)
protocols.
End-to-end monitoring and 50-msec
protection switching.
The IEEE 802.1ah MAC-in-MAC
frame format is used to provide a very
large address space with built-in lay-
ering. Building on Q-in-Q and inde-
pendent VLAN learning, the customer,
provider, and backbone domains are
separated with their own addressing
spaces (C-VID, S-VID, and B-VID). A
new service identifier (I-TAG) is also
included to clearly identify the end-to-
end transport service. This approach
greatly improves the scalability of Eth-
ernet networks while enabling protec-
tion paths and service transparency.
Traditional Ethernet mechanisms
for resolving unknown addresses have
been criticized for not being able to
scale to the demands of large WANs.
Broadcasting and flooding are ex-
tremely inefficient on a large scale,
while STP does not provide the ro-
bust protection switching capabilities
required, even in improved versions
such as Rapid STP (RSTP).
By turning off broadcasting, flood-
ing, and STP, PBT avoids all of these
issues. Forwarding tables in switches
are populated and controlled via a
central management center, but only
on the edges of the network and only
on initial configuration. Nodes in-
ternal to the network can continue
to use IEEE 802.1ad provider bridg-
ing mechanisms to forward packets,
making the use of normal Ethernet
switches possible.
Figure 1. Transport MPLS (T-MPLS) provides a primary and backup label switch
path where switching can take place in 50 msec.
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PBT end-to-end protection
Backup
tunnel
B-DA1,
B-VID2
Primary
tunnel
B-DA1, B-VID1
PBT edge switch
802.1ad
forwarding
PBT edge
switch
PBT edge
switch
B-DA B-SA B-TAG I-TAG DA SA S-TAG C-TAG Payload data FCS
802.1ad frame
PBT end-to-end protected tunnel:
PBT edge switch adds PBT headers
Internal switches forward trafc using
802.1ad and IVL
Backbone MAC address identies
destination PBT edge switch
Backbone VLAN ID identies tunnel
Combination of B-MAC and B-VID provides
working and protected path identiers
802.1ag CFM OAM used for monitoring
path and initiating protection switching
PBT uses 802.1ah (PBB) frame format:
Backbone address (B-DA, B-SA)
Working/protected path identier (B-TAG)
Service identier (I-TAG)
Includes 802.1ad frame with supplier and customer identiers (S-TAG, C-TAG)
Note: TAG = TPID+VLAN ID
Optional
802.1ad
FCS
Technology
The most important requirement,
however, is the ability to provide an
end-to-end transport path that can be
protected and monitored on an end-
to-end basis. Since Ethernet is a con-
nection-less protocol, this concept has
not been addressed to date. By using
IEEE 802.1ag Connection Fault Man-
agement OAM packets, it is possible at
the edges of the PBT tunnel to detect
a fault and initiate a switchover to a
predefined failover path.
Figure 2 illustrates a typical PBT
network configuration, where the pri-
mary path is given by the combination
of the backbone destination MAC ad-
dress (B-DA) and the backbone VLAN
ID (B-VID). The backup path has the
same B-DA, but a different B-VID to
indicate that this is another possible
path to the same destination. Thus,
multiple paths to the same destination
could, in theory, be supported.
With all of these improvements, PBT
provides characteristics that make it
suitable for use in transport networks.
As noted previously, PBT is currently
not standardized, but is expected to
be part of the IEEEs PBB standardiza-
tion under the name PBB-Traffic En-
gineering (PBB-TE). It is expected that
this work will also consider GMPLS as
a possible control plane for configura-
tion, as in the T-MPLS case.
Application of PBT and T-MPLS
As can be seen above, T-MPLS and PBT
Figure 2. PBT provides an end-to-end transport path that can be protected and
monitored.
are very similar as network concepts,
both providing end-to-end, bidirec-
tional point-to-point connections that
can be protection switched in 50 msec
and centrally managed. With either of
these concepts it is now possible to ad-
dress migration from SONET/SDH.
Deploying PBT and T-MPLS would
keep existing transport network re-
sources, work practices, and orga-
nizations intact while providing a
packet-based network that can scale to
meet future bandwidth demand.
Both technologies also provide an al-
ternative to router deployment. Rout-
ers need only be deployed where Layer
3 capabilities are required with PBT
or T-MPLS tunnels providing secure
transport of data between routers.
This approach is very similar to
existing SONET/SDH and OTN
networks and provides an easier
transition to packet networks for or-
ganizations that are familiar with
these transport technologies. In this
respect, PBT and T-MPLS are more a
replacement for SONET/SDH than a
competitor to IP/MPLS, and one can
expect to see both connection-less
IP/MPLS and connection-oriented
packet transportsuch as that which
PBT and T-MPLS providecoexist-
ing in carrier networks.
Multicast remains an issue still to be
addressed by both PBT and T-MPLS.
At this time it is difficult to determine
how much of an issue this will be, as
current transport mechanisms do not
support multicasting, yet support mul-
tipoint-to-multipoint client services.
IPTV is viewed as the major driver of
multicasting requirementsalthough
it remains to be seen whether multi-
casting will occur in the transport net-
work or closer to the last mile.
However, the true test of PBT and
T-MPLS is yet to come. Performance
in the field with documented savings
in capex and opex will be the final de-
terminants of the success of these con-
cepts. In this regard, it is still far too
early to say which will succeed. Yet in
one sense they have already succeeded
in altering our perceptions of packet-
based networking and migration strat-
egies, which will ultimately lead to the
final solution: fully converged packet-
based networks.
Daniel Joseph Barry is director of
marketing at TPACK (www.tpack.com).
ICEA publishes two fiber-optic cable standards
By Michael D. Kinard
The Insulated Cable Engineers Association (ICEA)
has published two new optical fiber cable Standards:
ANSI/ICEA S-87-640-2006, ICEA Standard for Opti-
cal Fiber Outside Plant Communications Cable, and
ICEA S-112-718-2006, ICEA
Standard for Optical Fiber Ca-
ble for Placement in Sewer En-
vironments. The former is a
revision of the existing U.S. Na-
tional Standard, while the latter
is a new subject area.
Significant in this fourth re-
vision of ICEA S-640, the gen-
eral outside plant cable standard,
are the establishment of perfor-
mance parameters and require-
ments for the L-band at 1,625
nm and the definition of a very
low temperature rating for ca-
ble. The 1,625-nm requirements
are the first definition in the in-
dustry of L-band performance
for cables. Similarly, the very
low temperature rating defines
the North American extreme temperature expectation,
50C, and establishes appropriate performance param-
eters at this temperature.
ICEA S-718, the sewer cable standard, is a baseline per-
formance standard for cables to be used in storm water
and sanitary sewers. It is an outgrowth of and supports
the work in this area being carried out by ASTM. S-718
extends the requirements of S-640 with specific consid-
erations for cables in the environment found in sewers.
New and revised test procedures are included. It also fea-
tures an extensive informative annex discussing issues to
be considered in sewer applications.
ICEA S-640 has been approved by ANSI as a U.S. Na-
tional Standard and is under consideration for adoption
into the TIA system. ICEA S-718 is in the ANSI ballot
process for approval as a U.S. National Standard. They
join three other optical fiber cable standards in the long
list of ICEA cable standards. These are:
ICEA S-83-596-2001, Standard for Optical Fiber Prem-
ises Distribution Cable.
ICEA S-104-696-2001, Standard for Indoor-Outdoor
Optical Fiber Cable.
ICEA S-110-717-2003, Standard for Optical Fiber Drop
Cable.
STANDARDS WATCH
Michael D.
Kinard is a consul-
tant in the communica-
tions cable industry.
He is vice chair of TIA
Subcommittee FO-4.2,
Fibers and Cables, and
a member of ICEA and
the U.S. delegation to
IEC SC86A. He may
be reached at mkinard
@mindspring.com.
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TECH TRENDS
CONT. FROM PAGE 13
PON iSL2402 SoC, which is currently
available. The iSL2404, a quad-PON
SoC, will follow later this year; pin-
out and design documentation for
the iSL2404 will be released to part-
ners mid-2007. According to Moshe
Nattiv, Iambas chief executive officer,
the iSL2404 will feature a power-ef-
ficient multicore CPU architecture as
well as the entire SerDes and BCDR
functionality.
Other competition looms on the
horizon. Dror Salee, director, strate-
gic marketing, Communication Prod-
ucts Division at PMC-Sierra (www.
pmc-sierra.com), which entered the
PON space through its acquisition
of Passav, touts the PAS5211, which
integrates GPON MAC, SerDes, and
management functionality, VLAN
bridge support, multilevel frame
queuing, Ethernet MAC, encryption,
DBA hardware engines, and an em-
bedded CPU. Its currently in proto-
type as an FPGA.
Meanwhile, Cortina Systems (www.
cortina-systems.com) has GPON
plans for the assets it acquired from
ImmenStar. Prior to the acquisition,
ImmenStar had announced the Tu-
randot family, which would address
GPON OLT and ONT applications.
Cortina already had a toehold in the
OLT space, thanks to the introduction
of a GPON burst-mode SerDes device
that vice president of sales and mar-
keting Zino Chair says major system
houses are currently evaluating. Cor-
tina plans to integrate the burst-mode
SerDes function into the OLT SoC;
the resultant quad device will pro-
vide superior density, analog integra-
tion, and traffic management features
when compared with the competition,
Chair believes. Cortina has delivered
an FPGA version of the device to lead
customers. Like the rest of its GPON
chip line, the company plans to for-
mally introduce the OLT product ei-
ther late this year or early next year.
Looking for a home at home
While theres plenty of elbow room
in the central office space, things will
get significantly more crowded when
it comes to the ONT. BroadLight
again achieved first-to-market sta-
tus with the BL2338 for single-fam-
ily units and the BL2340 for multiple
dwelling/tenant units (MDUs/MTUs).
The devices feature the Runner mi-
crocode-based engine for cell/packet
service classification, filtering, reas-
sembly, and bridging at speeds neces-
sary to support voice over IP (VoIP)
and IPTV. They also include a CPU,
two Ethernet MACs, a GPON/BPON
MAC, SerDes and CDR functionality,
and a GEM interface.
BroadLight will have plenty of com-
petition. Iamba, for example, has been
demonstrating interoperability of its
iSN1000 in FPGA form for the last 12
months, according to Nattiv. Iamba
plans to release the pin-out and design
documentation for the ASSP version
this summer. The chip features three
main modules: a GPON MAC module,
the Iamba Triple Play Traffic Pump
(iTTP), and the Iamba Multicore CPU
Module (iMCM). The iTTP performs
QoS and class-of-service functions
including queuing, VLAN support,
IGMP forwarding, and frame forward-
ing at full wire speed. The iMCM fea-
tures several CPUs that handle PON
management, voice traffic, DBA, net-
work management, and other func-
tions. The chip also handles all BCDR
and SerDes functions on two Gigabit
Ethernet ports to accommodate data
handoff and interface to MoCA or
HPNA devices.
Meanwhile, Freescale Semicon-
ductor (www.freescale.com), Broad-
Lights primary competitor in the
BPON space, has released the SoC it
developed with Alcatel-Lucent, the
MSC7120. The chip features a CPU de-
signed to deliver 8.5-Gbit/sec peak I/O
throughput and a hardwired packet
engine for line-rate forwarding of iMix
packets, an integrated OMI/CDR, a
pair of Ethernet MACs, a GEM MAC,
and a 32-bit DDR1/2 memory control-
ler. Unlike the BroadLight and Iamba
offerings, the MSC7120 also features
an integrated DSP for internal support
of four channels of VoIP.
While Alcatel-Lucent enjoyed first
crack at the device, other alpha cus-
tomers also have received samples of
the chip, says Suhail Agwani, market-
ing manager for Freescales broadband
CPE portfolio. General availability
will depend on market dynamics, Ag-
wani adds.
PMC-Sierra planted its GPON ONT
flag at OFC/NFOEC with a reference
design based on the PAS6201-G0. The
SoC leverages the design of the com-
panys PAS6201 EPON ONU chips.
According to Salee, that means use
of the companys GigaPASS architec-
ture, which uses configurable hard-
ware machines that perform data
processing to support full 1-Gbit/
sec line rates. That enables the con-
trol processor to handle other func-
tions. The SoC performs QoS queuing,
packet classification, VLAN bridging
and manipulation, and IPTV filter-
ing and features an internal Ethernet
MAC. The GPON SerDes and framer
functions reside in a companion chip,
the PAS6211. Both the PAS6201-G0
and PAS6211 are sampling now.
Cortina Systems, as mentioned pre-
viously, matches its OLT work with
chips for CPE. The company has both
single-family and MDU devices on its
roadmap. Traffic management capa-
bilities again will prove a significant
point of differentiation, Chair believes,
as will the devices integrated switch-
ing capabilities. Like the OLT offering,
formal announcement is expected ei-
ther late this year or early in 2008.
Conexant (www.conexant.com) be-
lieves it will trump all of these com-
panies with the Xenon IIIG CX95202.
