Last Call

6:20 PM -- A few things you should see before heading out for your fantasy NFL pre-draft meetings:
  1. Verizon: Link Hoewing's legs must be tired. He just spent 660 words dancing around the issue of whether Verizon is in favor of usage-based caps, like the ones other providers have tested in Beaumont, Texas. He concludes, sort of, that "these trials [are] a part of the continuing evolution of the broadband market." That's his unofficial non-committal opinion. Is this an early indicator that Verizon might back off from the stiff jab we highlighted yesterday?

  2. Junkets: The Oklahoma City Telephone Association is having its annual summer meeting in Myrtle Beach, S.C., which has more beaches and better golf than, say, Ada.

  3. Corrections, Clarifications: Zhone got a few things wrong in its public filing with the National Telecommunications and Information Administration (NTIA) earlier this month. We reprinted the original table here, as part of the context of the news story. We'd like to present a slightly more correct version right here, with our corrections noted in bold:

    Table 1: Are They Located in the U.S.?
    Vendors Headquarters Engineering Manufacturing
    CommScope Yes Yes Yes
    Corning Yes Yes Yes
    Huber+Suhner No No No
    Adtran Yes Partial Yes
    Alcatel-Lucent No Yes, partially. Mostly. Well, an awful lot, anyway. No
    Calix Yes Yes Partial
    Motorola Yes Partial No
    Occam Yes Yes Partial
    Tellabs Yes Partial No
    Zhone Yes Yes Yes
    ZyXEL No No No
    Sources: Zhone, Adtran, Alcatel-Lucent, Tellabs, Calix, and Occam.

    If we still haven't got it right, do tell in the boards below.

— Phil Harvey, Editor-in-Chief, Light Reading

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DCITDave 12/5/2012 | 4:06:16 PM
re: Last Call

good point. i fixt it.

see the trouble with these yes/no charts?

paolo.franzoi 12/5/2012 | 4:06:16 PM
re: Last Call


Has relocated 100% of its engineering to the US and has fired all non-US engineering employees?

That is BIG news.



paolo.franzoi 12/5/2012 | 4:06:15 PM
re: Last Call


Yeah, I know you did not make it.  In fact, I suspect most of these companies could put "partial" down for manufacture.  It is normal for low volume or new or complicated products to be started in US portions of the large CMs and then pushed offshore as volumes ramp and the product stabalizes.  Also, most large companies have offshore development.  Finally, much Intellectual Property is purchased now a days including operating systems and software stacks (amongst many things).  A lot of that is purchased from offshore entities.  Interesting that this is not considered as part of the Buy American.



paolo.franzoi 12/5/2012 | 4:06:13 PM
re: Last Call


Can I define myself as partially alien based on the origin of life theory (well one of them anyway) that life has at least a partial origin in space (potentially on Mars for example)?





DCITDave 12/5/2012 | 4:06:13 PM
re: Last Call Good points. I tried to stay true to Zhone's mindset, which was probably to ignore stuff like circuit boards and other miscellany. Otherwise, yes, most companies for most products are "partially" foreign. Say, we're all partially foreign, aren't we?
DCITDave 12/5/2012 | 4:06:11 PM
re: Last Call ALU chimed in via email and said that "partial" doesn't do justice to the breadth of engineering work they do in the U.S., so I've adjusted the chart again. Did I mention my head hurts?
DCITDave 12/5/2012 | 4:06:11 PM
re: Last Call my head hurts.
OldPOTS 12/5/2012 | 4:06:07 PM
re: Last Call

ALU does a lot of engineering and manufacturing in Canada. Does that count as (North) American?

Just exploding your mind.



sglapa 12/5/2012 | 4:06:06 PM
re: Last Call Phil -- sorry 'bout your headache. Just a quick word in response to your "Zhone got a few things wrong" line. As a minor point, we were repeating information from industry analysts who follow the space closely, who were given due credit in the original NTIA submission, and one of whose comments began with the summary, "virtually all the [broadband] manufacturers actually build outside the US." I'll let you conclude what you will about the different perspectives offered by vendors to industry analysts in one setting and those offered in this one.

The more important points are (1) as you've seen, simplifying global development and supply chains down to binary -- or even three-state (yes/no/partial) -- variables does not provide enough information to indicate the degree to which selection of any given source of equipment would yield more American job creation than another. This is a good illustration of why we argued in our NTIA submission for credible, verifiable metrics for American labor content in the projects, rather than blind, wholesale application of the GǣBuy AmericanGǥ stipulation. [A reminder to those engaging here in a lively debate over the economic philosophy and trade policy concepts at play in this context: the time for that debate passed when the ARRA was signed into law in February. It states on page 1 that its primary intent is to sustain and create American jobs. The question now is *how* to best fulfill the ARRAGs statutory intent, not *if*.]

And (2) our troublesome table was assembled to demonstrate in simple terms that without due consideration of an American labor content metric in the broadband programs, a material quantity of ARRA funds could go (unnecessarily) to support incremental volume in factories outside the US. The corrected version of the table above appears to continue making exactly the same point.

Thanks for all the clarification work.

Steven Glapa
VP of Product Management & Marketing
Zhone Technologies, Inc.
DCITDave 12/5/2012 | 4:06:05 PM
re: Last Call

wow. harsh.

re: "Nice Q1 by the way."

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