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
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
LRTV Documentaries
BTE Keynote: The Software-Defined Operator

7|24|14   |   18:43   |   (1) comment


Deutsche Telekom's Axel Clauberg explains the concept of the software-defined operator to the Big Telecom Event (BTE) crowd.
Light Reedy
Numbers Are In: LR's 2014 Salary Survey

7|24|14   |   1:25   |   (7) comments


Our fourth annual Salary Survey paints a picture of who's hiring, firing, earning, and yearning for a change in the telecom industry.
LRTV Custom TV
Driving the Network Transformation

7|23|14   |   4:29   |   (0) comments


Intel's Sandra Rivera discusses network transformation and how Intel technologies, programs, and standards body efforts have helped the industry migration to SDN and NFV.
LRTV Custom TV
Distributed NFV-Based Business Services by RAD

7|18|14   |   5:38   |   (0) comments


With the ETSI-approved Distributed NFV PoC running in the background, RAD's CEO, Dror Bin, talks about why D-NFV makes compelling sense for service providers, and about the dollars and cents RAD is putting behind D-NFV.
LRTV Custom TV
MRV – Accelerating Packet Optical Convergence

7|15|14   |   6:06   |   (0) comments


Giving you network insight to make your network smarter.
LRTV Custom TV
NFV-Enabled Ethernet for Generating New Revenues

7|15|14   |   5:49   |   (0) comments


Cyan's Planet Orchestrate allows service providers and their end-customers to activate software-based capabilities such as firewalls and encryption on top of existing Ethernet services in just minutes.
LRTV Custom TV
Symkloud NVF-Ready Video Transcoding, Big Data

7|9|14   |   3:41   |   (0) comments


Kontron and ISV partner Vantrix demonstrate high-performance video transcoding and data analytic solutions on same 2U standard platform that is ready for SDN and NFV deployments made by mobile, cable and cloud operators.
LRTV Huawei Video Resource Center
The Evolving Role of Hybrid Video for Competitive Success

7|4|14   |   4:09   |   (0) comments


At Huawei's Global Analysts Summit in Shenzhen, China, Steven C. Hawley from TV Strategies speaks to us about the evolving role of hybrid video for competitive success.
LRTV Huawei Video Resource Center
How CSPs Leverage Big Data in the Digital Economy

7|4|14   |   4:48   |   (2) comments


Justin van der Lande from Analysys Mason shares with us his views on how telecom operators can leverage customer asset monetization with big data. His discusses the current status of big data applications and the challenges and opportunities for telecom operators in the digital economy era.
LRTV Huawei Video Resource Center
Accelerator for Digital Business – Future Oriented BSS

7|4|14   |   3:08   |   (0) comments


Mobile and internet are becoming intertwined; IT and CT are integrating; and leading CSPs have begun to transform to information service and entertainment providers. How should the BSS system evolve to enable this transformation? Karl Whitelock, an analyst at Frost & Sullivan, shares his views.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
Infographics
Packet Design asks network professionals how they handle the cloud, SDN, and network management.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
Facebook: 30% of Users Are Mobile-Only
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/24/2014
Is Windstream Boldly Setting a New Trend?
Carol Wilson, Editor-at-large, 7/29/2014
Nokia Holds Steady in Q2, Raises Outlook
Ray Le Maistre, Editor-in-chief, 7/24/2014
U-verse Growth Slips But Still Strong
Alan Breznick, Cable/Video Practice Leader, 7/24/2014
Verizon Applies 3G Throttling Policy to LTE
Sarah Reedy, Senior Editor, 7/25/2014
Like Us on Facebook
Twitter Feed