The chip, which debuts this month,
combines GPON ONT and home gate-
way functions into a single device, ac-
cording to Rajiv Dighe, director of
PON products at Conexant. Full de-
tails of the device were not available
at press time; however, Dighe did say
that the chip will contain a deep clas-
sification engine, accommodate four
voice channels, and support bridging
and multicasting at full line rates. It
also will provide complete Layer 3
capabilities supported by an integrated
hardware accelerator so you can get
Layer 3 performance at hundreds of
megabits, while the Layer 2 perfor-
mance is at full line rate, according to
Dighe. Conexant expects to have sam-
ples of the chip in customers hands
at the time of its announcement, and
hopes to have the device in production
either late in the third quarter or early
in the fourth quarter of this year.
Several other companies also re-
ported having such a device on their
product roadmaps; competitors to
the CX95202 should emerge quickly.
In the meantime, Dighe says the com-
pany also plans to introduce a GPON
OLT SoC in the future.
Six GPON ONT sources would seem
to be enough to give system design-
ers plenty of choice. However, more
companies have announced their in-
tention to enter the field. Mindspeed
Technologies (www.mindspeed.com)
announced this past February that it
would collaborate with PON systems
supplier Terawave Communications
(www.terawave.com) to create an ONT
SoC for the general market. The chip
PMC-Sierras new PAS6201-G0
gives the company a foothold in the
GPON market. The chip is paired with
the PAS6211.
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The Teknovus TK3714 ONT chip supports both 1.25- and 2.5-Gbit/sec down-
stream traffic so carriers can upgrade their downstream speeds without having
to change each ONU.
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Technology
will debut later this year; Preet Virk,
vice president of marketing for the
multiservice access unit at Mindspeed,
says the Comcerto 200 will integrate
a GPON PMA (SerDes), optical inter-
face, and GPON MAC functions with
support for DBA, encryption, and
FEC. It also will include an approxi-
mately 8-Gbit/sec nonblocking Ether-
net/GEM switch, two Gigabit Ethernet
MACs, and a processor. The SoC will
support IPTV HW-IGMPv3 snooping
and proxy.
Meanwhile, several sources have
their eye on Infineon (www.infineon.
com) as a potential competitor. The
company currently remains cagey
about its plans. As a broadband player,
we are heavily interested in the PON
business, says Imran Hajimusa, vice
president for communications access,
North America, at Infineon. There is
nothing that has been commercially
announced, but we are interestedly
watching this market.
With all these companies jumping
into the GPON market, it should be
noted that at least one has departed.
According to Mitch Kahn, AMCCs
(www.amcc.com) vice president of
marketing for transport products,
the company had developed a GPON
MAC. But a closer look at the market
revealed rapidly declining average
selling prices, which made the busi-
ness case for fully entering the market
questionable, particularly considering
the number of competitors. Kahn says
AMCC has decided to wait and see if
the market evolves in a more attrac-
tive way.
EPON marches on
Compared with the activity on the
GPON end of things, the EPON space
appears pretty quiet. Most of the ac-
tivity here involves developing devices
compatible with the different versions
of Asian EPONJapan and China
have slightly different standards, with
much of the differentiation centered
around encryption.
PMC-Sierra/Passav got its start
in EPON, where it enjoyed consider-
able success. The PAS5201 is its flag-
ship EPON OLT device. The chip
meets China Telecoms specifica-
tions, but can also be used in the Jap-
anese and Korean markets, according
to Salee. The quad unit integrates
an Ethernet MAC, EPON manage-
ment, packet classification (includ-
ing support for VLANs, video with IP
multicast, IPv4, and IPv6), FEC, en-
cryption, programmable DBA, and
an embedded CPU. Salee points to
the FEC feature as an important dif-
ferentiator. PMC-Sierra pairs the de-
vice with the PAS6301 ONU chip, an
SoC that integrates MAC functional-
ity with SerDes, FEC, Layer 24 clas-
sification, and an embedded CPU. The
aforementioned PAS6201 preceded the
PAS6301 to market; like the PAS5201,
the PAS6301 meets China Telecom
specifications but can be used in a va-
riety of markets.
PMC-Sierras main competition
in EPON has come from Teknovus
(www.teknovus.com), which also has
seen its chips deployed in Japan, Ko-
rea, and China. On the OLT side, the
single-port TK3721 MAC controller
integrates EPON and Gigabit Ether-
net MACs and an ARM processor for
bandwidth provisioning, among other
duties. The chip provides service pol-
icy, security, and authentication man-
agement as well as DBA control.
The company provides a variety of
devices for CPE. The TK3715 com-
plies with China Telecoms specifica-
tions. It derives from the previously
released TK3713, which Teknovus
has optimized for IPTV. The TK3713
contains an EPON MAC, SerDes,
line-rate Layer 2/3/4 classification
and filtering, a switch, bidirectional
encryption, FEC, integrated packet
buffering, two subscriber ports, and
an embedded processor. It supports 40
fully configurable queues (20 in each
direction) and VLAN services.
The Teknovus TK3714 ONT chip is
unique in that it supports both 1.25-
and 2.5-Gbit/sec downstream traffic.
Designed for carriers who envision
upgrading their downstream speeds
without having to change each ONU,
the Turbo device has been deployed
in KDDIs network, according to the
company.
But the race for design wins in
EPON involves more than two com-
petitors. ImmenStar had already re-
leased a suite of EPON products, the
MuLan line, before Cortina Systems
acquired it. The chip family, which has
been deployed in Japan, included the
IS8020 quad-port and IS8030 single-
port OLT chips and the IS8010 and
IS8015 ONU chips. The IS8010 was
optimized for use with ImmenStars
OLT chips, while the IS8015 was de-
signed to be interoperable with OLT
chips from other vendors. Chair says
that EPON systems using versions of
the chip family for the Chinese mar-
ket are currently in certification trials
with China Telecom.
Conexant, meanwhile, will comple-
ment its GPON ONT/gateway chip
with an EPON version, the Xenon IIIE
CX95203. (EPON OLT SoCs also are in
the companys future.) The device is on
the same development schedule as the
GPON device. Dighe says versions op-
timized for the major Asian markets
will be available. The company also
has the CX9520X Xenon II family of
EPON ONT chips, which it announced
in March 2006. The line supports sin-
gle-family, MDU/MTU, and FTTN
applications. The ICs are designed to
provide VoIP and IP multicasting sup-
port, among other functions.
Finally, Centillium Communica-
tions Inc. (www.centillium.com) re-
cently expanded its EPON offerings
to include the Mustang 300 SoC for
ONUs. The chip supports traffic man-
agement, classification, and filtering
for up to 256 multicast groups and up
to eight different service types, which
Centillium asserts is the highest in the
industry. Available now, the Mustang
300 integrates all packet buffer and
program memories; the MIPS proces-
sor has 192 kbytes of memory, and 1
Mbyte of internal packet buffer mem-
ory is included as well.
The Mustang 300 complements
Centilliums OLT device, the Colt CE
100. The single-line device integrates
an 802.1d bridge, SerDes, CDR, and
CPU; it also supports DBA, VLAN,
IGMP snooping, and encryption at
wire speed.
A single line out
of an OLT could
serve as many as
64 CPEs, although
actual numbers
will likely be signi-
ficantly smaller.
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PRODUCT PROFILE
Technology
Though president and chief executive officer
Thomas Mossberg calls the half-dozen people who
compose startup LightSmyth Technologies (www.
LightSmyth.com) a conservative bunch, those
same people are responsible for leveraging deep ul-
traviolet (DUV) photolithography, borrowed from
the electronics world, to develop nanometer-scale
optical components. The first such component, a
four-channel CWDM multiplexer/demultiplexer,
is based on a device that LightSmyth calls a holo-
graphic Bragg reflector.
The physical device is similar to an arrayed wave-
guide (AWG), says Mossberg, in that it comprises
three layers of glass on a silicon substrate, and the
light is confined to the center layer. However, Light-
Smyth uses DUV photolithography to etch a very
fine pattern of lines into the surface of one of those
layers, and that pattern serves as a filter, reflecting
only light within a certain bandwidth.
For this reason, the LightSmyth device func-
tions more like a thin-film filter, even though it is
made in the integrated format of an AWG. When
light is traveling through the waveguide, its hit-
ting the lines that we have
patterned and etched us-
ing lithographic tools and
from each interface, theres
a reflection, explains Moss-
berg. The sum of all the
reflections from those in-
terfaces produces the out-
put signal. The same is true
for a thin-film filter, which
is made from multiple thin-
film layers, the exact spac-
ing and refractive indices of
which allow the filter to se-
lect specific wavelengths.
While the physics of the thin-film filter and the
holographic Bragg reflector may be the same, says
Mossberg, the format is radically different. The
LightSmyth device is monolithically integrated
whereas thin-film filters are intrinsically discrete
devices. For this reason, he says you could de-
scribe the holographic Bragg reflector as a fully
integrated thin-film filterand its not just one
filter, he notes. It can be a whole array of them
integrated on the same chip.
LightSmyths success hinges on its use of DUV
photolithographic patterning tools, which enable
quarter-micron and finer resolution. AWGs, by
contrast, typically cannot be made much finer
than several microns. LightSmyths holographic
Bragg reflectors are smaller by a factor of 10.
Moreover, he says, holographic Bragg reflec-
tors function via multipath interferencesimi-
lar to thin-film filtersand thus provide flexible
passband control without adversely affecting the
insertion loss. The basic problem with the AWG
is that the outputs to go back into the fibers are
singlemode, and they only accept a very specific
angular range, Mossberg explains. An AWG
sends different colors in different angles, but sin-
glemode receivers dont like that. Like the thin-
film filter, the holographic Bragg reflector sends
light back in a single direction. For this reason, he
says, we can make very flat-top, controlled pass-
band filters with no impact on insertion loss.
Searching for a partner
LightSmyth Technologies has taken its pat-
ented holographic Bragg reflector technology
and leveraged it in the development of a sin-
glemode-compatible, four-channel CWDM
multiplexer/demultiplexer. The monolithically
integrated silica-on-silicon device is athermal
and polarization insensitive to 0.2 dB.
According to Mossberg, development of the
CWDM multiplexer is
complete, and samples are
available; several already
have been shipped to select
customers. However, the
company has decided to
partner with a larger pro-
ducer to bring the device
to market, and Mossberg
reports that the company
currently is in discussions
with potential production
partners.
Looking ahead, Moss-
berg believes the same de-
vice is compatible with direct implementation in
indium phosphide (InP). For now, a key obstacle
to silicon photonics is the challenge of coupling in
and out of the silicon chips, which is complicated
by insertion loss and a high refractive index.
LightSmyth Techologies and others, including
Luxtera (www.luxtera.com), are hard at work to
overcome this and other challenges.
Mossberg says there is a great deal of con-
nection between those areas of interest, of tak-
ing silicon photonics and making it practical by
eliminating the problem of coupling in and out
of the material. For his part, he hopes to see mo-
mentum build around DUV photolithography,
which he cites as the enabling tool for practical
nanophotonics.

By Meghan Fuller
Startup makes nanophotonics
device with DUV photolithography
LightSmyth says its four-channel CWDM
multiplexer/demultiplexer is the first photon-
ic device to take advantage of the deep ul-
traviolet photolithographic patterning tools
now available in the electronics industry.
Integrated EOE cable assemblies
While standard copper cable assemblies
strain to meet new speed and link length
demands in data centers, ZLynx one-piece
fiber-optic cable assemblies have inte-
grated, industry-standard electrical termina-
tions capable of 20-Gbit/sec transmission
in both directions and 5-Gbit/sec duplex
four-channel data transmission, for dis-
tances up to 100 m. The standard con-
nector, compact size, and robust latch
mechanism allow ease of use with most
equipment chassis. The optical cable uses
3.3 V supplied directly from the electrical
port connector. Typical power consumption
is just 1 W/connector. Currently sampling,
ZLynx products target InfiniBand DDR (dual
data rate) at 45 Gbit/sec per channel
and 10-Gigabit Ethernet (10GbE) XAUI at
43.125 Gbit/sec applications.
Zarlink Semiconductor, www.zarlink.com
980-nm pump technology
The 980-nm OceanBright pump laser tech-
nology is designed to be used in erbium-
doped fiber amplifiers (EDFAs). The pump
module incorporates the Bookham genera-
tion eight laser chip (G08), is capable of ex-
ceeding 400 mW at operating temperatures
from 0 to 45C, and complies with multi-
source agreement requirements for use in
uncooled applications. It is one of a range
of pump products that includes ultrahigh-
power cooled butterfly and uncooled high-
power singlemode and multimode pumps.
Reliability of the 980-nm pump laser tech-
nology has been proven with more than
350,000 units shipped and 14 billion de-
vice hours with less than 25 FIT.
