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 Documentaries
The Next-Gen Network Disconnect

10|29|14   |   01:23   |   (0) comments


There's a lot of talk about making networks more simple with SDN, NFV and next-gen broadband technology – but what about the complexity of introducing such capabilities?
LRTV Custom TV
Grow Your VPN Service Revenue

10|27|14   |   4:00   |   (0) comments


Watch how CSP product managers can better differentiate and maximize the value of their Internet, VPN and cloud services for business services customers, by adding premium application performance visibility to their data services.
LRTV Huawei Video Resource Center
Add SmartSense to Make Your Network Ready for 4K

10|27|14   |   3:23   |   (0) comments


To make current networks ready for the coming 4K TV challenges, Huawei SmartSense solution will conveniently add experience and operation capabilities to boost telcos' future business.
LRTV Huawei Video Resource Center
NetMatrix: Orchestrate the SDN & NFV World

10|27|14   |   4:11   |   (0) comments


Orchestrator is important in SDN/NFV world to make Telcom network automate, open and efficient. NetMatrix, as Huawei SDN/NFV orchestrator solution, has been in deployment and is showing its' value in real scenarios.
LRTV Huawei Video Resource Center
Huawei FusionSphere Enabling ICT Transformation

10|27|14   |   3:21   |   (0) comments


Jeffrey Gao, Chief Strategy and Marketing Officer of Huawei West Europe Region, talks about the company's future-oriented cloud strategy. Huawei is providing full portfolio of IT architecture and building an open cloud ecosystem with innovative cloud OS FusionSphere to support customers' ICT transformation.
LRTV Huawei Video Resource Center
Huawei Partner Interview: StorIT

10|27|14   |   4:20   |   (0) comments


An interview with Suren Vendantham of StorIT, a value-added distributor for Huawei in the Middle East region.
LRTV Huawei Video Resource Center
Huawei Partner Interview: Optimus

10|27|14   |   3:14   |   (0) comments


An interview with Nehul Goradia of Optimus, a value-added distributor for Huawei in the Middle East.
LRTV Huawei Video Resource Center
Huawei Partner Interview: Enterprise Solutions

10|27|14   |   4:57   |   (0) comments


An interview with Pouya Parsafar of Enterprise Solutions, a valued distributor partner with Huawei.
LRTV Huawei Video Resource Center
Huawei Customer Interview: OETC

10|27|14   |   2:35   |   (0) comments


An interview with Saif Albadi, of the Oman Electricity Transmissions Company, a government utility in that company that partners with Huawei.
LRTV Huawei Video Resource Center
Huawei Customer Interview: Jannah Hotels & Resorts

10|27|14   |   3:13   |   (0) comments


An interview with Nehmeh Darwish, CEO of Jannah Hotel & Resorts, about his collaboration with Huawei across five hotels in the United Arab Emirates.
LRTV Huawei Video Resource Center
Huawei's Commitment to the Middle East: GITEX 2014 Wrap-up

10|27|14   |   3:41   |   (0) comments


Highlights from the Huawei pavilion at GITEX in Dubai, United Arab Emirates, with interviews with current Huawei customers.
LRTV Huawei Video Resource Center
Huawei: GITEX 2014 Day 1 Highlights

10|27|14   |   2:58   |   (0) comments


Highlights from the Huawei pavilion at GITEX (Gulf Information Technology Exhibition), an annual computer and electronics trade show and conference in Dubai, United Arab Emirates.
Upcoming Live Events
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Microsoft's Skype Embraces WebRTC on IE
Sarah Reedy, Senior Editor, 10/27/2014
FTC Slaps AT&T With Throttling Lawsuit
Sarah Reedy, Senior Editor, 10/28/2014
AT&T: Merger Review Halt Won't Hurt Us
Alan Breznick, Cable/Video Practice Leader, 10/23/2014
China's MVNOs Hit the Wall
Robert Clark, 10/27/2014
Roku Raises $25M, But for What?
Mari Silbey, Independent Technology Editor, 10/23/2014
Like Us on Facebook
Twitter Feed