Light Reading
Did Infinera finally land one of the big US telcos? Well ...

Verizon Teases at Infinera Event

Craig Matsumoto
News Analysis
Craig Matsumoto
9/16/2011
50%
50%

SUNNYVALE, Calif. -- Wall Street analysts got their hopes up Thursday morning when they found out Verizon Communications Inc. (NYSE: VZ) was speaking at Infinera Corp. (Nasdaq: INFN)'s DTN-X product launch here. Could Infinera have finally landed one of the big U.S. telcos as a customer?

Nah.

After the event's live webcast was done, analysts swarmed the stage to talk to Stuart Elby, Verizon's vice president of technology. He told them his company hasn't even issued the request for proposals (RFPs) for the long-haul packet-optical transport platform (P-OTP), the dream box that he's described to vendors for a couple of years. (See Verizon Rethinks Long Haul.)

(The P-OTP request for information (RFI) is out, at least, Elby said.)

Analysts' next question, asked rather bluntly, was, "Why are you here?" Elby explained that Verizon has been working with equipment vendors to plan next-generation transport architectures and coach them toward building something like a P-OTP. Infinera is included in that number, and Verizon's input did help shape the DTN-X's development.

Verizon's primary long-haul transport vendors are Alcatel-Lucent (NYSE: ALU) and Ciena Corp. (NYSE: CIEN). Elby said the carrier is willing to add another. Low price alone wouldn't be enough; Verizon would be looking for big cost savings, something around 30 to 50 percent. If Verizon can "get that kind of dramatic change in long-term cost structure by taking that step, we'll do it," Elby said.

The DTN-X certainly has dramatic potential. Each card can send 500 Gbit/s of data, and the system integrates Optical Transport Network (OTN) switching down to the ODU-0 (1Gbit/s) level. MPLS transport will eventually be integrated, although Infinera hasn't said when. (See Infinera Unleashes Coherent 100G.)

But as one analyst told Light Reading, it's reasonable to think that Verizon's RFP might not really come out until 2013, with winners chosen in 2014. By that time, it's conceivable that AlcaLu and Ciena (Verizon's current long-haul transport vendors) will have come out with their DTN-X responses. So, Verizon isn't necessarily a slam dunk for the DTN-X.

Even so, Verizon is earnestly interested, and it's not alone. Andrew Schmitt of Infonetics Research Inc. and Eve Griliches of ACG Research both noted that carriers love what they've seen from Infinera.

"The expectations of the financial analysts are pretty low, and the expectations of the operators and their opinions of Infinera are pretty high," said Schmitt. (He thinks the DTN-X release will get the financial analysts to warm up to Infinera more.)

Infinera has room for improvement, though. Product cycles have to come more quickly, for instance. "They've got to move to more of the Intel Corp. (Nasdaq: INTC) tick-tock model," where chips are moved to more advanced manufacturing processes on a regular basis, Schmitt says.

There's some evidence Infinera will be doing this. Infinera says its 500Gbit/s photonic integrated circuit will be followed by a 1Tbit/s version (ten 100Gbit/s wavelengths) in 2014 or 2015, then a 2Tbit/s version a couple of years later.

— Craig Matsumoto, West Coast Editor, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 4:53:31 PM
re: Verizon Teases at Infinera Event


The Wall Street analysts really were impressed that Verizon came out to talk at this event, but I'm not the only one who thought bigger things were being implied there. Elby deflated those assumptions pretty quickly.


Randy Niklaus, CTO of XO, also talked -- less surprising, considering XO is already a customer. He speaks at a lot of venues, but he gives out a lot of technical info, and the analysts appreciated that.


Matthew Finnie of Interoute wasn't there but recorded a video speech. That didn't get much buzz at the event -- but Interoute can't complain. They got got their own LR story out of this!

Stevery
50%
50%
Stevery,
User Rank: Light Beer
12/5/2012 | 4:53:26 PM
re: Verizon Teases at Infinera Event





He thinks the DTN-X release will get the financial analysts to warm up to Infinera more.


A quick review of infn's record so far:

<ul>
<li>2007 Inverse 40G MUX </li>
<li>2009 40G PICs out of development </li>
<li>2010 Kill 40G, go do 100G coherent </li>
<li>2011 Demo PICs with 100G coherent </li>
</ul>

Would Andrew like to make a comment about execution record and how that will affect the&nbsp;analysts' view?


