& cplSiteName &

ADMs Get Smaller, Cheaper

Light Reading
Supercomm News Analysis
Light Reading
6/14/2004
50%
50%

Chipmakers Parama Networks Inc. and PMC-Sierra Inc. (Nasdaq: PMCS) are compacting the functions of add/drop multiplexers (ADMs) onto single chips, aiming to catalyze a generation of lower-cost systems.

Working on the low end, PMC-Sierra today announced a $300 chip that could bring a pizza-box-sized ADM's price to the range of $3,000 to $5,000. Parama, likewise, is continuing to tout its own ADM-on-a-chip and a $5,000 system price, although the company has its eye on higher-end systems than does PMC. Parama will be showing its chips at Supercomm next week.

According to Parama CEO Hemant Bheda, the driver for single-chip products is the fear of low-cost competition from China, which has led both carriers and equipment vendors to rethink the ADM. That's not why Parama got started -- the company originally wanted to develop an entire system though it now sells only chips -- but it's pointing ADM vendors towards the chip camp, he says.

The most ambitious project along those lines comes from Infinera Inc., which recently revealed details of a chip combining ADM functions with WDM optics (see Infinera Declares WDM War). Parama and PMC-Sierra are taking a more down-to-earth approach, coalescing the add/drop functions onto a chip but leaving the optics -- WDM or otherwise -- up to the equipment vendor.

Parama introduced two chips in January, a lower-end device for OC3 and OC12 speeds and a second chip targeting interfaces up to OC768 (see Parama Intros 'ADM on a Chip'). The latter is a bit starry-eyed but helps draw in customers. "They want to see [the chip family] scale from OC48 up to multiple OC192s and, sometime in the future, to OC768," Bheda says.

Bolstering its low-end pitch, Parama today announced interoperability with Finisar Corp.'s (Nasdaq: FNSR) configurable optics, which can be altered in software to provide OC3, OC12, or Gigabit Ethernet interfaces. "If an OEM were to take these two and install them in a system, they could have completely software-configurable line rates," Bheda says. (See Parama Intros 'ADM on a Chip' and Parama & Finisar Intro Sonet/SDH Chips.)

Parama's chips are sampling, with general availability slated for July. Two ADM vendors are using Parama's chip and its reference designs to develop products that could surface within six months, Bheda says.

Unlike Parama, PMC is sticking to line speeds of OC12 and below with its ADM 622 family of chips. "Count the number of 10-Gbit/s rings around the world today: That's not where the money is," says Babak Samimi, product marketing engineer for PMC's service provider division. PMC's target is the pizza-box kind of ADM, a system that might even sit in the basement of an office building.

The PM5337 and PM5338 can handle up to 28 T1 lines and three DS3s. The PM5337 also adds eight ports of up to 1-Gbit/s Ethernet, a concession to a trend PMC sees of vendors "MSPP-izing the ADM, making them data capable," Samimi says, referring to the multiprotocol abilities of multiservice provisioning platforms.

— Craig Matsumoto, Senior Editor, Light Reading

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
goundan
50%
50%
goundan,
User Rank: Light Beer
12/5/2012 | 1:35:20 AM
re: ADMs Get Smaller, Cheaper
EOM
goundan
50%
50%
goundan,
User Rank: Light Beer
12/5/2012 | 1:35:19 AM
re: ADMs Get Smaller, Cheaper
Latest pricing information from AP. A big french vendor won an ADM deal last week from an AP customer for STM-1 ADMs at $1800 a pop. STM-4 ADMs for $4200 a pop with protection including lasers. Prices are already below the $5K quoted in the article.
Telecommedian
50%
50%
Telecommedian,
User Rank: Light Beer
12/5/2012 | 1:35:13 AM
re: ADMs Get Smaller, Cheaper
Ah, but read more closely, please. The $5000 pizza box mentioned in the article is an OC-192. That's STM-64 for those of you who speak SDH.

If the big French vendor (and I don't have a Cluseau who that might be with your clever obfuscation) is selling OC-12s for $4200 a pop and the new guys are promising 16 times the speed at $5000, it's a new world order, paradigm, or other politically correct phrase.

