Lucent/Verizon DWDM Deal: When?

Lucent Technologies Inc. (NYSE: LU) has won a three-year deal to supply metro DWDM gear to Verizon Communications Inc. (NYSE: VZ). (See Lucent Provides Ring DWDM to Verizon.) The agreement, which has been brewing for a long time (see Tellabs Losing Its Edge?) calls for Lucent to equip Verizon central offices nationwide with its Metropolis EON platform, a 32-channel DWDM system designed to work with metro rings at data rates to 10 Gibt/s. Lucent says the gear will eliminate bottlenecks in Verizon's regional networks and that trials will begin in Philadelphia "later this spring."

Lucent won't divulge the value of the deal, except to say it's the largest win yet for the vendor's Metropolis EON platform. That doesn't say much: The only other publicly announced contract for the gear is a $4.8 million deal with Slovakia Telecom (see Lucent Weighs on the World). But sources says it's common knowledge the Verizon DWDM arrangement could mean hundreds of millions of dollars to Lucent. The question is: When will it happen?

Analysts say the introduction of Lucent gear into Verizon's network may be stymied by the ongoing telecom spending slowdown, which continues to include Verizon. Indeed, during its quarterly earnings report this morning, the carrier announced it will cut capex by at least $1 billion -- to a range of $14 billion to $15 billion for 2002 (see Verizon Posts Q1 Earnings).

"I see no major spending for any of the carriers this year," says Steve Kamman of CIBC World Markets. He and his colleagues have taken a hard line against optimism about trial wins. "It will come to pass, eventually. But there will be no rush to install anything that isn't absolutely necessary."

Others say that if Lucent winds up being disappointed in its Verizon win this year, it won't be the first time. "Lucent's won other contracts at Verizon that haven't panned out in the near term due to cuts," says another Wall Street analyst, who asked not to be named. "Verizon will ultimately spend, but it may take baby steps to get there."

Even Verizon concedes that in the best of times there may be a long gap before a chosen product makes it to the RBOC's network. "How long between an official selection announcement and deployment is anybody's guess," a spokesperson said last week. "There's a fair amount of lead time. With a network like ours, everything is extensively tested and retested. We don't take any chances."

— Mary Jander, Senior Editor, Light Reading
let-there-be-light 12/4/2012 | 10:32:40 PM
re: Lucent/Verizon DWDM Deal: When? OC-48 is not 10G
zweisel 12/4/2012 | 10:32:38 PM
re: Lucent/Verizon DWDM Deal: When? Thank you for your wisdom o' visionary one...
johnjohn 12/4/2012 | 10:32:35 PM
re: Lucent/Verizon DWDM Deal: When? Doesn't appear that Lucifers are interested in this news...see the lack of activity on the Lucent threads.

Has the spirit been broken at Lucent for good?
konaboy 12/4/2012 | 10:32:32 PM
re: Lucent/Verizon DWDM Deal: When? Is it the Chromatis stuff from Isreal [I thought LU dumped that product line last year]? Or is it homegrown LU product?

What's the technology? Fixed config filters like OpTerror Metro 5200 or is it based on a dynamic optical switch in each OADM node?

Mad Max 12/4/2012 | 10:32:27 PM
re: Lucent/Verizon DWDM Deal: When? The name "Metropolis" is from Chromatis... but not the product. The product is the revamped 40G, originally designed for AT&T long haul. It has been modified to offer 32 channel ring, 64 channel pt-to-pt, but offers no reconfigurable OADM. It uses 200GHz AWGs and has many EDFA options. Easily the best of the simple, low cost products out there.
ravimullapudi 12/4/2012 | 10:32:21 PM
re: Lucent/Verizon DWDM Deal: When? Just wondering how many metro areas would need 32 channel rings. I am hearing most systems vendors talking about sclable 4 and 8 channels.
sjd5 12/4/2012 | 10:32:18 PM
re: Lucent/Verizon DWDM Deal: When? This is a huge deal. This article being negative is baloney, no matter how you slice it.
obey_the_giant 12/4/2012 | 10:31:37 PM
re: Lucent/Verizon DWDM Deal: When? We have been hearing about this multi-million dollar savior of a deal for 7 months. And still nothing firm for deployment or quantities. Just how real is this box?

Don't worry, EON always will have Slovakia.

slingblade 12/4/2012 | 10:31:06 PM
re: Lucent/Verizon DWDM Deal: When? Please tell me that a first-gen Wavestar 40 OLS with a software fix is not what Russo is peddling to resuscitate my LU stock! a.k.a EON is still at 16 protected lambdas and OC48. Don't hold your breath for 32 lambdas and OC192. This platform is big, clunky and old.
Cypher 12/4/2012 | 10:31:04 PM
re: Lucent/Verizon DWDM Deal: When? This system has been redesigned. It's more than just a software fix. There have been hardware improvements as well. This system has been optimized for the metro. The engineering rules are completely different.
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