Bookham, www.bookham.com
COMPONENTS
page 21
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Technology
Customizable fiber-optic
cable assemblies
Designed to provide maximum flex-
ibility and full customization, the
CTDI fiber-optic line is suitable for
any application requiring durable,
high-quality, and reliable cabling.
Assemblies are currently avail-
able in simplex, duplex, and up to
24-pair fan-out construction with
SC, LC, and ST connector options,
and are constructed using single-
mode or multimode fiber. Hybrid
connection and custom length as-
semblies, priced up to 10% lower
than competitive products, are
also available. All products meet
Telecordia GR-326 compliance
standards and undergo rigorous in-
house testing to ensure quality.
Custom Test Design Inc. (CTDI),
www.ctdi.com
Polarization-independent
telecom gratings
E-PING polarization-independent
telecom gratings will be produced
on an OEM basis to specific cus-
tomer requirements; with standard
specifications, the gratings offer
greater than 90% diffraction effi-
ciency, less than 0.25-dB polariza-
tion-dependent loss, and less than
0.25-dB wavelength-dependent
loss. These specifications are up-
held over an extended wavelength
range of 1,510 to 1,596 nm. Man-
ufacturers of wavelength-selective
switches and reconfigurable opti-
cal add/drop multiplexers have ad-
opted the gratings as a result of
the inherent stability of the fused
silica transmission grating technol-
ogy over a broad bandwidth. The
E-PING grating also has been incor-
porated into the extended wave-
length I-MON FBG Sensor System
interrogation monitors.
Ibsen Photonics,
www.ibsenphotonics.com
10G PHYs for SFP+
applications
The AEL2000 family of SFP+ PHY/
SerDes includes single- and mul-
tichannel LAN PHY devices that
combine low-power PHY/SerDes
technology with the fully compliant
IEEE 802.3aq 10GBase-LRM EDC
engine. The devices include 10-
Gbit transmit pre-emphasis and
support for special SGMII modes
to facilitate backward compatibil-
ity with 1GbE SFP applications.
They also feature integrated PRBS
and packet-level test pattern gen-
erators and checkers for effec-
tive device built-in self test (BIST)
functions. The AEL2000 family of
SFP+ PHYs is designed to address
all the emerging system architec-
tures. The devices provide added
flexibility by interoperating with lin-
ear SFP+ modules, limiting SFP+
modules, and copper (twin-ax).
Aeluros Inc., www.aeluros.com
INSTALLATION
Splice-on connector system
A new splice-on connector system
increases speed and limits inser-
tion loss during field fiber repair
and customized FTTH/FTTP instal-
lations. FITELs innovative connec-
tor termination system consists
of factory-polished ferrules with
precleaved fiber stubs along with
high-strength, snap-on connector
assemblies, available with SC and
FC connector types. Total inser-
tion loss using this fusion splice
termination method measures 0.3
dB or less for singlemode fiber.
The connector termination feature
on the FITEL S122A clad align-
ment splicer and FITEL S177A core
alignment splicer eliminates the
need for splice trays, resulting in
easier fiber management, reduced
storage requirements, and faster
installation times.
Furukawa America Inc.,
www.FurukawaAmerica.com
Self-adjusting fiber cleaver
The benchtop AutoCleaver S1 au-
tomatically detects the edge of
a fibers coating and adjusts the
bare fiber length to a preset value.
(The requested bare fiber length
must be specified by the cus-
tomer.) The cleaver is available
for 80- and 125-m fibers. Cleave
angles are typically less than 0.3.
For example, the standard devia-
tion of the bare length is 0.01 for
a 125/250-m fiber and 0.06
for a 80/170-m fiber (bare fiber
length in both cases was 3.4 mm).
A built-in microprocessor controls
all the vital parameters and set-
tings. The AutoCleaver S1 has a
diamond blade with an extensive
life, controlled by a patent-pend-
ing system that generates optimal
cleave angles.
Nyfors Teknologi AB,
www.nyfors.com
Connectors training DVD
The Fiber Optic Connectors DVD
is the eighth release in the Staff
Development series of instruc-
tional DVDs. This DVD focuses
on the many disciplines that are
associated with connector termi-
nation, testing, inspection, and
cleaning. The material is divided
into menu-selectable chapters for
easy access. Quizzes are included
for content review and/or test-
ing. Other covered topics include
discrete parts of connectors; op-
tical and mechanical tolerances
and their impact on optical perfor-
mance; an in-depth look at how to
achieve the best possible perfor-
mance; and specialty connectors
such as multifiber connectors, mili-
tary and aerospace connectors,
attenuators, terminators, and loop-
back devices.
The Light Brigade,
www.lightbrigade.com
Connector cleaning kits
Five new fiber-optic connector
cleaning kits are now available.
The kits include items such as an
inspection scope, alcohol clean-
ing wipes, adapter swabs, and reel
cleaners. 200X and 400X micro-
scopes are also available. Each
kit is neatly packed in one of two
available carrying cases. Supplies
are also priced to sell separately
for restocking.
Fiberdyne Labs Inc.,
www.fiberdyne.com
TEST EQUIPMENT
Server configuration tool
Configuration Manager radically
reduces software test cycles
through automated reconfigura-
tion of computers used in test lab
environments. The software allows
test engineers to automate the
setup, archiving, and restoration of
any UNIX, Windows, or Linux com-
puter in about 15 minutes to one
hour. The system is designed for
test labs, providing transparency
to the configured device.
EdenTree Technologies Inc.,
www.edentreetech.com
IPTV emulation/test
application
With the Aptixia IxNetwork 5.20
application running on the Optixia
hardware platform, engineers can
test the routing control plane and
simultaneously stress the data
plane by directing both real-world
video traffic and packet-based
network traffic over emulated to-
pologies. The application char-
acterizes the performance and
scalability of routers, switches,
and other Layer 2/3 forwarding
devices by running large-scale
routing protocol emulations and
generating realistic video traffic.
Technologies supported include
IP routing, MPLS, multicast, and
bridging.
Ixia, www.ixiacom.com
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iTerra Communications, LLC 2400 Geng Road, Suite 100 Palo Alto, CA 94303
Phone: (650) 424-1937 Fax: (650) 424-1938 www.iterrac.com
Metro, long haul or in between
Let iTerra drive your design
Component Solutions for the Communications World
From our unique iT6155 LiNbO3 modulator driver to our
NRZ-to-RZ and NRZ-to-duobinary converter/drivers,
iTerra provides unsurpassed performance, reliability,
and design flexibility for applications through
12.5 Gb/s.
We've designed the iT6134 and iT6144
converter/drivers in the same SMT package
so you can interchange them on the same
circuit board without extensive redesign.
Our iT6155 not only delivers industry-
leading performance, it's a superb
replacement for a leading industry
modulator driver. And our iT6135C
NRZ-to-RZ driver targeted for the
submarine market delivers best-in-class
performance as well.
See for yourself: Visit us at www.iterrac.com today,
or call us at (650) 424-1937. We're sure you'll agree
that iTerra lightwave components are the best choice
for driving your design.
iTerra Encoder/Modulator Driver Solutions
Part Bit rate Input voltage Output voltage Peak-to-peak Description
(Gb/s) (Vpp) (Vpp) jitter (ps)
iT6134 10.709 0.30 to 0.50 6.0 <10.0
NRZ-to-RZ, low power
converter and driver amplifier
iT6135C 10.709 0.40 to 0.50 4.0 to 7.5 6.0
NRZ-to-RZ converter
and driver amplifier
iT6144
9.9 to 11.5
0.35 to 1.0 6.0 to 10.5 1.6 (rms)
NRZ-to-duobinary converter
and driver amplifier
iT6155 9.9 to 12.5 0.25 to 0.80 3.0 to 6.5 2.0 (rms)
NRZ modulator driver
iTerra Modulator Driver and Converter Solutions
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_________________
Focus
on
Source: Verizon Business
KOREA
Keoje
Tanshui
Nedonna
Beach,
OR
Chongming
Qingdao
Trans-Pacic Express conguration
Applications
Innovative component, subsystem,
system, and network design
examples and alternatives
CASE BY CASE
Cont. on pg 24
Cont. on pg 26
Cont. on pg 28
By Kevin Wade
Multiservice switching
platforms enable global
Ethernet services
Service-enabled networks aid convergence
come to depend on from their TDM-based
networks.
The ITU G.709 Optical Transport Network
(OTN) standard has emerged as a vehicle to
enable such convergence and to provide a
common and SONET/SDH-like operational
model for network administration, perfor-
mance monitoring, and fault isolation with-
out altering the individual services. As Figure
1 shows, the development of OTN is a critical
step in developing a fully automated network.
Using OTN, multiple networks and services
such as legacy SONET/SDH, Ethernet, storage
protocols, and video can all be combined onto
a common infrastructureand even onto a
single wavelength.
Market requirements
Transport network requirements from a
network operators perspective are simple
consistent, deterministic, and low-latency per-
formance regardless of the load placed on the
network. Inherent in that is the ability to scale
to meet increased demand. With that in mind,
lets examine the two fundamentally different
architectures being used to solve the needs of
emerging applications like VoIP, broadcast
video, web-enabled business services, and net-
worked remote storage.
One method of building a network to deliver
advanced services leverages a routed network
architecture. This architecture relies on rout-
ers to identify and prioritize the various traf-
fic types. It looks deep inside the contents of
packets and makes switching decisions based
on what it finds.
The second method, the service-enabled
transport network, focuses on delivering trans-
parent connections for each service, alleviating
the need for prioritization
Since its February 2005 acquisition of MCI, Verizon Busi-
ness (www.verizonbusiness.com) has continued to make
significant investments in its global, facilities-based infra-
structure. Proud of its reputation for driving the optical
community pretty hard, in the words of Fred Briggs, ex-
ecutive vice president of network operations and technol-
ogy, the carrier continues to push the industry in terms of
data rates, reliability metrics, and customer service. Briggs
used a recent interview to sound off on Verizons plans for
2007, its roadmap for the future, and its need to improve
customer service to maintain a competitive edge.
Network upgrades
Verizon Business recently confirmed that it is increasing the
capacity of its ultralong-haul (ULH) network from the cur-
rent rate of 10 Gbits/sec to 40 Gbits/sec, beginning with the
high-traffic corridor between New
York City and Washington, DC. Ac-
cording to the carrier, it will mark
the industrys first commercial roll-
out of 40G. Additional routes will
be upgraded throughout the year.
Briggs says the overall U.S. ULH
rollout will be about 60% complete
by the end of this year, and he con-
firms that this year will see the be-
ginning of a ULH rollout in Europe
as well.
By Meghan Fuller
Verizon Business
plots business plan
for 07 and beyond
Increasing business globalization and the rapid
adoption of high-capacity, IP-based services
continue to drive the growth and transforma-
tion of international optical networks. Ether-
nets role in this transition has also evolved
in recent years. Once viewed solely as a new
high-speed interface for data services, Ether-
net is now broadly accepted as a convergence-
layer technology for delivering the full array of
packet-based voice, video, and data services.
Optimizing a metro area network
for the delivery of Ethernet services is
challenging enough, but the challenges
increase further for carriers looking to of-
fer Ethernet services globally to large enter-
prises and to other carriers on a wholesale
basis. Because capacity is a finite and valu-
able resource on undersea networks, interna-
tional carriers must find ways to maximize
bandwidth efficiency. In addition, they must
interconnect with multiple, diverse local/ter-
restrial transport networks and offer a range
of Ethernet connectivity options with band-
width scalability and advanced service-level
agreements (SLAs). As a result, many global
carriers are looking to move beyond their first-
generation platforms to next-generation Ether-
net platforms with far more advanced service
delivery features.
Ethernet then and now
In the past, carriers treated Ethernet as an an-
cillary service to their high-margin TDM voice
and Frame Relay data services. Ethernet
was a niche market in which few com-
panies demanded service. As a result, car-
riers first deployed Ethernet platforms with
the intention of offering only a limited range
of service offerings, usually in one or perhaps
a handful of geographic areas. These first-gen-
eration services were not scalable or manage-
able. In addition, they were typically limited to
1 Gbit/sec capacity or less with little bandwidth
granularity and did not support any quality-of-
service (QoS) performance metrics for high-
value SLAs.
Meghan Fuller
is senior editor at
Lightwave.
With landing points in Qingdao and Chongming, China,
and Nedonna Beach, OR, the Trans-Pacific Express under-
sea network provides direct 10-Gbit/sec wavelength access
between the U.S. mainland and China. TPE will also have
landings in Tanshui, Taiwan, and Keoje, South Korea.
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Performance comparison
10
50
10
20
30
40
60
70
80
90
20 30 40 50 60 70 80 90
Line/switch utilization (%)
10
50
10
20
30
40
60
70
80
90
20 30 40 50 60 70 80 90
0.0%
0.1%
10X 10X
Line/switch utilization (%)
Loss probability (%) Loss probability (%)
Applications packet loss in routed
network architecture
a) b)
Packet loss in service-enabled
transport network
Video
threshold
VoIP
threshold
Web
services
threshold
1.0%
10%
-10 2000 2005 +10
Source: Ovum-RHK Inc.
