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DSL/vectoring/G.fast

Moto to Resell ECI DSLAMs

If at first you don't succeed, try, try again. That appears to be the motto of ECI Telecom Ltd. as it pins its hopes of breaking into the North American broadband access market on a new OEM deal with Motorola Inc. (NYSE: MOT), announced early this morning. (See Motorola, ECI Team Up.)

Motorola has the "global rights to brand, market, and sell ECI's portfolio of access infrastructure solutions," which includes central office and remote DSL access multiplexers (DSLAMs). (See ECI, Keymile Debut IP DSLAMs and ECI Takes CO to the Street.)

On paper, the deal makes sense for both parties.

For ECI, it gives it a fresh line of attack on North America, where it had tried, but failed, previously with Nortel Networks Ltd. as its partner. (See ECI: Nortel Didn't Deliver.)

With that relationship consigned to the dust bin, ECI began looking for a new partner. On a conference call in February this year, CEO Rafi Maor said he had reached an agreement with "a major North American manufacturer," and that "sales activities from this [relationship] are set to start in late 2007." (See ECI Revisits Broadband, Shutters Laurel.)

The question now is whether Motorola is the right partner for North America, a market ECI is desperate to break into to help broaden its broadband access customer base.

Currently, ECI has a formidable, but very limited, lineup of customers for its DSLAM equipment, and has been looking for ways to expand its access equipment user base for some time. Whereas a major competitor such as Alcatel-Lucent (NYSE: ALU) can point to almost any Tier 1 carrier as a customer for its DSLAM gear, ECI relies on three main customers: Chunghwa Telecom Co. Ltd. (NYSE: CHT), Deutsche Telekom AG (NYSE: DT), and Orange (NYSE: FTE). (See Alcatel, ECI Land DT Gig, ECI Makes Hay in Taiwan, Europe, and ECI Drops Despite VDSL2 Coup .)

These customer relationships point to strength in depth in ECI's technology, as all three carriers are using the vendor's Hi-FOCuS DSLAMs to support their rollouts of IPTV services, and each carrier has come back with repeat orders.

That's got to be a plus point for Motorola, as the new deal means it can rival major players such as Alcatel-Lucent and Ericsson AB (Nasdaq: ERIC) by pitching a straight DSL-based offering, or a combined fiber access and supporting DSL portfolio, into carrier RFPs.

Motorola's current strength is in its FTTx portfolio, but as more carriers opt to take fiber to the street cabinet or curb, and use installed copper to bridge the final few hundred meters, so Motorola needs DSL capabilities, particularly ADSL2+ and VDSL2, to offer a complete broadband access portfolio. (See Moto Gets a Piece of Verizon FTTP.)

— Ray Le Maistre, International News Editor, Light Reading

rjmcmahon 12/5/2012 | 3:10:36 PM
re: Moto to Resell ECI DSLAMs What are these service providers really thinking?

Economic deregulation of our industry is based on the FCC promoting the perception of facilities based competition. (Remember former FCC chair Powell hyping up BPL?) Qwest reselling DBS and AT&T promoting HDTV over copper is just more of the same BS.

Take away these distortions and the government then has to do some real work. Unfortunately they don't want to so instead we get these false promises.

Hope tied to the threads of delusion seems to mollify many. It's sad that our industry says almost nothing about it. Lack of math and science training may contribute to this ignorance, but it isn't the real problem, which is a lack of leadership backed by the power to make change.
Duh! 12/5/2012 | 3:10:36 PM
re: Moto to Resell ECI DSLAMs > Is HDTV over DSL an oxymoron?
No. Depends on reach and technology. VDSL2 in a FTTC or FTTB configuration plus bonding 50 to 70 Mb/s, a couple of MPEG4 (maybe MPEG2) program streams of HD, not really a problem. FTTN at 18-25 Mb/s, not so good, but still doable for one program.

> I know this has been discussed before, but it seems that cramming ever more HDTV channels and data channels over copper of any sort becomes a losing proposition over time.
In the end, yeah, it's a losing proposition, but in the end we're all dead. For the next 5 years or so, it's perfectly viable.

> What are these service providers really thinking?
Very simple. a) they did the business case analysis and FTTH for rehab didn't have the ROI profile they needed. b)too much of their plant is underground, and digging up streets didn't cut it for them, as in the European operator who has to involve an archaeologist every time they roll a backhoe c) their investment in recent copper rehabs hasn't been amortized d)the bond markets and e) not all of them have the as much cajones as Seidenberg, Wegleitner and Tobin.
materialgirl 12/5/2012 | 3:10:36 PM
re: Moto to Resell ECI DSLAMs Is HDTV over DSL an oxymoron? I know this has been discussed before, but it seems that cramming ever more HDTV channels and data channels over copper of any sort becomes a losing proposition over time. What are these service providers really thinking?
Michael Harris 12/5/2012 | 3:10:35 PM
re: Moto to Resell ECI DSLAMs That Moto concluded it needed a DSLAM solution is potentially telling about the actual depth and breadth of RBOC FTTH deployment plans.
paolo.franzoi 12/5/2012 | 3:10:35 PM
re: Moto to Resell ECI DSLAMs
Yep, LOTS of DSLAM RFPs out there. *crickets* Yep, this is a biggie. No, the problem is that Mot has one customer for FTTH and no business. They nuked Next Level and got the boot de grace out of Qwest because of it. Perhaps this is a last ditch attempt to save Saskatel?

Outside of that, nobody in North America needs yet another DSLAM.

seven
apac_fiber 12/5/2012 | 3:10:33 PM
re: Moto to Resell ECI DSLAMs Moto just brought few cpe companies now they need a DSLAM partner to compliment their B/GPON ONU
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