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PON: The Dream Is Alive

Players

Recent sparks of interest in passive optical networking (PON) may justify a reborn faith in this nascent market, despite the impatient cries of naysayers.

PON equipment seeks to lower the cost of access networks by extending optical bandwidth without requiring more expensive "active" components such as lasers or amplifiers (see PONs: Passive Aggression for a primer).

Last week, NEC Eluminant Technologies Inc. announced $26 million in first-round funding, the initial step toward becoming independent from its Japanese parent (see NEC Eluminant Gets $26M). Also this month, Iamba Technologies Inc. emerged from stealth mode, vowing to provide competition for other newly hatched PON startups, such as Salira Optical Network Systems Inc. (see Iamba Technologies and Salira Closes $17M Round).

PON trials have been underway at SBC Communications Inc. (NYSE: SBC) for months, and requests for proposal have been issued by other leading carriers, including Qwest Communications International Corp. (NYSE: Q). Internationally, British Telecom (BT) (NYSE: BTY), Deutsche Telekom AG (NYSE: DT), and France Telecom SA have all expressed interest.

So far, however, there are only about 30 deployments of PON technology worldwide, nearly all of them with small carriers and cable operators seeking to serve small businesses and residential subscribers.

Table 1: PON Deployments by Company to Date
PON Vendor Deployment status Type of product
Alcatel SA (NYSE: ALA; Paris: CGEP:PA) In trials APON
Alloptic Inc. One customer plus trials EPON
Iamba Technologies Inc. In development N/A
Marconi Corp. PLC (Nasdaq/London: MONI) Two customers plus trials APON
NEC Eluminant Technologies Inc. In trials APON
Oki Network Technologies In trials APON
OnePath Networks In trials EPON
Optical Solutions Inc. Twenty-three customers plus trials RF-based, APON
Paceon One customer plus trials APON
Quantum Bridge Communications Inc. Six customers plus trials APON
Salira Optical Network Systems Inc. In development EPON
Terawave Communications Six customers plus trials APON
Wave7 Optics Inc. In trials EPON

Still, more than $527 million has been invested in private PON companies over the last two years -- at least half of all startups have received new funding this year.

Table 2: Funding for PON Startups, 2000 - 2001
PON Vendor Funding to date Date of most recent round
NEC Eluminant Technologies Inc. $26 million Oct-01
Salira Optical Network Systems Inc. $23.9 million Aug-01
Alloptic Inc. $43 million Jun-01
Iamba Technologies Inc. $10 million Feb-01
Terawave Communications $133 million Jan-01
Wave7 Optics Inc. $9 million Oct-00
OnePath Networks $54 million Oct-00
Optical Solutions Inc. $104 million Aug-00
Quantum Bridge Communications Inc. $124 million Apr-00

These mixed messages have fueled a growing impatience with the slow realization of PON in carrier networks. While the technology continues to boil away on broadband’s back burner, many are questioning whether the still-tiny market will ever gain its legs.

Newest Comments First       Display in Chronological Order
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uopixchen
User Ranking
Friday December 20, 2002 8:12:57 PM
no ratings
I have some questions need help, I know that
if EPON wants to compare with APON, it need to establish priority-based traffic control and providing traffic shaping. My questions are,

1. In additional to traffic shaping, do we need to
have policing (e.g., dual-leaky bucket or 3-color
marker) and Congestion control (e.g., WRED) installed on EPON ?

2. What I guess is that we need to perform Policing on upstream, and shaping on downstream. Is it correct ?

Thanks for your kindly answer.
mjlconde
User Ranking
Tuesday August 27, 2002 7:17:46 AM
no ratings
Hello Doco,
I´m planning the design of a APON network over a existing SDH network. We want to reuse the existing infraestructure as much is possible. So I want to ask you if you know if the OLT can be located at the PoP (point of presence), that it means, in the node primary locations, an then connect the OLT with the SDH equipment, because they have this kind of interfaces. If you konw how to do this, please, explain to me, because I have a lot of doubts in this area.
Thanks very much and, I expect your answer. Mª Jesus.
optical Mike
User Ranking
Monday March 18, 2002 9:46:20 AM
the comment was about a "latency of 30ms" talking about time not dB or optical level
rjmcmahon
User Ranking
Sunday March 17, 2002 2:53:25 PM
no ratings
1MB with potential of higher speed. Isn't this a low-cost competitor?
____________________

One is lucky to get 1Mb/s in bursts. Most of the time its much less. Also, the upstream rate limiting prohibits services like backing up the family photo server to a colo locker box.