ASON
Asynchronous
transmission
WDM
capacity
2nd Gen
SONET/SDH
SONET/SDH
manageability
ROADM
3rd Gen
SONET/SDH
Next
big
thing
DCS
displacement
Data overlays Data efciency Multilayer manageability
Timeline of the fully automated network
OTN wavelength
manageability,
G.709
Applications
Service-enabled networks aid convergence
and improving the performance of
the network. The critical difference, of
course, is that routed networks operate
at ISO Layers 3 and above, where they
are easily affected by demand spikes.
Service-enabled transport networks
operate at Layers 1 and 2, where per-
formance is far more deterministic
and easily controlled.
The approach of intrusively in-
specting each packet is complex and
problematic in many ways. At each
switching point of a routed network,
no matter how efficient it is, a com-
plex set of instructions has to be ex-
ecuted and bits have to be transferred
into and out of memory buffersadd-
ing delay and latency. Figures 2a and
2b compare how the level of demand
affects performance (as a function
of packet loss) of routed and service-
enabled transport networks, and the
thresholds at which routed networks
become untenable for different types
of services.
Routed networking proponents ar-
gue that they can get by with less WAN
bandwidth; but this argument fails
when the network is under the least
bit of stress. During periods of peak
load, high-priority packets are trans-
mitted at the expense of lower-priority
packets. Those lower-priority packets
are lost, triggering packet retransmis-
sions that in turn also can be bounced,
leading to even more packet retrans-
missions. With all of this occurring,
network latency increases and appli-
cation performance decreases.
To overcome these obstacles, routed
networking users will eventually need
additional bandwidth. In fact, pub-
lic network operators will be forced
to upgrade their routed network to
meet service-level agreements. At
that point, the bandwidth required
by a routed network will be similar to
the amount of bandwidth the service-
enabled transport network is already
providingwhich means the expen-
diture of considerable time and hands-
on technical resources getting there.
In fact, based upon a study Ciena has
conducted, the routed network cost of
ownership is 30% higher than a ser-
vice-enabled transport network.
Service transparency is another
major advantage for service-enabled
transport networks as it allows a cli-
ent device to maintain visibility across
the network. Because routed networks
have limited bandwidth to work with,
they attempt to manipulate the data
streams by removing idle frames,
limiting packet length, and chang-
ing frame IP and MAC addresses as
attempts to tune the network and
optimize performance. The problem
is that when frames or packets are
manipulated, the client devices lose
management visibility so there is no
guarantee that the service at the ter-
mination point is the same as the ser-
vice that was originated.
The service-enabled transport net-
work does not have these issues be-
cause it has sufficient, reconfigurable
bandwidth that it can dedicate to each
service or application. Each frame or
packet is wrapped in an OTN en-
velope and all processing and man-
agement is done on the OTN header,
meaning all client header informa-
tion is maintained. This is discussed
in more detail below.
Last, there is the security issue. Rout-
ers can look inside a packets contents.
As such, they are the ideal vehicle for
hackers to penetrate the network. Be-
cause OTN operates at Layer 1 of the
ISO stack, there is no packet inspection
that hackers can exploit. Also because
it is Layer 1, services from different cli-
ent devices remain isolated from one
another rather than mingled in a com-
mon data stream. This attribute makes
it far more difficult to compromise an
entire network.
At this point, its clear that transpar-
ent service-enabled transport networks
are the superior approach for todays
performance-sensitive services. They
perform better than routed networks,
are unaffected by network utilization
levels, do not require continuous tun-
ing, and are more secure. More im-
portant, service-enabled transport
networks can be used for any service
typeincluding TCP/IP, MPEG, and
storage protocolsregardless of their
performance requirements because of
the unique capabilities OTN brings in
providing a common transport layer.
What is OTN?
The key to understanding OTN can
be summed up in one wordtrans-
parencywhich makes it the ideal
technology to build a converged net-
work. OTN, or digital wrapper as it
is sometimes called, is an ITU stan-
dard that was unified from compet-
ing standards being developed in the
ITU and ANSI.
As end users continue to deploy in-
creasingly complex networks using
multiservice provisioning platforms
and routers, they are losing service
transparency because they cannot
access SONET/SDH overhead bytes
or the data communications channel
(DCC) that carries all the manage-
ment bytes and inter-nodal commu-
nications used to determine network
paths and link states. A traditional
SONET/SDH network will strip out
these bytes and break the
end-to-end communica-
tions and topology dis-
covery. OTN supports its
own separate overhead
for performance monitor-
ing and fault signaling, as
well as a general commu-
nications channel (GCC)
for remote management,
software downloads, and
other control functions.
OTN specifications
provide for a robust
management overhead
analogous but superior
to SONET/SDH using
six levels of performance
monitoring for advanced
fault isolation and service-
level management; there-
fore, network operators do not have to
sacrifice the ability to manage at both
the payload and service levels. In fact,
an OTN payload can fully encapsulate
a SONET/SDH frame without termi-
nating the SONET DCC so that re-
mote add/drop multiplexers (ADMs)
can continue to be managed in the
same manner, and topology discov-
ery will still work between customer
equipment.
However, OTN does much more
than transparently transport SONET/
SDH. It is also highly effective in
supporting asynchronous data ser-
Figure 2. As these graphs illustrate, routed network architectures suffer extensively from
packet loss (a), a problem the service-enabled network (b) doesnt face.
Figure 1. The OTN is a significant step along the path toward a fully automated
network.
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OTN hierarchy
OLA OLA OADM
ADM ADM
OCh
OMS OMS
OTS OTS OTS OTS
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PMD5000 System
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Analysis of Installed Networks: Ring, Long Haul, Star, etc.
I Communication Between Interrogator Unit & Receiver Unit
via TCP/IP
I PMD Monitoring of Single Wavelengths on Live Networks
I Analysis of Networks with Amplifying Components
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Applications
vices such as Gigabit Ethernet (GbE),
10GbE, all speeds of Fibre Channel,
ESCON, and FICON that do not have
the same physical-layer performance
monitoring capabilities and fault iso-
lation necessary for a high quality of
service. Through its advanced perfor-
mance monitoring, OTN brings those
capabilities to asynchronous services
without sacrificing the qualities that
make those services attractive in the
first place, such as low cost and ease
of installation.
OTN is also the only transport
layer that can carry a full 10GbE
LAN PHYthe standard interface
on IP/Ethernet equipmentinclud-
ing any and all vendor-proprietary
overhead bytes that the routers use
for additional control and manage-
ment. This is a critical feature since,
with the rapid migration toward IP/
Ethernet-based infrastructure, it is es-
sential that there be a seamless inter-
face between the service layers (Layers
2 and 3) and the transport layers (Lay-
ers 0 and 1) so that there is no disrup-
tion of the functions these layers are
designed to perform.
The inherent flexibility of OTN is
enabled by its ability to extend this
transparency to the timing plane.
This ability allows the mixing of both
synchronous and asynchronous sig-
nal types on a common wavelength.
Moreover, synchronous services with
different clock sources can be trans-
ported side by side, something not
possible in a SONET/SDH network.
An OTN network is made up of sev-
eral networking layers. The service
layer represents such end-user services
as GbE, SONET/SDH, Fibre Channel,
or any other protocol. For asynchro-
nous services such as ESCON, GbE, or
Fibre Channel, the service is passed
through a Generic Framing Proce-
dure (GFP) mapper. The optical chan-
nel payload virtual container (OPVC)
Figure 3. OTN supports a hierarchical view of the network.
handles mapping the service into a
uniform format. The optical channel
payload tributary unit (OPTU) maps
the output of the OPVC into a time slot
and performs timing adaptations to
unify the clocking. The optical chan-
nel payload unit (OPU) contains all of
the timeslots in the OTN frame. The
optical channel data unit (ODU) pro-
vides the path-level transport func-
tions of the OPU. The optical transport
unit (OTU) provides the section-level
overhead for the ODU and provides
the GCC bytes. The physical layer
maps the OTU into a wavelength or
WDM system.
As shown in Figure 3, OTN has a hi-
erarchy just like SONET and SDH. An
optical channel (OCh) runs between
anything that maps a service into an
OTU1/OTU2 signal, typically a termi-
nal unit. An optical multiplex section
(OMS) is bounded by two devices that
can multiplex wavelengths onto a fi-
ber, such as a passive filter. An optical
transmission section (OTS) is the fi-
ber between anything that performs
an optical function on the signal, such
as an amplifier.
Backbone of the future
OTN is the common optical back-
bone network of the future. It is ideally
suited to the creation of service-en-
abled transport networks that can
support both existing TDM-based ap-
plications like circuit-switched voice
and best-effort Internet access where
packet latency is not an issue, as well
as rapidly emerging applications such
as VoIP, broadcast video, web-enabled
business services, and networked re-
mote storage. The very existence and
future success of these advanced ser-
vices is dependent on having access to
low-latency, deterministic bandwidth.
Compared to a routed network ar-
chitecture, the service-enabled trans-
port network has far greater ability to
support these delay-sensitive applica-
tions even when network utilization
levels are high so that the network de-
livers consistent performance without
having to constantly tune it. It also has
significant advantages in terms of net-
work security, virtually eliminating
the threat of a network being hacked
because it does not touch the underly-
ing services or applications.
With OTN as its basis, the service-
enabled transport network offers a low
cost, services-centric alternative to net-
work convergence. It supports a wide
variety of new and emerging services
and their stringent performance re-
quirements without sacrificing support
for legacy services. It further extends
SONET/SDH-like OAM and FCAPS
capabilities to data services includ-
ing Ethernet, digital video, and stor-
age protocols. Since OTN allows for
mapping all services into a common
wavelengthor set of wavelengthsit
simplifies everything from monitoring
and deployment to sparing and capac-
ity management. And unlike SONET/
SDH, it is the only transport layer that
carries a full 10GbE LAN PHY, the
standard interfaces of next-generation
IP/Ethernet networks.
Andy McCormick is product marketing
manager at Ciena (www.ciena.com).
OTN is also the only transport layer that
can carry a full 10GbE LAN PHY.
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SONET MSPP
SDH MSPP
SDH MSPP
North America
PoP
Europe
PoP
Asia-Pacic
PoP
Global DWDM
core
OC-192 or
STM-64
10/100 and
GbE
services
10/100 and GbE
services
(EPL, EVPL, E-Line, or E-LAN)
DS3/1
and
OC-n services
E3/1 and
STM-n
services
E3/1 and
STM-n
services
10/100 and
GbE services
L2
Ethernet
switch
L2
Ethernet
switch
L2
Ethernet
switch
Traditional overlay global Ethernet solution
Applications
Today, multinational enterprises
and organizations would like to build
all-Ethernet networks around the
world in order to extend LANs over a
global Ethernet WAN. The corporate
move to all-Ethernet networks mir-
rors carriers desire to migrate to IP-
optimized networks, and IP-friendly
Ethernet has become the ubiquitous
service delivery technology that can
be supported over any transport net-
work. Other global Ethernet applica-
tions include traditional data center
connectivity as well as video broad-
casting, IP voice, and data network
peering.
Deployment challenges
The problem is that while service pro-
viders have accepted Ethernet as the
enabling convergence layer technology,
todays global carrier infrastructure
is a diverse mix of technologies. Ser-
vice providers core, metro edge, and
access networks are each at various
stages in the migration from TDM to
packet. While delivering Ethernet ser-
vices within a local geographical area
may involve just one kind of network,
a global carrier delivering an end-to-
end Ethernet service will more likely
need to traverse a mixture of Ethernet,
IP/MPLS, SONET, SDH, and DWDM
local and long-haul networks.
A wide array of Ethernet service
offerings, including E-Line (point-
to-point) and E-LAN (multipoint) ser-
vices ranging from speeds of 1 Mbit/sec
to 10 Gbits/sec must be provisioned
across these diverse local/terrestrial
transport and undersea networks. In
addition, international carriers must
find ways to provide advanced packet-
based QoS and performance metrics
to support Ethernet SLAs while maxi-
mizing bandwidth efficiency.
These conditions increase complex-
ity and costs for carriers when it comes
to deploying a next-generation Ether-
net service delivery platform. For ex-
ample, to upgrade a global network to
deliver advanced Ethernet services us-
ing traditional service platforms, the
carrier might need to separately de-
ploy several network elements:
Layer 2 Ethernet switches as an over-
lay to aggregate and manage advanced
Ethernet services and to provide spe-
cific bandwidth (CIR) and class-of-
service (CoS) guarantees.
Traditional SONET multiservice
provisioning platforms (MSPPs) in
North American service points of
presence (PoPs) to interconnect the
Multiservice switching platforms enable
global Ethernet services
Figure 1. Using traditional equipment, a global Ethernet overlay network would
require a wide range of platforms, which increases cost and complexity.
