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Calix Goes for 1-Gig ONTs

Calix Inc. (NYSE: CALX) has begun deploying an upgraded version of its 700-Series ONT. (See Calix Upgrades ONT.) The new 700G ONT is capable of delivering 1 Gbit/s to individual homes at a cost that is just $15 more per unit, Calix says.

Average sustained bandwidth however is around 80 Mbit/s on a standard 32-split GPON network, so no one will need Calix's souped-up capability for quite some time. Calix compares this to the yet to be deployed Docsis 3.0, which is capable of 160 Mbit/s but will likely deliver 640 kilobits per second if used on a standard 250-home node.

The new ONT is largely the same as its 700-Series predecessor. Physically it contains one extra port inside, specifically for the 1-Gbit/s Ethernet connection, should consumers ever be lucky enough to get their own dedicated bandwidth firehoses.

Calix VP of marketing Kevin Walsh notes that the incremental cost change from the old 700 ONT to the new 700G ONT is about $15. Because of this, he feels it’s a no brainer for telcos to deploy it.

"If we gave them the choice between the two models and said that for $15 extra you get all this extra bandwidth and don't have to touch the customer's home for years, why wouldn't they do that?" he asks rhetorically. [Ed. note: Because they'll never need it?]

While Calix is proud of its new ONT, its competitors weren't impressed. "Welcome to 2006," said Russ Sharer, VP of marketing for Occam Networks Inc. (Nasdaq: OCNW). "The delivery of a gig into businesses and homes is something we've been doing for a year."

But compared to what cable is offering, Calix is positioning telcos to stay ahead. "Docsis 3.0 will help cable, but they won't be able to match telco speeds," says Alan Breznick, senior analyst with Heavy Reading. Breznick notes that cable companies have been investigating ways to further close the gap, such as moving to all fiber.

"They're doing this in bits and pieces like in greenfields, but they're not doing it widespread just yet," says Breznick.

Separately, Calix noted a customer for the new 700G ONT -- Bloomer Telephone, a Wisconsin-based carrier. Calix also announced today that it has just shipped its 200,000th GPON ONT. (See Calix Ships 200,000 ONTs.)

— Raymond McConville, Reporter, Light Reading

bollocks187 12/5/2012 | 3:02:04 PM
re: Calix Goes for 1-Gig ONTs
Russ (occam) is right they have been shipping 1G ONU for quite some time. The product is/was an OEM from a startup in Minesotta. It is a direct 1G play to the Home versus PON.

Calix shipping 200K GPON ONU it would be really interesting to see how valid this statement actually is - Dell may want to really dig deep and check this out or its own credibility will be at stake.

Calix - Walsh marketing spin quoting $15 is a result of the old Calix(via acquisition) technology (it was far too expensive in the first place). If you compare a NEW 1G ONU and NEW 100Mbps ONU the cost difference is >> $15 at the BOM level.

abashford 12/5/2012 | 3:02:01 PM
re: Calix Goes for 1-Gig ONTs If you have cable service, you may have noticed that you are already capable of getting >> 1Mbps with deployments that are not even DOCSIS 3.0. The move to DOCSIS 3.0 will allow for users to get 10's of Mbps of burst, the 640 kbps would be the peak rate assuming that everyone is bursting at the same time (which does not happen).
Jeff Baumgartner 12/5/2012 | 3:02:00 PM
re: Calix Goes for 1-Gig ONTs That number is pretty close to some estimates CableLabs made in its famous (infamous?) "Cable Response Alternatives to FTTP" report in 2006. Based on an established two-year trend, they said by 2010 one downstream CMTS port will be required per 58 cable modems, and one upstream CMTS port will be needed per 89 cable modems to maintain the same 60% utilization rate for 95% of the sampling interval. The ratio of CM per CMTS port worked out to an average deployed capacity of 86 Kbps and 22 Kbps (downstram and upstream) of available capacity to each CM in 2006..and extrapolates to 628 Kbps (down)and 81 Kbps (up) by 2010.
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