3:05 PM -- SAN DIEGO -- OFC/NFOEC 2009 -- Verizon Communications Inc. (NYSE: VZ) wants Layers 1 and 2 to get integrated, but the Cisco Systems Inc. (Nasdaq: CSCO) method of IP-over-DWDM, where transponders get integrated into the router, isn't the answer, says Stuart Elby, vice president of network architecture.
"We don't see that as actually lowering the cost," because router ports are inherently expensive due in part to the amount of processing sitting behind them, he said.
Comcast Corp. (Nasdaq: CMCSA, CMCSK) is a fan of IP-over-DWDM, though, partly because it can help lower optics costs more quickly. In a later presentation on the same panel, Vik Saxena, Comcast senior director of network architecture, noted that a pair of client-side optics for a 100-Gbit/s connection costs more than three times what the 40-Gbit/s optics cost. "There is a lot of inefficiency in the traditional approaches of doing [separate] line-side/client-side things," he said.
I seem to remember that 40G optics have been shipping for maybe 10 years already.
To compare tht 40g price with100G optics that are still science fair projects hardly seems fair.
Having said tha5t the cost of a 100G trasponder is likely to remain pretty high - at least WRT COGs. If the manufacturer chooses to discount the bejeezus out of the transponder then thats their problem.
If you look a Nortel's demo unit, its basicaly two 40G circuits in parallel. So COGs are x2. But then they have to run the 40Gs 25% faster, so that means they hae to Golden Sample the parts.
But to get the 40G to work Nortel already had to Golden Sample their parts - so 100G is aGolden Sample of a Golden Sample!
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