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__________________
Multiservice
Carrier
Ethernet
services
Multiservice
Carrier
Ethernet
switch
Multiservice
Carrier
Ethernet
switch
Europe
PoP
North America
PoP
Asia-Pacic
PoP
Global DWDM
core
10GbE,
OC-192,
or STM-64
10/100 and
GbE
services
10/100 and GbE
services
(EPL, EVPL, E-Line, or E-LAN)
DS3/1
and
OC-n services
E3/1 and
STM-n
services
E3/1 and
STM-n
services
10/100 and
GbE services
Unied global Ethernet solution
Applications
long-haul DWDM network with the
local SONET transport infrastruc-
ture, provide Ethernet-over-SONET
transport, and to aggregate and man-
age TDM and OC-n services.
Traditional SDH MSPPs in Euro-
pean, Asia-Pacific, Caribbean/Latin
American, and other service PoPs to
interconnect the long-haul DWDM
network with the local SDH trans-
port infrastructure, provide Eth-
ernet-over-SDH transport, and to
aggregate and manage TDM and
STM-n services.
In addition to being expensive to
purchase and install, this amalgam of
disparate network elements is difficult
and costly to maintain and monitor.
Because most global service provid-
ers have specialized provisioning and
management systems for each type
of network, it also may take weeks
to coordinate the various systems
and teams to provision a service for
just one customer. Furthermore, tra-
ditional MSPPs can be viewed as an
interim step at best because they are
unable to make the transition to a con-
verged, packet-based network.
New requirements
To minimize the costs and complex-
ity associated with upgrading global
networks to deliver advanced Eth-
ernet services, carriers require more
robust and flexible Ethernet service-
delivery platforms with truly global
capabilities.
The following is a list of some key
requirements for a global Ethernet ser-
vice delivery platform today:
Scalable Layer 2 Ethernet ag-
gregation and service switching
(MAC, C-VLAN, S-VLAN/Q-in-
Q) functionality.
High service granularity and capacity,
to allow the carrier to deliver Ether-
net services at any bandwidth level
desired by the customer, ranging
from 1 Mbit/sec up to 10 Gbits/sec
and beyond.
MEF-compliant E-Line (point-to-
point), E-LAN (multipoint), and E-
Tree (point-to-multipoint) Ethernet
services.
Advanced packet-based QoS and per-
formance metrics on packet loss, la-
tency, and jitter to support Ethernet
SLAs.
Diverse optical interconnect op-
tions including SONET OC-n, SDH
STM-n, and DWDM/CWDM wave-
lengths.
Pay as you grow integration of new
technologies/services and bandwidth
capacity.
Figure 2. A unified global Ethernet architecture simplifies the network, lowers
costs, and positions the carrier to take advantage of future technology advances.
Cont. on pg 35
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Source: Verizon Business
Expansive coverage of Internet data centers
Fully meshed transatlantic IP network
Six continents
150+ countries
2,700+ cities
Verizon Business global networks
Applications
Verizon Business is also investing
in its access network, particularly
around Ethernet. In fact, Briggs con-
firms that the carriers investment in
its Converged Packet Access (CPA)
architecturea service-agnostic in-
frastructure used to deliver Ethernet
as well as Frame Relay, ATM, and IP
VPNsis, frankly, just as much of
an investment as ultralong haul. Ve-
rizon Business will expand its CPA ar-
chitecture into 25 countries and more
than 60 additional locations in the US
this year. The carrier also will begin
its rollout of pseudowire technology
by mid-year.
Increasing the capacity and im-
proving the conditions of its under-
sea facilities also has been a priority for
Verizon Business. The carrier is one of
the owners of the Sea-Me-We-4 net-
work, which provides critical capacity
between Western Europe, the Middle
East, and Southeast Asia, says Briggs.
The carrier also is the only U.S. or-
ganization to buy into the Trans-Pa-
cific Express (TPE) network, which
Briggs says is the first next-genera-
tion undersea network to provide a di-
rect link between mainland U.S. and
China. He confirms that Verizon and
its five partners, which include China
Telecom and China Netcom, have an
aggressive rollout schedule; they plan
to have the multiterabit-capacity mesh
network up and running prior to the
2008 Summer Olympics in Beijing.
Last year, Verizon also took steps to
improve the reliability of the transat-
CASE BY CASE
CONT. FROM PAGE 23
lantic portion of its global IP network.
In the past, traffic moved across the
Atlantic over SONET rings, which pro-
vided redundant paths. However, such
architecture only protects against a
single failure in a given ring. A fail-
ure or service interruption on two or
more segments of the same network
required the deployment of a cable
shipthe nautical equivalent of the
truck rollto restore service. Today,
Verizon Business operates a mesh
network, using Ciena CoreDirectors
(www.ciena.com), to move traffic be-
tween six diverse paths that can be
routed onto other undersea networks
in the event of a network failure.
When asked why Verizon Business
has invested so heavily in undersea
networksthe carrier has owner-
ship in 18 undersea cable systems in
the Asia-Pacific region aloneBriggs
points to the 7.1 magnitude earth-
quake that struck the coast of Taiwan
back in December 2006.
Eight cables were cut in 22 places,
he recalls. It was probably the largest
single [communications] disaster we
have seen in that region. And while
he admits that the public network was
more heavily congested as a result, the
network itself never went down, nor
did the carriers private IP network.
He credits the mesh configuration for
the added resiliency.
When the capacity across the Pa-
cific was lost, we were able to restore
the traffic into Sea-Me-We-4 across
the Atlantic mesh in some cases in
a matter of milliseconds, Briggs re-
ports. In fact, while other carriers
were still trying to recover, in a mat-
ter of two days we were actually pro-
visioning new services into the region
via the Atlantic mesh for customers
that couldnt get capacity from other
carriers. Briggs believes the TPE
will only strength en Verizons net-
work resiliency.
On the doorstep of 100G
When asked about the industry buzz
surrounding 100-Gigabit Ethernet
(100GbE), Briggs admits he feels per-
sonally responsible for part of it. With
the demand were seeing as a result
of video, very high-speed Internet
of 30 Mbits/sec going to 100 Mbits/
sec, HDTV, streaming video through
wireless, as well as the data associated
with wireless, I have felt for some time
now that 40 Gbits simply isnt going to
be enough, he says.
While Briggs says hed prefer to see
the industry standardize around 160
Gbits/sec, he admits that such an im-
plementation may be too much of a
leap. For now, he isnt as concerned
with what 100G will look likee.g.,
will it be serial or parallel, will it be
based on an IEEE proposal or an ITU
proposal, etc.as much as he is con-
cerned with what he perceives as skep-
ticism in the industry. I can accept
some flexibility in terms of what is
provided, he maintains, but we just
need to move them into 100 Gbits. I
think many people thought that 100G
was something many, many years out,
he says. And the point Ive tried to
make is that, given the demands were
seeing, its not years and years out. Its
on our doorstep.
However, in the past month or so,
Briggs says hes seen a change in mind-
set of his traditional suppliers. And the
vendor community is now talking
about delivering the technology in a
timeframe more aligned with Veri-
zons needs.
Very candidly, some of the feedback
were getting from the industry is that
it could be ready for trials as early as
2008, certainly by 2009, says Briggs.
And if it is available in 2008, we will
trial it. Well be ready for it.
Briggs confirms that growth in the
backbone will dictate rolling out 100-
GbE at least in the US in that time-
frame, and then into Europe as well.
Customer service upgrades
Verizon Business also has revealed a
number of customer service initiatives
that tie into the network upgrades it
has undertaken and will continue to
undertake. According to Briggs, there
are three attributes that define qual-
ity customer service. The first, he
says, is 100% availability, which Ve-
rizon Business believes it will attain
with its ULH network and undersea
activities. The second attribute is flow-
through provisioning, which would
enable customers to provision new
circuits and/or additional bandwidth
in real time.
Briggs reports that by the end of the
year, 25% of the carriers orders will
be completed via flow-through provi-
sioning. That will be another signifi-
cant change in the industry, he asserts.
For a quarter of orders, it will be es-
sentially no-touch. Verizon Business
will initially offer flow-through pro-
visioning on its CPA architecture, but
plans to expand the capability to other
services in the future.
What we are doing is starting with
that architecture and doing the flow-
through provisioning on those boxes,
so almost starting with a greenfield,
he says. Its using the Converged
Packet Access architecture with the
new systems that are being developed
today to flow those orders through.
Thats how you get the automation,
and thats why were confident we can
get to 25% by the end of the year.
Finally, Briggs says the company as
a whole is trying to change its mind-
set when it comes to timeliness of ser-
vice delivery. Traditionally, the carrier
has measured itself against the service
turn-up date it gives customers, which
may or may not fall within the cus-
tomers desired timeline. For this rea-
son, Verizon is changing its metrics to
measure success only against the ser-
vice turn-up date set by the customer,
even if that timeline is less than the
carriers standard delivery interval.
Part of the reason why we think we
can start to meet [those metrics] is
because of this automation that were
putting in place, Briggs notes.
Furthermore, the carrier also is re-
evaluating its mean-time-to-repair
standards and has vowed to reduce its
average repair time by 30 minutes to
3.2 hours per outage. Briggs believes
this goal is achievable in part because
the company is prioritizing what he
calls electronic bonding with cus-
tomers. Verizon hopes to get customers
more accustomed to reporting outages
and provisioning orders electronically
rather than via a phone call.

Verizon Business says its data network now includes more than 446,000
route-miles, including terrestrial and undersea cable spanning six continents,
and access to another 187,000 route-miles from Verizon Telecom.
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Industry
Oppor tuni ti es, market i ntel l i gence,
and forecast s to i mprove your bot tom l i ne
ANALYST CORNER
Cont. on pg 32
Cont. on pg 33
Cont. on pg 34
manageable 220 m.
Nevertheless, several IC vendorspartic-
ularly startupsjumped into the market in
hopes of meeting the EDC requirement. Ven-
dors such as Aeluros (www.aeluros.com), Big
Bear Networks (parts of which were acquired
subsequently by Vitesse Semiconductor, In-
finera, and Finisar), ClariPhy Communica-
tions (www.clariphy.com), Phyworks (www.
phyworks-ic.com), Intersymbol Communica-
tions (acquired by Kodeos, which applied its
technology to telco applications), Quake Tech-
nologies (eventually purchased by AMCC),
Santel (now defunct), and Scintera Networks
(www.scintera.com) had their names con-
nected with EDC for LRM at one time or an-
other. They competed with in-house efforts
from such transceiver vendors as Intel (www.
intel.com) and Avago Technologies (www.
avagotech.com), as well as the difficulty of meet-
ing the dispersion challenge on the one hand
and the cost and power limitations transceiver
multisource agreements (MSAs) and their po-
tential customers imposed on the other.
Add to these challenges the lack of test equip-
ment capable of determining whether devices
were specification compliant (a problem only
recently solved by Circadiant, www.circadi-
ant.com, with competition now coming from
Synthesys Research, www.bertscope.com) and
the advent of the SFP+, which limited the op-
portunity for XFP business and gave them an-
other MSA to worry about. It is little wonder
that some EDC vendors complained about hit-
ting a moving target. The supplier market frag-
mented somewhat, with some vendors (such
as Scintera) offering a pure EDC device, oth-
ers (such as Phyworks and
At last years Executive Forum, presented by
Lightwave and the Optical Society of Amer-
ica (OSA) and held each year in conjunction
with the OFC/NFOEC Conference, Philippe
Morin, vice president and general manager of
Nortels Optical Networks Division, caused a
stir when he declared, The mourning period
for optical is officially over. If this years event
was any indication, the mourning period is of-
ficially over, but that does not mean a return
to the heady days of 19992001. According to
some industry insiders, the operating recov-
ery is far from complete. Pricing remains com-
petitive; gross margins are tight; the venture
capital market is growing everywhere but in
the US, it seems; and questions linger about
how to fund R&D under these conditions. And
the subject of consolidationor lack thereof
may have come up once or twice as well.
Giorgio Anania, former president and chief
executive officer of Bookham (www.bookham.
com), perhaps best summed up the current
state of the industry when he said, The race
for bandwidth is officially on. And the high-
bandwidth application everyone has their eyes
on is video.
In his keynote address, Ryan Limaye,
managing director and head of telecom in-
vestment banking at Goldman, Sachs, & Co.
(www.goldmansachs.com), noted, The in-
dustry is as healthy as it has felt since 2000,
and the video build-out is really driving this.
Furthermore, he said, investment now is oc-
curring in a much healthier manner, with
demand preceding deployment. Capital ex-
penditures have returned to a level more con-
sistent with the historical average of 16% of
revenues, he said, which is good news for the
industry. However, he admitted, We need
video to work and make sense.
