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Optical/IP

Nortel Goes Gig-E With OPTera DX

DALLAS -- NFOEC -- Nortel Networks Corp. (NYSE/Toronto: NT), long giddy about Gigabit Ethernet in metro networks, led off the NFOEC tradeshow here by announcing Ethernet enhancements and new international customers for its OPTera Connect DX product.

Nortel is adding dual Gigabit Ethernet interfaces to the product, which will allow customers to provide 2-Gbit/s Ethernet connections into the switch, which can then send the Ethernet connections over longer-haul Sonet (Synchronous Optical NETwork) and SDH (Synchronous Digital Hierarchy) connections. More importantly, Nortel announced new customers planning to deploy the OPTera Connect DX, including Sunrise a competitive telecom carrier in Switzerland; China Telecom Hunan; and China Telecom Shoaxing (see Nortel to Build Chinese Backbones).

The technology enhancements were by no means earth-shattering; Nortel long ago announced plans to integrate Ethernet capabilities into all of its optical networking products. The Ethernet enhancements are targeted at carriers rolling out Ethernet services, enabling them to plug Gigabit Ethernet into a network running over DWDM or Sonet/SDH.

"You have to do Ethernet," says Mark Lutkowitz, vice president of optical networking research with Communications Industry Researchers Inc. (CIR). "But it's not pure Ethernet; it's Ethernet over Sonet." Concerning customers, it's hard to tell how much the deals will contribute in business terms, because Nortel did not disclose the financial terms of the agreement, nor did it say how many OPTera DX boxes would be involved.

With these deployments, Nortel claims that more than 6,000 OPTera Connect DX optical switches have been deployed worldwide. Depending on configuration, the box typically costs between $60,000 and $300,000, according to Nortel officials.

Tellingly, all of the customers were outside of the North American market. This follows the recent trend of most deals coming in Asian or European markets, where the downturn in telecom spending has not been as steep.

"By far the most interest is in Asia, particularly China and India," says Brian McFadden, president of optical networks with Nortel. "In Japan, there is also a lot of interest in metro." Nortel stock traded down today $0.05 (5.26%) to $0.90, in apparent sympathy with Lucent Technologies Inc. (NYSE: LU), which today traded to an all-time low of $1.07, down $0.19 (15.08%). Last week Lucent announced that it expected another revenue shortfall for the current quarter (see Lucent Drops Its Bottom).

--R. Scott Raynovich, Executive Editor, Light Reading http://www.lightreading.com
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lilgatsby 12/4/2012 | 9:46:06 PM
re: Nortel Goes Gig-E With OPTera DX Could anyone add to the comment that this is only Ethernet over Sonet? The tone of this analyst makes this sound like a bad thing.

lg
LightMan 12/4/2012 | 9:46:05 PM
re: Nortel Goes Gig-E With OPTera DX Guess he doesn't like the restorative capabilities... ;)
LegoAss 12/4/2012 | 9:46:03 PM
re: Nortel Goes Gig-E With OPTera DX Who cares what the ANALyst thinks? Did they not miss the boom and bust of the telecom industry?
MarauderNow 12/4/2012 | 9:46:03 PM
re: Nortel Goes Gig-E With OPTera DX It's Ethernet mapped by way of GFP into Sonet really...
Kangaroo 12/4/2012 | 9:46:01 PM
re: Nortel Goes Gig-E With OPTera DX Could anyone add to the comment that this is only
lg wrote...
Ethernet over Sonet? The tone of this analyst makes this sound like a bad thing.

lg
--------------------------------------------------
Essentially what Nortel are doing is;
IP over G-net over Sonet/SDH this is not as efficient as doing IP over G-net over a WDM Wavelength.

Kangaroo
Belzebutt 12/4/2012 | 9:45:59 PM
re: Nortel Goes Gig-E With OPTera DX The tone of this analyst makes this sound like a bad thing.

It's because he doesn't know what he's talking about. Ethernet over SONET is da bomb!
SiO2 12/4/2012 | 9:45:59 PM
re: Nortel Goes Gig-E With OPTera DX Kangaroo writes:

> Essentially what Nortel are
> doing is; IP over G-net over
> Sonet/SDH this is not as efficient
> as doing IP over G-net over a WDM
> Wavelength.

i understand the efficiency arguments
of ring versus mesh and POS versus
digital wrapper, respectively. but,
are there any RFI/RFPs for metro
ethernet services that call for
meshed ethernet?

most that i've seen want either
transparent LAN or pt-to-pt ethernet
over rings in the metro. whether
this is due simply to the inertia
of historical architectures or because
GMPLS deployment has been slow-rolled
might be worth a cycle or two.

SiO2

hitekeng 12/4/2012 | 9:45:58 PM
re: Nortel Goes Gig-E With OPTera DX "Ethernet over SONET?"
or
"IP over G-net over Sonet/SDH this is not as efficient as doing IP over G-net over a WDM Wavelength"
----
Ethernet over SONET is one of the best alternatives for leveraging the existing infrastructures at lowest CAPEX/OPEX possible while offering carrier grade services when compared to Ethernet out of an Ethernet switch. I am also inclined to think that GigE over SONET is more efficient that over DWDM. This especially true when tailoring SLAs to customers requirements by optionally mapping GigE to an STS3c, STS12c or an STS24c (all depending on required throughput) therefore providing much more flexibility for OADM and grooming as compared to DWDM. So again, Ethernet over SONET is a big winner if done right end to end....
giles0 12/4/2012 | 9:45:57 PM
re: Nortel Goes Gig-E With OPTera DX -----
Second, even Gig ethernet is not likely to provide an efficient 'fill' of a wavelength - which could easily be carrying a 2.5G, or 10G circuit. SDH/Sonet can carry multiple ethernets at once
-----

yes, but what will the 'fill' on those ethernets be? I'm guessing 10-20% on average.

Whereas if you use draft-martini to run multiple Ethernets over a fat packet pipe you can fill to 50% (or more if you have a mesh topology...)
spegru 12/4/2012 | 9:45:57 PM
re: Nortel Goes Gig-E With OPTera DX Ethernet on SDH/Sonet has some distinct advantages over ethernet on wavelengths.
First, The ethernet on SDH/Sonet allows connections to be switched though standard Telco equipment (likely already deployed) to provide connection from one side of the country/planet to the other.
Second, even Gig ethernet is not likely to provide an efficient 'fill' of a wavelength - which could easily be carrying a 2.5G, or 10G circuit. SDH/Sonet can carry multiple ethernets at once

spegru
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