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tojofay
tojofay
1/30/2014 | 11:27:34 AM
Re: ALU business model
Indeed. Where did Simona of GS go? 
rgrutza600
rgrutza600
1/29/2014 | 6:22:24 PM
Re: ALU business model
Infinera has 15 Tier One customers globally.
rgrutza600
rgrutza600
1/29/2014 | 6:18:35 PM
Re: ALU business model
Infinera acknowledged winning Level 3 business in their CC today although they did not say their name.  Highly interesting conference call.
TGIR2
TGIR2
1/24/2014 | 1:40:05 PM
Re: ALU business model
Sterling,  There is quite a difference in their current product vs the DTN however.  The DTN-X is a big iron solution which looks like it was developed for the Tier 1 customers.  You add bandwidth in 500G chunks.  ( I realize they have a pay as you go option but still ).  The DTN actually looked like a box developed for the other category.  They sold it to a rural cooperative in Georgia (a 4 county network) for example.  It's hard to see how they can be successful with the DTN-X without capturing some of the Tier 1s.  It certainly puts more pressure on them to get Level 3.
sterlingperrin
sterlingperrin
1/23/2014 | 2:48:32 PM
Re: ALU business model
As a back of the envelope analysis:

NA LH DWDM was about $900 million in 2012, of which $550 million (at most) would have gone to AT&T + Verizon. AT&T and Verizon capex combined in 2012 was about $35 billion which puts their LH DWDM spend at about 1.6% of capex (or lower). If you include regional DWDM spend as well, then the % ticks up a little.

Sterling
rgrutza600
rgrutza600
1/22/2014 | 6:52:04 PM
Re: ALU business model
RE:When you think about the percentage of North American capex contributed from AT&T and Verizon

 

It would be nice to have a breakout for how much of that cap ex goes towards long-haul.  It seems like it is an almost insignificant portion of their cap ex compared to wireless.  Level 3 spends $200 million/quarter with zero towards wireless, but their fiber network dwarfs VZ or T.
rgrutza600
rgrutza600
1/22/2014 | 6:46:14 PM
Re: ALU business model
Other people's money is always the best source of funding.  Thank you President Hollande and Karl Marx. <G>
peebee1
peebee1
1/22/2014 | 9:35:40 AM
Re: ALU business model
Surely ALU wouldnt be selling below cost, its far more likely Ciena has been ripping Verizon off for way too long!
sterlingperrin
sterlingperrin
1/22/2014 | 9:34:52 AM
Re: ALU business model
I can't confirm whether this is true or not, so just posting based on the published report. My first read was that this is a horrendous development for the future of Infinera. But then I started thinking about Infinera's history in the 10G market.

They actually rose to become the leading North American supplier of long haul DWDM equipment (very quickly) without ever having AT&T or Verizon as their customers. When you think about the percentage of North American capex contributed from AT&T and Verizon, it's pretty amazing that a supplier can go anywhere without these two. But Infinera did that.

On the ALU win itself (again, based on the published report), I am also surprised. Infinera has been courting Verizon for a long time and there was a history of collaboration between the Infinera and VZ technical teams. I did not see that collaboration occurring between ALU and VZ.

Sterling
chuckj
chuckj
1/22/2014 | 1:25:09 AM
Re: ALU business model
French subsidizing US infrastructure, that can't be a bad thing.
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