SBC: ROADM Search Ain't Over
"RBC estimates this deal may be worth $500 million to $700 million over the next several years," Sue wrote. "Of this amount, we estimate the equipment win for Alcatel and its partner may be $300 million to $400 million… By partnering with privately held Tropic Networks Inc., Alcatel was able to provide a comprehensive solution, which includes a suite of ROADM products supporting 32 wavelengths."
SBC denies this is the case and said no ROADM decision has been made.
"We're looking for a vendor, and it's an ongoing process," an SBC spokesman tells Light Reading. "We don't have a contract in place right now."
The spokesman adds that the figures in the RBC report were "substantially overstated."
The Alcatel/Tropic connection isn't new, as Light Reading has reported that the two companies were on SBC's shortlist for a while. In fact, this ROADM RFP is the same one that is believed to have led to the demise of Photuris (see Photuris & SBC: The Inside Story and Mahi Nabs $70M, Photuris Assets).
Though no contract has been awarded, SBC is close to a decision and is primarily focusing on Alcatel/Tropic at this time, according to a source close to the proceedings.
Other ROADM RFPs -- from AT&T Corp. (NYSE: T) and Verizon Communications Inc. (NYSE: VZ), most notably -- are in circulation, but it's not clear how large those deals are. There is, however, enough carrier interest to cause several vendors -- including Movaz Networks Inc., Cisco Systems Inc. (Nasdaq: CSCO), and Meriton Networks Inc. -- to have coughed up all kinds of ROADM-related announcements at Supercomm (see Cisco, Meriton Join ROADM Gang and Supercomm: A ROADM Show?).
Tropic, interestingly, was all quiet at Supercomm has no announced customers to date. The company also declined to comment on this story.
— Phil Harvey, News Editor, Light Reading