Light Reading
DWDM vendor raises another round, plans to cut manufacturing costs and maybe buy a thing or two

Movaz Bags $20M More

Phil Harvey
News Analysis
Phil Harvey
1/26/2006
50%
50%

Movaz Networks Inc. announced today it has closed $20 million in venture funding, along with a line of credit for $12 million.

The investors in this latest round include Anschutz Investment, Comcast Interactive Capital, Menlo Ventures , Oak Investment Partners , Meritech Capital Partners , and WorldView Technology Partners . Movaz says it has raised $182 million to date.

The round was closed on December 30, and this is the first time Movaz has acknowledged Comcast as an investor and customer, an item Light Reading reported in 2004. (See Sources: Comcast Has Movaz Stake.)

Movaz says it raised the new funds to help it grow from a "50 to 60 million dollar a year company to a $100 million dollar company," according to CEO Bijan Khosravi. He says that scaling the company will help it reduce costs in manufacturing and will boost its customer support.

Carriers are still buying lots of DWDM gear, Khosravi says, but they're looking toward using ROADMs very soon. He says in the last three months Movaz has seen most carrier networking decisions allowing for ROADMs.

That will benefit a company like Movaz, but it's facing tough competition from Asian equipment makers, which can sell just about anything in a network at a lower cost than their U.S.-based counterparts.

"Price is still the top priority of carriers, so the Chinese do make it challenging," says Heavy Reading chief analyst Scott Clavenna. "Outside the U.S., Huawei and ZTE are everywhere and making it tough on traditional DWDM suppliers."

Khosravi says he's not ready to say what Movaz has decided to do to cut its manufacturing costs: "But we have to think about other countries and outsourcing because we have to reduce the costs."

Competitive cost pressure is one thing. Another is that the price of ROADMs has just been generally too high in past years, a factor that has stunted the technology's adoption. (See ROADMs Roll On and ROADM Overview.)

Meanwhile, Movaz is also benefiting from a general need for DWDM applications in all sorts of networks -- cable, municipal, telecom, enterprise, and federal. Khosravi says about 15 to 16 percent of Movaz's revenues come via its OEM partners, Lucent Technologies Inc. (NYSE: LU) and Motorola Inc. (NYSE: MOT).

In the cable space, Movaz says it has five network wins altogether, including Comcast Corp. (Nasdaq: CMCSA, CMCSK). The company lays claim to 15 enterprise network customers, including some educational institutions and research networks. But telecom carriers make up most of Movaz's 90 customers and the more than 4,000 nodes it claims to have in service.

So does the new money mean Movaz will soon be looking for an exit?

"Everyday it is on my mind how to scale the company more," says Khosravi.

To reach its immediate goal of becoming a $100-plus million company, Movaz may even consider a small acquisition. "To get there, we have to broaden our portfolio, and maybe a quick way to get there is to buy someone. We are discussing all of those strategies."

— Phil Harvey, News Editor, Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Educational Resources
sponsor supplied content
Educational Resources Archive
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 Custom TV
Using Service Quality to Drive WiFi Monetization

10|22|14   |   6:51   |   (0) comments


Live from the SCTE conference: Heavy Reading's Alan Breznick explores the forces shaping the WiFi opportunity in an interview with CableLabs' Justin Colwell and Amdocs' Ken Roulier.
LRTV Custom TV
Distributed Access Architectures – 2

10|21|14   |   8:51:00 AM   |   (0) comments


ARRIS CTO Network Solutions Tom Cloonan discusses why many if not most MSOs will continue with integrated CCAP, while addressing why some are also looking at two futuristic, distributed access architectures: Remote PHY and Remote CCAP.
LRTV Custom TV
Distributed Access Architectures – 1

10|21|14   |   9:01   |   (0) comments


SCTE Sr. Director of Engineering Dean Stoneback discusses the pros and cons of distributed access architecture (DAA) and its various forms, which range from basic Remote PHY to full CMTS functionality in the node.
LRTV Custom TV
The WiFi Road to Riches – 2

10|21|14   |   3:58   |   (0) comments


ARRIS Senior Solution Architect Eli Baruch talks about how MSOs can enable public and community WiFi through 1) outdoor access points, 2) businesses seeking to offer WiFi to customers, and 3) residential WiFi gateway extensions.
LRTV Custom TV
The WiFi Road to Riches – 1

10|21|14   |   10:15   |   (0) comments


SCTE Director of Advanced Technologies Steve Harris discusses WiFi deployments, drivers, challenges and advances, including 802.11ac, carrier-grade WiFi, community WiFi, Hotspot 2.0, Passpoint, WiFi-First and voice-over-WiFi.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
Upcoming Live Events
October 29, 2014, New York City
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
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
Analysts Warn of Major NFV Gaps
Carol Wilson, Editor-at-large, 10/22/2014
Is Health the Killer App for the IoT?
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/22/2014
Drones Hover Over the IoT Sector
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/23/2014
1959 Newsreel: Make Phone Calls – From Cars!
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/24/2014
Meet the Phantom Network for NFV
Ray Le Maistre, Editor-in-chief, 10/23/2014
Like Us on Facebook
Twitter Feed