The changing fortunes of the panelists from
last years Executive Forum also were cited as
a positive indicator. Last year, nearly all of
the panelists were losing money; today, the
majority are profitable, thanks to both cost
cutting and increasing rev-
By Meghan Fuller
OFC/NFOEC 2007:
Recovery underway,
but incomplete
iSuppli sees promise
for optical in wireline
capex forecast
By Stephen Hardy
In announcing its latest global wireline capex forecast, mar-
ket research and analysis firm iSuppli Corp. (www.isuppli.
com) told equipment vendors that it had good news and
bad news. The good news is that the company expects car-
riers around the world collectively will spend nearly $41
billion on wireline equipment in 2007, which iSuppli said
will mark a recent record high year for telecommunications
company spending on such gear. The bad news is that fig-
ure represents merely a 1.6% increase from 2006. A look
inside the numbers shows that even the bad news isnt
much of a downer for optical communications technology,
however. According to Steve Rago, principal analyst, IPTV,
broadband, and digital home research, at iSuppli, carriers
plan to take a focused approach to capex for the rest of the
decadeand much of that focus should benefit suppliers of
optical communications equipment.
Managed IPTV delivery represents the current focus, ac-
cording to Rago. That means increasing the amount of band-
width access networks can accommodate. To achieve this
goal, carriers will spend more money in the access this year
than in any of the other network areas (i.e., metro, long haul,
and central office switching) that iSuppli tracks.
Fiber-optic technology represents a growingalthough
still comparatively smallpart of the access toolkit. Rago
expects optical communications spending will account
for between 6% and 7% of the $14 billion in capex pre-
dicted to go toward access networks worldwide this year.
While FTTP has raised its profile over the past two years,
Rago explains that most of the optical spending will go
toward the backhaul of DSLAMs, as xDSL remains the
technology of choice when it comes to delivering broad-
band services. Most of these backhaul links will top out
at 1 Gbit/sec.
That doesnt mean that Rago, who was at work on an ac-
cess network report at the time of
this interview, doesnt see FTTP as a
growing market. For example, point-
to-point Active Ethernet net-
works also will receive significant
attention this year, both in Europe
and from municipalities in several
spots around the world. Rago sees
multiple FTTP trends emerging go-
ing forward.
Over time, I think its going to be
PON for the Tier 1 companies, which
will significantly
Stephen Hardy
is the editorial director
and associate pub-
lisher of Lightwave.
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___________
_________
_____
____
____
_________
Industry
enues. JDSU saw a 45% increase in rev-
enue from 2005 to 2006, for example.
Avanex watched its revenue increase
20%, and Finisar recorded a 25.9% rev-
enue increase. Moreover, carriers now
are launching new platforms that take
advantage of new component technol-
ogies such as pluggable optics.
But not everyone is ready to pro-
claim the recovery complete. Andrew
Schmitt, general partner at Nyquist
Capital USA (www.nyquistcapital.
com), offered a more sobering view of
the industry in his presentation during
OFC/NFOECs Market Watch Panel,
A Wall Street Perspective, held later
in the week. Revenue growth does
not necessarily mean success, he said,
adding that we have entered an era of
profitless prosperity.
In his discussion about value cre-
ation and monetization in the optical
module space, Schmitt stressed the
need for further consolidation and
the removal of fixed costs. He also
reported that in several markets, the
industry was leaning toward a mon-
opsony. In a monopsony, market con-
ditions are dictated by a single source,
i.e., when the products of several sell-
ers are sought by a single buyer. It is
a highly inefficient market situation
that destroys the competitive land-
scape, he explained. The monopsonist
in the optical module space, Schmitt
argued, is Cisco Systems, which pur-
chases seven out of every 10 optical
modules for Ethernet applications.
Moreover, the company employs secu-
rity measures that force customers to
deploy only Cisco moduleswhich it
resells at 90% gross margin with negli-
gible value addrather than standard
MSA modules, Schmitt asserted.
The end result? Cisco recorded $1.2
billion in module revenue in 2006,
which is equal to the 2006 revenue of
JDSU, Bookham, Avanex, and Finisar
combined. In short, said Schmitt, con-
solidation is necessary and will help
keep Cisco honest.
Consolidation, consolidation,
consolidation
Indeed, consolidation was an oft-heard
buzzword in panel sessions and on the
exhibit floor, with most people won-
dering the same thing: When?
Consolidation occurred among the
service providers in late 2005/early
2006, and it occurred last year among
some of the larger system vendors,
most notably the mergers of Alcatel
and Lucent and Nokia and Siemens, as
well as Ericssons acquisition of Mar-
coni. During his keynote address to
the Executive Forum, Limaye reported
that consolidation in the service pro-
vider space has resulted in savings of
$10 billion dollars, thanks to the re-
moval of 2% to 4% of combined spend-
ing overlap. It is, he said, the classic
case of subtraction by addition: The
merger between Alcatel and Lucent
netted $1.9 billion in annual savings,
while the merger of Nokia and Sie-
mens is expected to net $2 billion in
annual savings. While this may be bad
news for the vendor community, the
overall health of the service provider
community has improved as a result.
Limaye believes this consolidation
will continue in the system vendor
space, as the smaller service provider
community will support fewer sup-
pliers than previously. He expects the
current 15 to 20 suppliers to be whit-
tled down to less than five.
Meanwhile, consolidation contin-
ues to put pressure on component
vendors. Pricing remains unstable
and margins tight, noted Anania.
However, markets in which there are
only a couple of suppliers (e.g., pumps
and amplifiers) are financially sta-
ble and suppliers profitable. In more
competitive markets, by contrast, sup-
pliers have seen stupid price reduc-
tions, he said.
Avanex (www.avanex.com) chief ex-
ecutive officer Jo Major agreed, not-
ing that component vendors would
do well to invest in segments where
there are only two or three players.
In such markets, vendors can attain
gross margins in the 60% range. But
where there are 10 to 15 players, gross
margins are around 10% to 15%. Like
many others, he argued in favor of fur-
ther industry consolidation.
Since the bubble, consolidation in
the component space has occurred
on an opportunistic basis, typically
an example of the big acquiring the
little. But what we really need, said
Schmitt, is the big guys (an Avanex
and a Bookham, for example) to
merge with each other. Such consoli-
dation would restore vendor pricing
power and eliminate selling, general,
and administrative (SG&A) expenses.
Schmitt also argued in favor of con-
solidation because it would eliminate
duplicative R&D.
And therein lay another key topic
at this years event: Given such com-
petitive pricing and tight margins,
where will component vendors find
the money to invest in the requisite
R&D to take the industry from 10G
to 40G to 100G and beyond? Carriers
and system vendors alike demand ever
lower prices but an increasingly higher
level of innovation and integration.
Jerry Rawls, chairman of the board,
president, and chief executive officer
of Finisar Corp. (www.finisar.com),
admitted that given current margin
levels, it is impossible to deliver the
level of R&D expected by our custom-
ers. The challenge, he said, is to de-
termine which opportunities fit each
company best, for no company can
pursue them all. If possible, compa-
nies should fill holes with strategic
partnerships or acquisitions, he said,
citing Finisars recent acquisitions of
Kodeos Communications and AZNA
LLC, both of which bring considerable
R&D assets to the company.
Fariba Danesh, vice president
and general manager of the fiber-
optics division at Avago Technologies
(www.avagotech.com), argued for
further standardization to help focus
R&D. The optical communications
industry is nowhere near the level of
standardization that other industries
enjoy, she said. And although she be-
lieves volume is consolidating around
X2 and XFP, Danesh noted that there
are still four or five form factors ship-
ping in volume for 10-Gbit/sec appli-
OFC/NFOEC 2007: Recovery underway, but incomplete
cations, and the R&D dollars are split
among them.
VCs vs. PIPES
When asked why consolidation has
not occurred in the component space,
John Dexheimer, partner with First
Analysis Private Equity (www.first
analysis.com), noted that there is still
money in the system, be it extra liquid-
ity from the optical boom or vendors
restructuring and/or successfully
completing series E, F, and G rounds.
Dexheimer also cited the increas-
ing popularity of Private Investment
in Public Entity Securities, or PIPES,
as another reason why the big com-
panies have not consolidated. Rela-
tively easy and inexpensive to obtain,
PIPES can guarantee as much as 10%
to 15% in annual return, he reported.
In fact, Dexheimer claims that there
is currently more money in the PIPES
market ($27 billion) than the VC mar-
ket ($25 billion).
On the subject of VC investment in
telecom, Dexheimer confirmed that
it is not coming back any time soon.
Communications today represents just
over 10% of VC money invested ver-
sus 25% in 2000, he said. Whats more,
Dexheimer estimated that 90% of ini-
tial public offers (IPOs) are now tak-
ing place outside the US, where the VC
market is growing dramatically.
Dexheimer cited three recent IPOs
of note that occurred outside the US,
including Arasor (www.arasor.net),
Ignis Photonyx (www.ignis.com),
and Enablence Technologies (www.
enablence.com). Arasor, an optical
equipment manufacturer based in
Mountain View, CA, debuted on the
Australian stock exchange in Octo-
ber. Along with Italian partner Pire-
lli Broadband Solutions, Arasor sells
optical equipment to Huawei Technol-
ogies in China. Ignis Photonyx, subsid-
iary of Ignis ASA, conducted its IPO in
Norway. The company has additional
operations in Denmark, Canada, and
South Korea and has emerged as a key
supplier of optical splitters and other
components to Koreas FTTH market.
And Enablence went public in Ottawa
(via a reverse takeover), sells diplexer
transceivers into the Japanese market,
and recently purchased a high-speed
optical component manufacturer in
Switzerland, Albis Optoelectronics
AG. According to Dexheimer, such
globalization would have been hard
to imagine six years ago.
Markets in which
there are only a
couple of suppliers
(e.g., pumps and
amplifiers) are
financially stable
and suppliers
profitable.
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Industry
Vitesse) offering combined EDC/CDR
chips, and a third group (such as Ae-
luros and, after abandoning work on
an EDC/CDR combination, AMCC/
Quake) focusing on ICs that would
combine EDC, CDR, and PHY capa-
bilities and reside on the line card
just what SFP+ would require.
The uncertainty among the EDC
community clearly affected the deliv-
ery of LRM-compliant transceivers.
Its customary that transceiver ven-
dors will announce module availabil-
ity before specifications reach final
standardization; although the LRM
PMD finally reached closure last fall,
compliant X2 transceivers only made
their debut during Marchs OFC/
NFOEC conference and exhibition.
Vitesse (www.vitesse.com) crushed its
competition in terms of design wins,
announcing placement with five of
the top six module vendors; accord-
ing to at least one transceiver source
at OFC/NFOEC, Vitesses chip was the
only offering with sufficient margin to
inspire confidence that it would work
across the variety of legacy environ-
ments it was likely to face.
However, Vitesse wont have a
chance to rest on its laurels. SFP+
transceivers have already appeared,
which means increasing pressure for
EDC capabilities for LRM applica-
tions of these modules. The competi-
tion also looks forward to a new round
of X2 designs intended to reduce costs
and improve performance.
Plus for SFP+
As noted previously (see SFP+ Trans-
ceivers Emerge as Key 10GbE Trend,
Lightwave, December 2006, page 23),
the SFP+ form factor has been posi-
tioned for many of the same applica-
tions as the XFP, particularly in the
datacom space. The device, specifica-
tions for which have not reached com-
pletion, aims to save cost, space, and
power consumption versus the XFP,
largely by moving some of the func-
tions contained within the XFP mod-
ule onto the line cardincluding, in the
case of LRM applications, the EDC.
For initial applications, the EDC
likely will be combined with XAUI
PHY and other functions. As already
noted, both Aeluros and AMCC have
positioned themselves with such de-
vices. Aeluros initially offers a pair
of single-channel devices, the SFI/
XFI Puma AEL 2003 CDR/EDC and
Puma AEL 2005 for XAUI/SFI LAN
PHY/SerDes with EDC. Dual-chan-
nel examples of both devices should
sample later this year.
The company does have design
wins for the AEL2005, according to
Siddharth Seth, director of market-
ing at Aeluros. Seth reports that while
the SFP+ will reduce XFP datacom
opportunities, it wont remove them
completely. He says system houses that
have adopted XFP for their platforms
will need to talk with LRM-enabled X2
modules, thus cre-
SFP+ transceivers
have already
appeared, which
means increasing
pressure for EDC
capabilities for
LRM applications
of these modules.
Cont. on pg 34
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ANALYST CORNER
CONT. FROM PAGE 31
ating at least a small market for LRM
modules in the XFP form factor.
AMCC, meanwhile, offers the
QT1215, which integrates program-
mable mixed-signal EDC within an
XFI-to-SFI bridge chip. The dual-port
device has been sampling since Jan-
uary; the company expects to make
the chip generally available this July.
Meanwhile, the QT2035S, an SFI-to-
XAUI PHY with EDC, also was on dis-
play at OFC/NFOEC.
Other companies also plan to make
a play within this application space.
Vitesse, of course, will not be content
with its
X2 win-
nings.
The company announced an SFP+
evaluation platform using its current
VSC8238 EDC device, and asserted a
new generation of chip with integrated
PHY is on the way.
