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Optical/IP

SBC: ROADM Search Ain't Over

SBC Communications Inc. (NYSE: SBC) says it hasn't yet awarded a contract in its ongoing hunt for an ROADM (reconfigurable optical add/drop multiplexer) vendor. The revelation comes after RBC Capital Markets analyst Mark Sue wrote in a report earlier this week that the carrier would shortly announce that Alcatel SA (NYSE: ALA; Paris: CGEP:PA) had won the deal for a metro optical buildout that will initially involve DWDM, but will "utilize ROADM technology."

"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

ecipo 12/5/2012 | 1:28:16 AM
re: SBC: ROADM Search Ain't Over Found this interesting article:
http://www.x-changemag.com/art...

Is Alcatel 1671 product taking part in this RFP? Can this unnamed major carrier be SBC?

My question may seem stupid to some of you but i'm not an engineer but just an investor having a look at the telecom equipment vendors.
MrLight 12/5/2012 | 1:27:48 AM
re: SBC: ROADM Search Ain't Over In regards to:

"Is Alcatel 1671 product taking part in this RFP? Can this unnamed major carrier be SBC?"

NO!

See http://www.alcatel.com/doctype... , you will see no DWDM wavelengths.

MrLight
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