Neuf Says Bonjour to ADVA
ADVA landed the gig through its French partner Sagem SA, which provided the network management system and integration services. Sagem has so far installed 220 units of ADVA's FSP 2000 platform, which supports CWDM, DWDM, and TDM, along Neuf's 20,000 kilometer fiber network for intercity connections and to link central offices.
Further deployments are expected to continue during the coming 18 months.
ADVA wouldn't reveal the value of the deal, but industry market research into DWDM product pricing suggests that the net worth of the 220 units would be between $10 million and $20 million.
Neuf says it spent $200 million in 2004 building out its network, with Alcatel (NYSE: ALA; Paris: CGEP.PA), Cisco Systems Inc. (Nasdaq: CSCO), and Redback Networks Inc. (Nasdaq: RBAK) featuring as other key suppliers (see Neuf Telecom Plans TV Over DSL, Neuf Expands IPTV With Cisco, Neuf Picks Redback B-RAS, and Neuf Says Oui to Alcatel).
While the optical vendor was shy about Neuf's impact on its revenues, ADVA's chief marketing and strategy officer Brian McCann was less guarded about identifying other firms on the contract shortlist. He says ADVA saw off Alcatel, Cisco, Nortel Networks Ltd. (NYSE/Toronto: NT), and Huawei Technologies Co. Ltd., Neuf's key IP DSLAM provider (see Neuf: Time Is Right for IPTV).
Neuf's director of the operator's networks division, François Paulus, won't comment on any shortlist, but notes that Huawei is also an "active" WDM supplier. He says ADVA was chosen because of its leadership in the European market, the quality of its products, and its prices.
ADVA's McCann says talks with Neuf started back in 2002 when the carrier was still known as LDCom, and it was another year before the first sale was made. He also notes that video traffic is emerging as a major driver of increasing capacity requirements, and that Neuf's strategy of offering a triple-play combo of VOIP, video, and data has led it to deploy Gigabit Ethernet links throughout its network, and up to 10-Gbit/s links on some of its long-haul connections.
"We're seeing incumbents and competitive carriers move on this, and we have other video-related deployments -- IPTV and other types of video, such as videoconferencing -- in Europe now," says McCann, though he wouldn't name the specific carriers involved.
McCann is also chuffed about working with Sagem, as it shows the company has significant European partners other than its long-time best friend, Siemens Communications Group (see ADVA, Siemens Win at T-Com, ADVA, Siemens Extend Contract, and ADVA Earns Reseller Returns).
ADVA will report its fourth-quarter and full-year 2004 results on March 10.
— Ray Le Maistre, International News Editor, Light Reading