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Optical/IP

TelecomNext: Notebook Nuggets

Juniper marketing maven
Juniper Networks Inc. (NYSE: JNPR) still doesn't have a VP of marketing per se, but it's filled out more of the marketing team. Shailesh Shukla, former strategy VP at Redback Networks Inc. , has joined Juniper as of Monday and was hanging around the Juniper booth at the show. Shukla reports to chief marketing officer Jeff Lindholm. Juniper staffers didn't have much more comment, but they'd only learned about Shukla's hire about 24 hours earlier.

Lucent's poker face
How did Riverstone Networks Inc. (OTC: RSTN.PK) get $207 million out of Lucent Technologies Inc. (NYSE: LU)? Part of it was the creation of buzz. One source says the bankers involved in the deal called repeatedly to push Riverstone. They also called multiple execs, touching off a cavalcade of panicked calls between higher-ups and lower-downs, all asking, "Should we be in on this?" We'll see, but it's apparent that Riverstone's troubles helped keep the price tag down. We're as surprised as anyone at the $207 million tag, but maybe Lucent got off easy.

Ciena cuts
For some reason, we didn't get pre-briefed on this one. Ciena announced Tuesday the closing of its Shrewsbury, N.J., facility, effective April 29. A spokeswoman says it's all part of Ciena's move to make all R&D centers work on particular technologies rather than particular products, as different boxes like the CN 4200 and the CoreDirector are starting to share some functions. No product development is being affected by the change.

Ciena's press release says Shrewsbury employs 114. The closure "is expected to result in a headcount reduction of 62 employees" -- layoffs, we presume -- with another 27 being offered relocation. The remaining 25... sit around inside the closed Shrewsbury facility? We're not sure.

The Shrewsbury site worked on metro transport and aggregation, the spokeswoman says. Its R&D and sales work will be moved to other places including "alternate remote locations" (so, OK, maybe home workers account for some of the 25). Its operational responsibilities will be moved to Ciena's headquarters in Linthicum, Md., where Ciena's CoreStream product is developed.

More Ethernet madness
Hatteras Networks Inc. revealed at the show that XO Communications Inc. is using its gear to deliver Ethernet services via bonded copper pair to small and mid-sized businesses in the more than 60 metropolitan markets XO serves. (See XO, MTS Pick Hatteras.)

That's a big deal for Hatteras and it reiterates the vendor's stance that any small- to mid-sized business not served by fiber is fair game for carriers to capture before the cable MSOs wake up and take the market over. (See Report: Enterprise Market Ripe for Cable.)

This comes on the heels of the vendor's headway in another copper-fed niche, the wireless backhaul space, where Hatteras revealed that Manitoba Telecom Services Inc. has deployed its HN4000 devices to boost the bandwidth going to its copper-fed cell towers. Hatteras execs say less than 4 percent of the existing 175,000 cell towers in the U.S. are served with fiber transport, so that opens a huge door for their gear -- or at least a viable alternative to fixed wireless or DSL backhaul kits. (See Hatteras Goes Mobile.)

There was also a bit of speed braggadocio from Hatteras at the show; the company says its HN4000 can now shove 200 Mbit/s down a set of 40 copper pairs. Kind of an odd boast given that the company's sweetspot is delivering services at speeds of between 2 Mbit/s and 20 Mbit/s -- where you need more than a T1, but less than a T3, and you don't want to lay new fiber. (See Hatteras Claims 200 Mbit/s.)

"This space is confused, with a lot of vendors showing how they can get 5 or 10 percent more bandwidth per pipe," says Hatteras VP of marketing Gary Bolton. "We wanted to just say we can provide high bandwidth, too."

GPONtifications
Entrisphere Inc. announced its GPON platform at the show, which came as no surprise whatsoever. (See Entrisphere Goes GPON.) The company maintains, after all, that it is targeting the top 25 carriers in the U.S., so the real surprise would have been if it announced it was getting into ISDN equipment. Which it isn't. But still…

Entrisphere did, however, use its slick show presence to reiterate that GPON's economic advantage over BPON is becoming clearer to carriers as they look to move on to the faster IP-based technology. (See RBOCs Aim for 10M GPON Subs.) Entrisphere's marketing VP Don McCullough says the company is using the same OLT that it employs to serve BPON and ADSL2+, "but the density has gone way up."