And before anyone starts spouting about apples to oranges (or bagels to croissants), yes the OC-192 pizza box doesn't support all of the DS3s and other goodies that the OC-12 probably supports. Each has a place in the network. But if these guys can make an OC-192 for $5000, imagine what's going to happen to the OC-12 market going forward.

Ahh, I can almost smell the bubble rising again. (OK, that's a pretty awful metaphor. Just ignore it.)

TC
PO
50%
50%
PO,
User Rank: Light Beer
12/5/2012 | 1:35:08 AM
re: ADMs Get Smaller, Cheaper
If the big French vendor (and I don't have a Cluseau who that might be with your clever obfuscation) is selling OC-12s for $4200 a pop and the new guys are promising 16 times the speed at $5000, it's a new world order, paradigm, or other politically correct phrase.

I'll be more interested when the article says that these are the bottom-line prices, rather than a "get me started" price. Are these prices inclusive of all required ancillaries? Or do we add costs for licensing software, management interfaces, specialty cabling, etc, etc on top of these numbers?
particle_man
50%
50%
particle_man,
User Rank: Light Beer
12/5/2012 | 1:34:59 AM
re: ADMs Get Smaller, Cheaper
What I have heard on the street about the $5K ADM is that the chip vendors are aiming to bring the COGS for the box down to where the OEMs can sell them for $5K and still have decent margin.

I think the competition between the hardware vendors will determine how much they can charge for things like software, cables, and the like.

The whole conversation appears to be happening in the SDH/Asia arena. I wonder if the SONET vendors are paying attention?

PM
From The Founder
NFV's promises of automation and virtualization are intriguing, but what really excites service providers is the massive amount of money they could save.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
AT&T's Tech President Preps Workforce for the Future

7|26|17   |   5:47   |   (6) comments


AT&T is focused on the software-defined network of the future and is reskilling its workforce to get ready too, according to AT&T's President of Technology Development Melissa Arnoldi.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Telecom Innovators Video Showcase
Mavenir on RCS Cloud Platform & Multi-ID

7|10|17   |     |   (0) comments


Guillaume Le Mener, head of marketing and corporate development at Mavenir, discussed RCS and the recent launch of Multi-ID, which supports T-Mobile's DIGITS, the revolutionary new technology that breaks down the limitation of one number per phone and one phone per number.
LRTV Custom TV
ADTRAN Executive Outlines Trends in Next-Generation 10-Gigabit Cable Networks

7|10|17   |     |   (0) comments


Hossam Salib, VP of Cable and Wireless Strategy at ADTRAN, outlines key trends as MSOs begin to deploy next-generation Gigabit and 10-Gigabit cable networks. In the interview, Hossam outlines the advantages of a Fiber Deep architecture, FTTH options including EPON and RFoG, and the importance of SDN and NFV in building next-generation high-bandwidth cable networks.
LRTV Interviews
Global Capacity: Bandwidth Demand Driving Ethernet Growth

7|6|17   |   6:37   |   (0) comments


At Light Reading's Big Communications Event in Austin, Texas, Global Capacity's VP of Marketing Mary Stanhope talks about how the demand for bandwidth is changing the way service providers deliver broadband services.
LRTV Interviews
Colt's Services Chief on Digital Delivery

7|5|17   |   16:12   |   (0) comments


Rogier Bronsgeest, the chief customer experience officer (chief CEO!) at Colt, discusses the way in which the service provider interacts with its customers these days and his aggressive net promoter score (NPS) targets.
Women in Comms Introduction Videos
BT VP: Women Should Fill Security Talent Gap

7|5|17   |   6:00   |   (2) comments


By 2020 there will be six security jobs for every qualified worker, and Kate Kuehn, vice president of Security for BT in the Americas, says BT wants to encourage women to fill the shortage in jobs.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
NFV, SDN, Big Data – It's All About Automation
Craig Matsumoto, Editor-in-Chief, Light Reading, 7/21/2017
AT&T's Tech President Preps Workforce for the Future
Kelsey Kusterer Ziser, Editor, 7/26/2017
What's a Little Throttling Between Friends?
Mari Silbey, Senior Editor, Cable/Video, 7/24/2017
The Hidden (Human) Cost of Automation
Steve Saunders, CEO and founder, Light Reading, 7/26/2017
BBC Head: We Must Reinvent Broadcasting for a New Generation
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 7/21/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.