The following download times may help one understand the potentials. (Note: Realtime for most human senses require response times less than 3ms) First the sizes

A) Photo (500KB)
B) Song (4MB)
C) Movie (3GB)
D) Library of Congress (50TB)

And the download times (no congestion assumed)

A) 768Kbs DSL - 5.2s, 42s, 8.7hrs, 17 yrs
B) 100Mbs FE - 40ms, 320ms, 4min, 47 days
C) 10Gbs - 4us, 3.2ms, 2.4s, 11hrs
D) UPS - days, days, days, flight to DC

Network owners building infrastrucutre to support discount consumptions should look to Walmart for their business model. Imagine if Walmart charged access fees and built parking lots for horse and carriages. We'd laugh at them.
Cheesy Guy
User Ranking
Sunday March 17, 2002 1:57:00 PM
no ratings
Also can you comment on the details of
the PON calculator. There is a statement that
we can tolerate 30dB over 20km. I'm not sure
what that means.
Cheesy Guy
User Ranking
Sunday March 17, 2002 1:41:01 PM
no ratings
The article compares high speed DSL with
PON. Seems like cable modem offers very high speed, 1MB with potential of higher speed.
Isn't this a low-cost competitor?
sinorat
User Ranking
Tuesday January 29, 2002 4:59:40 PM
Possibly Overdosed on Narcotics
doco
User Ranking
Thursday January 17, 2002 2:20:23 PM
no ratings
> Would the token bus architecture work,
> creating a logical ring and
> passing around an access token?

No - not readily. The head end can receive and transmit to each of the ONUs. The end points (ONUs) can receive from and transmit to the head-end. BUT an endpoint can not directly send a message to another endpoint.

Because of this, the endpoint would need to tell the head end when he is done transmitting, and then the head-end could tell the next node to start. Because of the latency of sending a signal 20km, this would end up with large chunks of time not being used.

You also have a tradeoff in latency vs. % of bandwidth available. With the larger guard bands it is more efficient to send larger bursts of data at a time. However, then by the time each of 32 nodes sends a large burst, and you have all the guardbands, you might be talking an additional latency of 30ms or much more. Adding that much latency would put you into the range where you would need to add echo cancelation for voice traffic. Echo cancelation is expensive, so if it can be avoided by having some extra complexity by doing the ranging process it ends up being a cheaper system.
rjmcmahon
User Ranking
Thursday January 10, 2002 8:57:39 PM
no ratings
The tricky part in both of these is that either a very large guard band of time is needed between each burst of traffic, OR every end node needs to be told how far they are from the headend.
______________________

Would the token bus architecture work, creating a logical ring and passing around an access token?
HarveyMudd
User Ranking
Thursday January 10, 2002 2:49:55 PM
no ratings
I have been hearing about the PON and HFC technology for so many years. In a way it is similar to hearing about MMDS and LMDS.

QWEST has been caught in its own game of wasting company resources. Unlike any other RBOC it has lost 70% of its markwet value.It had dedicated a significant amount of resources for testing all products under the sun. Against the conventional wisdom, QWEST is also deploying Softswitches. This will not let buy anything new for QWEST customers except unstability.

SBC has aklso has lost about 40% of itsmarket value during last year. The company is now the largest RBOC and is not in a position to deploy new technologies unless it becomes profitable by cutting back on its workforce. SBC also wastes a lot of its resources on trying things that are not needed.

Many other carriers are not likely to explore PON technology for deployment.
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