"We think we can deliver at or below BPON pricing" in a GPON system, McCullough says.

The company also introduced its BLM T151 and BLM T300 ONTs at the show: The first device is aimed at serving small- to mid-sized businesses via fiber, and the latter is targeted toward smaller multi-dwelling units, like duplexes. Also added to Entrisphere's roster was the BLM T500 and BLM T550 ONUs, a new series of premises equipment that's aimed at fiber-to-the-curb and fiber-to-the-node deployments.

After the show, McCullough was spotted hopping a plane to Dallas for a customer meeting. As this article posts, he could be enjoying a marathon meeting. But it might also be a sprint meeting.

— Craig Matsumoto, Senior Editor, Phil Harvey, News Editor, and R. Scott Raynovich, Editor in Chief, Light Reading

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Mark Sebastyn 12/5/2012 | 4:00:33 AM
re: TelecomNext: Notebook Nuggets Hatteras better hope they start selling to Verizon rather than XO, because it looks like those copper pairs from the prem to the CO that XO leases from big Telco are going up in price.

PS Love the Taco Bell Quote.
DCITDave 12/5/2012 | 4:00:32 AM
re: TelecomNext: Notebook Nuggets So you think UNE-P will crush the copper bonders?

ph
o-man 12/5/2012 | 4:00:32 AM
re: TelecomNext: Notebook Nuggets Nice play on words...

you knead to do that more often
aswath 12/5/2012 | 4:00:31 AM
re: TelecomNext: Notebook Nuggets I agree Net/Taco Bell Neutrality make equal amount of sense. Except, the transposition of Net Neutrality to Taco Bell is TB demanding a hungry customer to pay more because it satisfy them more. Just as they charge by the amount of beans I want, let the carriers charge by the amount of bandwidth I consume. Let them also charge for QoS, if I am ready to pay for it. But they should not be allowed to look into my apllication and how useful it is for me.
rjmcmahon 12/5/2012 | 4:00:30 AM
re: TelecomNext: Notebook Nuggets On the topic of grocery store neutrality are slotting allowances. It may turn out that such policies actually drives those with market power to manufacture scarcity which in turn limits new offerings. (In speech, it may actually shut out dissent.)

http://econweb.tamu.edu/worksh...

Slotting allowances are lump-sum payments that manufacturers make to retailers for shelf space. They have become increasingly widespread in recent years, particularly in the grocery industry. A popular view is that these payments are a consequence of there being more products than can be profitably carried given the availability of shelf space. Under this view, slotting allowances arise because of the scarcity of shelf space. In this paper, we show that the causality can also go the other way. The scarcity of shelf space may in part be due to slotting allowances. This has policy implications. Since fewer products can be stocked when shelf space is scarce, it follows that slotting allowances may be anticompetitive even when their effect on retail prices is ambiguous.
Mark Sebastyn 12/5/2012 | 4:00:29 AM
re: TelecomNext: Notebook Nuggets Phil:

UNE-P was rolled back for consumers, and it looks like the FCC wants allow the same for business connections. You had a good article recently on this.

http://www.lightreading.com/do...

Though I think the ruling applies to the UNE-P links, not the backhaul infrastructure as the articel states.

What happens to CLECs when their free ride (not free, but govt. price controlled) on others infrastructure ends? Bonding or no bonding, they will be left at a structural cost disadvantage to the Telcos.

http://www.nyquistcapital.com/...

Note - regulation is not my strong point.
paolo.franzoi 12/5/2012 | 4:00:27 AM
re: TelecomNext: Notebook Nuggets
Leased copper is UNE-L not UNE-P. UNE-P was the ability to lease copper and the switch connected to the copper.

seven
dholly 12/5/2012 | 4:00:10 AM
re: TelecomNext: Notebook Nuggets Did anybody ask Hatteras at what distance they were doing 200m/bs, or did they state their distance.
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