&nbsp;

Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
From 4G to 5G: Alcatel-Lucent's Dave Geary

11|25|14   |   09:09   |   (0) comments


Dave Geary, President of Wireless at Alcatel-Lucent, talks about the evolution of the 4G market, small cells, partnerships, 5G and the IoT.
LRTV Huawei Video Resource Center
Building a Secure Telefonica Network With Huawei's High-End Firewall

11|24|14   |   4:37   |   (0) comments


Andrew Davies, IP architect of the Telefonica, a leading digital communications company, discusses the Huawei security gateway solution and putting the solution into the testbed.
LRTV Huawei Video Resource Center
Huawei Partners with Spirent to Verify CE12816's 10GE Port & TRILL Networking Capabilities

11|24|14   |   2:50   |   (0) comments


Spirent Communications is the world's leading supplier for telecom testing appliances and solutions. Spirent has been in a close partnership with Huawei for a long time.
LRTV Huawei Video Resource Center
Saudi Airlines & Its ICT Transformation

11|24|14   |   2:07   |   (0) comments


In this video, Saudi Airlines discusses its network problems and how Huawei's Agile Network is its all-in-one solution.
LRTV Huawei Video Resource Center
Huawei's Agile Switch Benefiting Saudi Arabia's Yamamah Hospital

11|24|14   |   2:40   |   (0) comments


Saudi Arabia's Yamamah Hospital speaks about how Huawei's Agile Switch has improved the medical service's network infrastructure.
LRTV Huawei Video Resource Center
FanPlay & Huawei Build a Wireless Agile Smart Stadium

11|24|14   |   2:13   |   (0) comments


FanPlay is a cloud-based white label service, which is effectively a football fan engagement platform underpinned by mobile payment technology.
LRTV Huawei Video Resource Center
Building an Agile Stadium

11|24|14   |   3:54   |   (0) comments


Stadiums may be thousands of tons of concrete and steel, but they now need to be agile. Being at the stadium may not be as alluring as it once was. Sports franchises and stadium operators discuss how to get fans back.
LRTV Huawei Video Resource Center
Huawei Helps ChinaCache Tackle Challenges in the Internet Industry

11|24|14   |   3:09   |   (0) comments


ChinaCache is China's largest content distribution network supplier. Huawei's CE12800 has provided ChinaCache with very strong support in its establishment of an infrastructure network.
LRTV Huawei Video Resource Center
Cefinity on Managed Security Services & Next-Generation Firewall

11|24|14   |   7:05   |   (0) comments


Cefinity is a cloud management service provider in Southeast Asia. Ivan Zhang, CEO of the company, discusses the implementation of security service management in the cloud era.
LRTV Huawei Video Resource Center
Huawei's Agile Gateway in the Eyes of Cefinity

11|24|14   |   2:11   |   (0) comments


Cefinity is a managed service provider for enterprise networks. The company currently uses Huawei's AR series routers for the most complete range of functions. CEO Ivan Zhang speaks about the advantages of the AR series routers.
LRTV Huawei Video Resource Center
CTO of Bus-Online Talks About Huawei's Agile Gateway

11|24|14   |   2:53   |   (0) comments


Bus-Online covers around 100 million users everyday. In addition to providing mobile TV, and advertising services to the public, Bus-Online has also entered the field of mobile Internet.
LRTV Huawei Video Resource Center
Amsterdam ArenA as an Agile Campus

11|24|14   |   3:31   |   (0) comments


The Amsterdam ArenA, home of the Ajax soccer team, can be a crowded space. ArenA has partnered with Huawei to work on bringing ample bandwidth to 53,000 people at the same time.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Bell Labs Chief Slams 'Toy' Networks
Robert Clark, 11/19/2014
$38.3M: Ain't That a Kik in the SMS
Sarah Reedy, Senior Editor, 11/20/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
Operators Should Block Ads to Get Their Cut, Startup Says
Sarah Reedy, Senior Editor, 11/24/2014
The New Wave of IP + Optical Integration
Ray Le Maistre, Editor-in-chief, 11/21/2014
Like Us on Facebook
Twitter Feed