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Optical components

Kodeos Lands $6M

Kodeos Communications Inc. has picked up another $6 million in funding, giving the startup another year to chase an admittedly weak long-reach 10-Gbit/s market.

The money, an "extension" of a two-year-old Series A, comes from existing investors Highland Capital Partners and Jerusalem Venture Partners, the startup announced today. Kodeos's total funding sits at $22 million (see Kodeos Cops $12 Million and Kodeos Gets Kredit).

The extra money "will take us into the fourth quarter of 2004," says John Wyatt, Kodeos CEO.

Kodeos's expertise lies in signal processing. The idea -- commonly wielded in optics and electronics -- is to pre-distort a signal so that it will come out cleanly on the receiving end, ultimately cutting costs by removing the need for dispersion compensation or forward error correction. Using proprietary algorithms, Kodeos claims to be able to send 10-Gbit/s signals as far as 200 km (see Kodeos Claims 10-Gig Record).

Big Bear Networks is pursuing similar ideas, adding polarization mode dispersion (PMD) compensation to the mix (see Big Bear Promises Picnic).

So, given that both the long-haul and 10-Gbit/s markets are in a dry spell, when does the world start to need Kodeos? Jon Auerbach, a principal with Highland, admits Kodeos has been "a timing question" since its inception in 2001, but he still thinks the market will come around. "We have seen signs from the industry in the last six months that [carriers] are moving the way we thought they would," he says.

Moreover, Kodeos gives Highland a foothold in something a little different, albeit chancey, as opposed to the cluster of startups that will be vying for shorter-reach 10-Gbit/s business. "That's very commoditized already. You've got a lot of interest, but there's a lot of players there," Auerbach says.

Kodeos has managed to sample 120km and 150km transponders, but those are being shelved in favor of a 160km issue called the Kodeos Optical Modem 300, Wyatt says. The plan is to sample the KOM300 by the end of the year, with volume production possible in the second quarter of 2004.

"My expectation is a recovery in 2004. It might be the latter part of 04, but it will start to recover," Wyatt says.

— Craig Matsumoto, Senior Editor, Light Reading

fiber_r_us 12/4/2012 | 11:53:26 PM
re: Kodeos Lands $6M 200Km is not Long haul... more like some form of extended metro... This seems interesting purely for metro systems that wish to go between 100 and 200Km at 10G without having a pair of dispersion compensators somewhere. Of course, this approach would require that the set of chips for all wavelengths actually be cheaper than the dispersion compensation. Since, dispersion compesators can be had for around $5K (you need two of them), the total system cost for any number of wavelengths would be about $10K. So, for a 32-channel DWDM system (64 wavelengths), the chips could cost no more than $10K/64 or about $150 to make economic sense. Seems like a tough business to be selling chips at $150 each...
optiplayer 12/4/2012 | 11:53:25 PM
re: Kodeos Lands $6M
Its about first wave cost for metro DWDM systems (most of these systems will be deployed with < 4 waves and will grow slowly over time). Anything a vendor can do to lower the first wave cost will help so getting rid of DCMs is a benefit.

What's odd to me is that they would postition it as an alternative to FEC as FEC chips are really cheap today making them one of the more cost effective components in the transponder (when measuring cost vs. benefit). I can't see any vendor designing out FEC for some other signal processing technique.

inauniversefarfaraway 12/4/2012 | 11:53:23 PM
re: Kodeos Lands $6M
>Its about first wave cost for metro DWDM systems (most of these systems will be deployed with < 4 waves and will grow slowly over time). Anything a vendor can do to lower the first wave cost will help so getting rid of DCMs is a benefit.

> What's odd to me is that they would postition it as an alternative to FEC as FEC chips are really cheap today making them one of the more cost effective components in the transponder (when measuring cost vs. benefit). I can't see any vendor designing out FEC for some other signal processing technique.

optiplayer,

Are you aware if the FEC chips you mention work as advertised? G.709 has a big loophole for companies whose FEC hardware doesn't actually work.

JDS produced vast quantities of DWDW hardware that also didn't work. When they were shipping masses of stuff, and were heralded as bringing about the optical age, very little of that stuff actually worked. Lots of components came back.

This is what is choking the optical industry as a whole, stuff that doesn't work.

The euphemism most often used is that production didn't "scale".

iauffa
blips 12/4/2012 | 11:53:22 PM
re: Kodeos Lands $6M Do they sell chips or transceivers? Thought it was just the latter, but don't really know...
optiplayer 12/4/2012 | 11:53:21 PM
re: Kodeos Lands $6M
I'm familiar with numerous FEC and enhanced FEC chips that work just fine and are cheap...
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