ClariPhy will offer an all-digi-
tal CMOS device that comprises a
10-gigasample/sec analog-to-digi-
tal converter (ADC) and a maxi-
mum likelihood sequence detection
(MLSD) EDC engine. Although
MLSD-type algorithms are very
popular for EDC in the telco space,
ClariPhy appears to be alone when it
comes to offering this approach for
LRM applications.
While ClariPhy touts its digital ap-
proach, Phyworks counters that the
analog signal chain holds the key to
LRM performance. Stephen King,
Phyworks chief executive officer, Paul
Denny, vice president, product devel-
opment, and Brad Weaterton, direc-
tor of marketing, concede that their
EDC/CDR device didnt meet their
performance expectations for the
original X2 round of designs. The
company has refocused its efforts on
a new generation of technology (like
Vitesse, the company also makes tran-
simpedance amplifiers for LRM ap-
plications as well) that it hopes to
sample this summer.
Interestingly, Phyworks doesnt
plan to integrate PHY functions into
its new device. Like others, the com-
pany expects the PHY function to be
integrated into other devices, such as
MACs, with serial interfaces becom-
ing the norm. The expectation points
up the fact that exactly what the SFP+
will demand remains uncertain. The
onboard application offers a different
set of challenges for EDC, in that it
must combat any distortion created
by the FR4 traces on the board as well
as whatever dispersion the signal en-
countered reaching the transceiver.
The amount of trace obviously has
an effect on the dispersion and other
noise the EDC will have to clean up.
The specifications for EDC will come
from the module working group,
rather than the standards body that
developed the LRM PMDalthough
clearly the specification makers wont
stray far from the general parameters
set by the IEEE.
Ready for Round 2
The target is much clearer for the
anticipated round of cost reduction
designs for X2. Chip vendors expect
this round to get underway during
the second half of this year, which
gives them a few months to try to
match the performance bar Vitesse
has set. Naturally, the vendors con-
tacted for this article expect success,
including Scintera Networks. While
the company declined to provide
details on the record, Scintera did
show new CMOS-based technology
at its booth during OFC/NFOEC. A
new product should be announced
soon.
Is all this effort worth it? Clearly,
these IC vendors believe so. Mitch
Kahn, AMCCs vice president of
marketing for transport products,
reports good business for X2 and
XENPAK applications over the next
two or three years, with perhaps as
many as 10,000 LRM ports needed
over the next 18 months. The SFP+
numbers remain undetermined, of
course, but should provide a signifi-
cant opportunity. Whether it proves
enough to keep all of these companies
in the game appears unlikelypar-
ticularly if one vendor wraps up the
market again.
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.
The SFP+ changes the game for EDC vendors.
Instead of being integrated within the transceiver,
the EDC function must reside somewhere on the
line card.
increase optics in the access, he says.
And then the municipalities and Tier
2 or 3s may very well go to point-to-
point. Its a little bit more expensive,
but they dont have the same kind of
densities that the Tier 1s have.
Rago also likes the future potential
of WDM-PON, adding, That sounds
very appealing to me over time.
He also believes that the outlook
for Europe should prove brighter
than many observersparticularly
those within Europehave pre-
dicted. I thought Europe would be
behind everybody in PON, Rago
offers. Now I see that situation is
changing. And its not just PON; Ac-
tive Ethernet and fiber in the access
we see that changing. My guess now
is that Europe will be more aggres-
sive over time than the US also. So
youll see Asia probably number one,
Europe number two for a while, and
the US sitting in the third position
in fiber to the access.
Optical technology will get a larger
share of the budget in the metro and
long-haul parts of the network. The
metro market, which had led global
carrier spending for the last several
years, will benefit from a $12 bil-
lion investment. Approximately 24%
or 25% of this figure will go toward
optical communications equipment,
Rago believes; most of the money
will go toward CWDM and DWDM
systems, optical add/drop multiplex-
ers, and whats left of SONET, he
says. Reconfigurable optical add/drop
multiplexers (ROADMs) also will re-
ceive interest. Over time we see that
growing significantly, Rago adds of
ROADM investment.
DWDM systems will dominate op-
tical communications spending in the
long-haul market. The overall fiber-
optic portion will come to approxi-
mately 42% of the $9 billion spent
globally on the long-haul segment,
with large routers consuming much
of the remainder.
The view ahead
Taken together, Rago expects carriers
around the globe will spend approxi-
mately $8 billion on optical commu-
nications equipment in 2007. This
represents an increase of 19% over
the $6.7 billion spent in 2006which
means fiber-optic equipment spend-
ing will grow 10 more than the over-
all capex expansion.
Maintaining a larger share of the
overall budget will prove essential
for the continued health of the opti-
cal communications industry, as Rago
expects 2007 will represent the capex
peak for the 20042011 forecast pe-
riod. Capex should decline slightly
through 2011, when iSuppli expects
carriers will spend $39.6 billion.
Fortunately for companies in the fi-
ber-optic space, Rago sees the develop-
ment of IPTV services as benefiting
optical communications as bandwidth
bottlenecks ripple through the net-
work. Theres going to be an expo-
nential bandwidth increase in the core
and the metro portion of the network
because of the growth of the video-
on-demand scenario, especially in
personalized video watching. This is
going to create a huge amount of traf-
fic over timemuch higher growth
than weve seen up till now, Rago says.
And the way thats going to be solved
is via DWDM and other new optical
[technology].
Specifically, Rago foresees WDM
technology used to feed the access
network, and backhaul links jump-
ing from 1 Gbit/sec to 10 Gbits/sec,
as well as the addition of more FTTP
infrastructure. The goal will be to
bring speeds of 50 Mbits/sec and
greater to the home. I think youre
going to see the access first, and put-
ting in the backbone, if you will, to
handle IPTV, he explains. As [car-
riers] get that done and the take
rates start going up, then theyre go-
ing to shift their spending towards
the metro and the long haul because
traffic will start increasing.
Some of this metro and long-haul
spending increase will take place
this year and next (iSuppli expects
long-haul spending to increase by
$1 billion both this year and next,
for example), but Rago doesnt ex-
pect the upgrade push to begin in
earnest until 2010 or 2011.
While some may see the essentially
flat forecasts going forward as disap-
pointing, Rago does not. Weve had,
over the last several years now, some
good ratchets upward in capex spend-
ing, to the point where I think 2007
or 2008 is going to be the highest its
been in a very long time, he con-
cludes. And to hold it there is very
importantthats a lot of money be-
ing spent.
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Industry
people
Jane Li has been appointed to the
position of executive vice president
and general manager of lightwave
business at Eudyna Devices USA, a
fiber-optic com-
ponents and
modules company.
Prior to this pro-
motion, Li was se-
nior vice president
of marketing and
sales. She has
been with the company since it was
established in 2004. In her new role,
Li will be responsible for managing
all aspects of the lightwave business
including sales, marketing, business
development, product road-mapping,
operations, customer service, and
quality support.
Fluke Networks, provider of Network
SuperVision products for the testing,
monitoring, and analysis of enter-
prise and telecommunications net-
works, has named Paul Caragher
president of the company. Caragher
comes to Fluke
Networks from
his role as busi-
ness unit director
at Hach Lange,
a manufacturer
and distributor of
analytical instru-
ments used to test water quality. At
Hach Lange, Caragher led the strat-
egy development for the companys
entrance into the industrial market
and managed the process instrumen-
tation business, driving double-digit
growth in both segments. Fluke Net-
works and Hach Lange are part of
the Danaher family of companies.
The IEEE has named David Payne
as the recipient of its 2007 Photon-
ics Award. Sponsored by the IEEE
Lasers and Electro-Optics Society,
the award recognizes outstanding
achievements in photonics. It was
presented to Payne at the recent
OFC/NFOEC 2007 in Anaheim, CA.
Payne is director of the Optoelectron-
ics Research Centre at the University
of Southampton in Highfield, South-
ampton, UK. Payne is said to have
recognized the potential of optical
fiber communication and pioneered
the development of several key re-
lated technologies. His achievements
include fiber design, optical ampli-
fiers, specialty fibers, and high-power
lasers and amplifiers. He made early
contributions to fiber manufacturing
and doping materials, was the first
to use phosphorus as a core dopant,
invented and developed fibers with
unique birefringence properties, and
created the erbium-doped fiber ampli-
fier that revolutionized optical fiber
communications.
The Ethernet Alliance has elected Val
Oliva, director of product manage-
ment for Foundry Networks Enter-
prise Business Unit, as a member
of the board directors and an officer,
serving as secretary for the orga-
nization. In addition to governance
responsibilities in the Ethernet Alli-
ance, Oliva chairs the POE/POE Plus
Committee and the Ethernet Alliance
University Program (EAUP). The Al-
liance has also reappointed Tehuti
Networks vice president of market-
ing and sales Blaine Kohl as the
vice president of marketing for the
industry organization.
Richard Christou, executive chair-
man of U.K.-based Fujitsu Services,
will also become corporate senior
vice president of Fujitsu Limited and
head of Europe, Middle East and
Africa (EMEA) operations for the Fu-
jitsu Group. Christou will concurrently
serve as chairman and chief execu-
tive of U.K.-based Fujitsu EMEA PLC,
a new company that was expected to
be established in April and located
at the London offices of Fujitsu Ser-
vices. In his capacity as corporate se-
nior vice president, Christou will join
in meetings of the Fujitsu Limited
Management Council, an executive
body that considers fundamental poli-
cies and strategy regarding business
management of the Fujitsu Group
and makes decisions on matters
regarding operational execution. As
head of EMEA operations, Christou
will be charged with overall respon-
sibility for Fujitsu Group information
and communications technology
services and products businesses in
the region.
Optimum Lightpath, the next-genera-
tion business broadband service
provider of Cablevision Systems Cor-
poration, has added Troy H. Glick
and David O. Strauss to its execu-
tive management team. Glick will
serve as vice president of product
development and Strauss will be
vice president of marketing. Glick
joins Optimum Lightpath with 17
years of experience in broadband
and telecommunications, including
cofounding and managing Broadband
Assurance, a firm focused on broad-
band solutions for branch office and
teleworkers. Prior to joining Optimum
Lightpath, Strauss was worldwide
program director of partner marketing
for IBMs Systems and Technology
Group. In their new roles, Glick and
Strauss will be responsible for the
strategic development and marketing
of the companys innovative business
telecommunications services.
Jim Kristof has joined QoVox, a
wholly owned subsidiary of Datameg
Corp., as vice president of engi-
neering. Kristof has 27 years of
experience in systems and software
development, specializing in data
communications, telecommunica-
tions, security, and network manage-
ment systems. He previously served
as senior director of software
development for the network and
information security company Hifn
Inc., where he led the development
of flow-through security for VoIP pro-
tocols. He is also an experienced
entrepreneur, having cofounded
several companies: Orologic (pur-
chased by Vitesse) and NetOctave
(purchased by Hifn Inc. and Cyber-
Guard Corp.).
TDM aggregation and service switch-
ing (STS-1/3, VC-3/4, VT1.5/VC-12)
functionality.
Integrated next-generation SONET
and SDH MSPP functionality, in-
cluding support for GFP, VCAT,
and LCAS.
Intelligent generalized multiprotocol
label switching (GMPLS)-based con-
trol plane to simplify end-to-end Eth-
ernet provisioning and monitoring.
Recognizing that Carrier Ethernet
is a relatively young technology, an-
other requirement for a global Eth-
ernet service delivery platform is a
roadmap that supports evolving Eth-
ernet-related technologies such as
IEEE 802.1ah (Provider Backbone
Bridging/Transport), Ethernet net-
work-to-network interfaces (NNIs),
pseudowire emulation (PWE), and
others as they emerge.
As global carriers move to next-
generation Ethernet service-delivery
platforms and enter new markets for
enterprise and wholesale services, they
will need multiservice Carrier Eth-
ernet products that unify advanced
switching and transport capabilities
in a single system. Such a platform
provides significant advantages over
the combination of Layer 2 Ethernet
switches with traditional SONET and
SDH MSPPs.
Unified benefits
By deploying multiservice Carrier Eth-
ernet switching platforms, carriers can
simplify their networks, increase the
range and scalability of their Ether-
net service offerings, and smooth the
transition to an all-packet network. In-
tegrating any mix of advanced Ether-
net/IP and TDM services in a single
platform with global optical intercon-
nect/transport flexibility simplifies
the network and dramatically reduces
costs by eliminating the need for sepa-
rate Ethernet switches and SONET and
SDH MSPPs. It increases the scalability
of Ethernet services by delivering band-
width in ranges from 1 Mbit/sec up to
10 Gbits/sec. Further, a multiservice
Carrier Ethernet switching platforms
support for GMPLS and (in the future)
IEEE 802.1ah, Ethernet NNIs, and
PWE creates a futureproof approach
that enables the transition to all-packet
networks on a global scale.

Kevin Wade is director of prod-
uct marketing at Turin Networks (www.
turinnetworks.com). He can be reached at
Kwade@TurinNetworks.com.
Multiservice switching platforms enable global Ethernet services
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S.I. Tech manufactures fiber optic communication devices for Local Area
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Buy/Sell
TruePulse buys & sells Nortel Optera.
We stock the hard to find wavelengths.
Looking to buy LH1600, Metro 3500, 5200,
MOR+ modules. Will consider new, used
pulls, refurbished, reconditioned or spares.
Can pay cash, trade or sell on consignment.
Currently want to buy: NTCA01, NTCA04,
NTCA06, NTCA07, NTCA30, NTCA90, NTCF,
NTWR, NTN433, NTN435, NTN440,
NTN441, NT0H03
TRUEPULSE INC.
45 White Pine Trail, Richmond Hill, ON
L4E 3L8 Canada
Tel: 905-770-7571
Email: sales@truepulse.com
Web: www.truepulse.com
Lightel Technologies Inc.
1034 Central Ave. S.
Kent, WA 98032
PH: 253-813-2862
Fax: 253-813-2861
Email: sales@lighteltech.com
Web: www.lighteltech.com
Lightel offers custom design and
manufacturing of ber optic components
and equipment. From splitters to WDMs,
CWDMs, DWDMs, PM couplers, and
EDFAs, our products are designed for
performance and reliability. Equipment
products include the Connector
Inspector video microscope, and FBT
Coupler workstations.
SHINEWAY TECHNOLOGIES, INC.
Suite A828 Office Building,
No.14 Huayuan North Rd.,
Haidian District, Beijing, 100083, P.R.China
PH: +86-10-8202 5442
FX: +86-10-6238 6994
Email: support@shinewaytech.com
Web: www.shinewaytech.com
With its unique handheld design,
ShinewayTech provide a full range of optical
T&M instruments. Meanwhile, ShinewayTech
is professional to tailor specific products
to meet the customers marketing/
re-branding objective. Main products include:
palmOTDR, FiberCute, Laser Sources,
Visible Laser Pen, Power Meters, Return Loss
Tester, Optical Loss Testers, Talk Sets, and
Fibre Identifier.
Vitex Technologies
616 East Palisade Avenue
Englewood Cliffs, NJ 07632
PH: 201-871-1881
Web: www.vitextech.com
Vitex offers high quality fiber optic
component and modules for customers who
look for economical pricing and first-class
customer service. Our popular products
include: (1) Diplexer, Triplexer and Transceiver
for GPON and EPON applications. (2) SFP,
SFF, and Full-form transceivers for data
applications. (3) Laser Diode and Receiver
for both digital and analog applications.
(4) Fiber-based DVI/HDMI cables
and extenders.
Applied Optoelectronics Inc. .......................................................................................................... 27
Cannon Instrument Company ......................................................................................................... 11
Centellax ........................................................................................................................................... 19
Corning Cable Systems LLC .............................................................................................................C2
Digital Lightwave Inc. ...................................................................................................................... 15
Discovery Semiconductors, Inc. ....................................................................................................... 3
Emerson Power Network ............................................................................................................... 30
EXFO ................................................................................................................................................ 12
Fiber Instrument Sales ...................................................................................................................... 8
Fiber Optic Center Inc. ....................................................................................................................C4
iTerra ................................................................................................................................................ 22
JDSU .................................................................................................................................................C3
Lightel .............................................................................................................................................. 37
Micrel Semiconductor ....................................................................................................................... 7
O-Net Communications (Shenzhen) Ltd. ....................................................................................... 29
Optical Cable Corp. ........................................................................................................................... 4
Opticomm Corporation ................................................................................................................... 33
Shanghai Grandway Telecom Tech. Co., Ltd. ................................................................................. 36
Shineway Technologies (China),Inc. ............................................................................................... 37
SI TECH ............................................................................................................................................. 36
System Concept Inc. ....................................................................................................................... 36
Tecadia ............................................................................................................................................. 26
Tech Recovery ................................................................................................................................. 37
Thorlabs Inc. .................................................................................................................................... 25
TruePulse Inc. .................................................................................................................................. 37
Vitex ................................................................................................................................................. 37
Wuhan Telecommunication Device Co., Ltd. ................................................................................... 9
advertisers index
To advertise in LIGHTWAVE Communications Directory please contact
KATHLEEN SKELTON at 603.891.9203 or kathleens@pennwell.com
19 Uxbridge Road,
Mendon, MA. 01756
Toll-Free 1-877-TestUSA or 508-634-1530
Fax: 401-737-0200
Email: customerservice@techrecovery.net
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Senior Vice President
Group Publishing Director
PennWell Advanced Technology Division
Mark Finkelstein
Tel: 603-891-9133 Fax: 603-891-0597
mfinkelstein@pennwell.com
Group Publisher
Tim Pritchard
Tel: 603-891-9447 Fax: 603-891-0587
timp@pennwell.com
EASTERN, MIDWESTERN UNITED STATES,
EASTERN CANADA
Greg Goulski
Tel: 603-891-9116 Fax: 603-891-0587
gregg@pennwell.com
TX, OK, PACIFIC, SOUTHWEST, CENTRAL,
MOUNTAIN UNITED STATES, WESTERN CANADA
Tim Pritchard
Tel: 603-891-9447 Fax: 603-891-0587
timp@pennwell.com
UK Sales Manager
Print & Digital Media/
Director of Ancillary Products Group
Kathleen Skelton
Tel: 603-891-9203 Fax: 603-891-0587
kathleens@pennwell.com
FRANCE, BENELUX, SPAIN, PORTUGAL,
WESTERN SWITZERLAND, GREECE
Luis Matutano
Tel: +33 1 39 66 16 87 Fax: +33 1 39 23 84 18
luism@pennwell.com
GERMANY, AUSTRIA, NORTHERN SWITZERLAND,
EASTERN EUROPE, RUSSIA
Holger Gerisch
Tel: +49 89 904 80 144 Fax: +49 89 904 80 145
holgerg@pennwell.com
ITALY
Vittorio Rossi Prudente
Tel: +39 0 49 87 87 584 Fax: +39 0 49 66 04 98
prudente@aviationweek.com
ISRAEL
Dan Aronovic
Tel: +972 9 899 5813 Fax: +972 9 899 5815
rhodanny@actcom.co.il
JAPAN
Manami Konishi, Masaki Mori, e.x. press co.
Tel: +81 3 3556 1575 Fax: +81 3 3556 1576
manami.konishi@ex-press.jp
CHINA, HONG KONG, AUSTRALIA
Adonis Mak, Asia Sales Manager
Tel: +852 2 838 6298 Fax: +852 2 838 2766
adonism@asiaonline.net adonism@actintl.com.hk
TAIWAN
Anita Chen, PRISCO Corp.
Tel: +886 2 2577 7141 Fax: +886 2 2578 4595
as@interface.com.tw
KOREA
Paek Kwon, KES Korea Co. Ltd.
Tel: +82 2 420 1293/1213 Fax: +82 2 420 1294
pkwon@keskor.co.kr
SINGAPORE, MALAYSIA, INDONESIA,THAILAND
Adeline Lam, Publicitas Singapore Pte. Ltd.
Tel: +65 6 836 2272 Fax: +65 6 735 9653
alam@publicitas.com
INDIA
Rajan Sharma, Interads Ltd.
Tel: +91 11 686 1113/1114 Fax: +91 11 686 1112
rajan@interadsindia.com
Marketing Support Services
Lisa A. Bergevin, Marketing Director
Tel: 603-891-9410
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Reprints
Kathleen Skelton
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Global List Rentals Manager
Bob Dromgoole
bobd@pennwell.com
ONLINE SALES
Tom Cintorino, Senior Vice-President, Digital Media
Tel: 603-579-9002 Fax: 603-579-9030
tcintorino@pennwell.com
Greg Goulski, Digital Media Sales Manager
Tel: 603-891-9116 Fax: 603-891-0587
gregg@pennwell.com
sales
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Source: Infonetics Research
2006 2007 2008 2009 2010
3
2
1
0
Revenue (US$B)
Calendar year
Worldwide PON equipment manufacturer revenue forecast
BPON
EPON
GPON
Source: Vertical Systems GroupENS
Fiber availability
Percent of U.S. commercial buildings
with 20+ employees
Fiber-
connected
13.4%
No ber
86.6%
MARKET
WATCH
40G component market to
net $500M by 2012
Telecommunications equipment manufacturers will
purchase approximately $500 million worth of 40-
Gbit/sec transponders and components by 2012, ac-
cording to a new report from market research and
industry analysis firm CIR.
Having run the gamut from over-hyped next big
thing to dead and buried, 40G has once again emerged
as a topic of conversation in the market, say CIR ana-
lysts. The difference today is that real deployments are
beginning to happen and advances in technology and
the availability of 40G transponders have made the
technology into something worth considering.
According to CIRs newest report, the market cur-
rently resides at the very short reach (VSR) level (2
km) with deployments mainly limited to core routers.
While several carriers, including AT&T, Sprint, and
SOFTBANK, have announced plans to upgrade to 40
Gbits/sec, CIR believes that industry-wide 40-Gbit/
sec rollouts will not ramp until 2010. Whether 40G
achieves the market prominence of todays 10G re-
mains to be seen, but at a minimum, that wont happen
until at least 2015, say the analysts.
Nonetheless, 40G will find sizeable markets much
earlier than that, and CIR expects the escalation in the
40G market will be driven by new technology enablers,
cost improvements, and escalating bandwidth demand.
The most important recent innovation has been the
emergence of advanced optical modulation schemes
and improved dispersion compensation, both of which
make 40-Gbit/sec transmission over existing networks
a much more practical proposition.
For more information about CIRs new report, The
Transition to 40Gbps, visit www.cir-inc.com.

Worldwide PON equipment
neared $1B in 2006
Worldwide passive optical network
(PON) equipment sales sequen-
tially grew 12% in the
fourth quarter and 71%
in 2006, reaching $308
million and $965 mil-
lion, respectively, says
Infonetics Research
in its latest PON and
FTTH Equipment and
Subscribers report.
BPON equipment
sales are tanking, says
the company, while
EPON and GPON
sales are growing rapidly. GPON
equipment revenue and ports are
forecasted to grow at triple-digit
five-year compound annual growth
rates (CAGR) between 2006 and
2010. Healthy EPON and GPON
sales will continue fueling growth
in the overall PON market, which
is forecasted to reach nearly $2.4
billion in 2010.
Service providers of all shapes
and sizes are pushing fiber deeper
into their access networks to sup-
port the demand for video, online
gaming, P2P networking, and
other bandwidth-intensive applica-
tions, explains Infonetics Research
analyst Jeff Heynen. GPON and
EPON for both FTTH and FTTB
[fiber-to-the-business] applications
continue to increase, as does Ether-
net FTTH, which has become the
preferred technology for smaller,
North American operators as well
as for cities, municipalities,
and a growing number of
competitive operators in
EMEA, he adds.
Worldwide active Eth-
ernet equipment revenue
jumped 58% and port ship-
ments jumped 54% in 2006,
says the report. Both are ex-
pected to grow in the double
digits yearly through 2010.
Mitsubishi maintains its
strong lead in worldwide
EPON revenue and port market
share, followed by Sumitomo and
Fujitsu. Tellabs, meanwhile, has
maintained its commanding lead
in worldwide BPON revenue and
port market share, followed by Hi-
tachi and Motorola.
For more information about the
report, visit Infonetics on the web
at www.infonetics.com.

Business fiber access to network
services now reaches 13.4% of U.S.
buildings with 20 or more employees,
reveals Vertical Systems Groups lat-
est research. However, small and me-
dium enterprise (SME) sites remain
disproportionately underserved.
Based on building size, nearly twice
as many large enterprise sites are now
fiber-connected compared to the
number of SME buildings. Business
customers have optical fiber access to
network services that are supplied by
one or more service providers.
Optical fiber is a key enabler for de-
livering emerging business network
services, including Ethernet, IP-based
VPNs, voice over IP, and IP video, at
up to gigabit speeds. Millions of fiber
route-miles are installed through-
out the US to ensure high-capacity
backbone carrier transport; however,
last-mile connections to business cus-
tomer sites remain spotty.
Scarcity of fiber is one of the three
major market gaps challenging the
growth of native Business Ether-
net Services, in addition to speed
range and pricing, notes Rosemary
Cochran, principal at Vertical Sys-
tems Group. There are hundreds of
thousands of small and medium size
buildings in the US without access to
fiber Service providers are imple-
menting many different solutions to
fill their fiber gaps through business
partnerships and alternative access
technologies.
Vertical Systems Groups research
can be found on its web site at www.
verticalsystems.com.

Fiber availability
increases, SMEs
still underserved
Compiled by Meghan Fuller
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23 Centre Street New Bedford, MA USA 02740-6322
Toll Free: 800-IS-FIBER / Tel: 508-992-6464 / Fax: 508-991-8876
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