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ONI's RBOC Customer: Qwest?

ONI Systems Inc.'s (Nasdaq: ONIS) mystery RBOC customer may actually be a customer it already knows quite well: Qwest Communications International Inc. (NYSE: Q). So say one industry analyst and another source close to both companies.

ONI already supplies other parts of the carrier's network (see Qwest Gets Cozier With ONI and ONI Wins Key Contract ). But Qwest's split personality may allow ONI to gain vaunted RBOC-accepted status at the company. Qwest operates both a cutting-edge greenfield fiber network and a regulated RBOC (regional Bell operating company) network it gained through the acquisition of US West. ONI is counting on the deployment and its recent progress in Osmine certification at Qwest to open doors for it with other incumbent carriers.

"The RBOCs have a long history of sharing technical knowledge and learning, regarding vendors and business models," says Peter Evans, ONI's VP of marketing.

Neither Qwest nor ONI will say specifically whether ONI's gear is carrying live traffic in the regulated portion of Qwest's network.

Last Thursday, ONI said that it had finished the first part of the Osmine certification process, thanks, in part, to some help from Qwest. The release quoted Augie Cruciotti, executive VP of Qwest's local networks, as saying that Qwest was rolling out new ONI equipment in its local network and that those installations were going smoothly.

During ONI's earnings conference call on Thursday, ONI CEO Hugh Martin said that ONI had four ILEC/PTT trials ongoing and it had equipment running live traffic on two Sonet rings in one RBOC account.

Some analysts guessed that the US West network is the new RBOC customer.

"We believe ONI’s first RBOC customer is US West, given ONI’s healthy relationship with Qwest," wrote Morgan Stanley Dean Witter & Co. analyst David Jackson, in a Friday afternoon note to clients.

Nineteen percent of ONI's revenues came from incumbent accounts during its fourth quarter of fiscal 2001, compared to six percent of its revenues in the third quarter.

Qwest expects capital spending in 2002 to be about $4 billion, about 80 percent of which will go to improving its local network infrastructure in the 14 Western states of the former US West territory (see Qwest Keeps Cutting).

— Phil Harvey, Senior Editor, Light Reading
http://www.lightreading.com
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Confucius 12/4/2012 | 10:57:40 PM
re: ONI's RBOC Customer: Qwest? You heard Scott. They delete posts "because they can." No sense getting worked up about it. They make no pretensions that this is an equal opportunity posting service. Do you want them to beat you over the head with the "yahoo board" warning again?
Gastroenterologist 12/4/2012 | 10:57:39 PM
re: ONI's RBOC Customer: Qwest? Would this be an OSMINE-free deployment into the regulated part of the network? I thought ONI has yet to be OSMNE-crtified.

And also, Scott, could you please stop arbitrarily scrapping people's postings? You seem to find it really amusing - many of us don't.
Scott Raynovich 12/4/2012 | 10:57:39 PM
re: ONI's RBOC Customer: Qwest? Yep, see, I knew there was a reason why "Editor" is part of my title.

"The capacity of human beings to bore one another seems to be vastly greater than that of any other animals."

--H.L. Mencken
Confucius 12/4/2012 | 10:57:38 PM
re: ONI's RBOC Customer: Qwest? And also, Scott, could you please stop arbitrarily scrapping people's postings? You seem to find it really amusing - many of us don't

Well, to be honest, if Scott wants to claim the title of editor of these boards, then he should do the whole job. It's the arbitrary and random nature of his "editing" that I find irksome. I'd be perfectly happy if he edited ALL the chaff and left only the wheat. Fact is, he has neither the time nor the inclination to do so. That's why his glib "that's why they call me editor" rings so hollow. He isn't editing. He's being capricious. "Because he can."
fiber_r_us 12/4/2012 | 10:57:37 PM
re: ONI's RBOC Customer: Qwest? "Its good to be King!"

Mel Brooks, History of the World, Part I, while shooting peasants in a mock skeet shooting contest.
let-there-be-light 12/4/2012 | 10:57:36 PM
re: ONI's RBOC Customer: Qwest? As the saying goes, "If an eagle is allowing you to ride on his back, don't tell him his armpit is smelling unless you are prepared to taste some nice long free-fall."
HiTekRedNeck 12/4/2012 | 10:57:35 PM
re: ONI's RBOC Customer: Qwest? I know a couple folks at ONI... they said they just completed OSMINE certification.... Only thing I could find on ONI site was dated Feb. 7, 2002 - hot off the press:

http://www.oni.com/index.jsp?n...
Regular Joe 12/4/2012 | 10:57:27 PM
re: ONI's RBOC Customer: Qwest? "During ONI's earnings conference call on Thursday, ONI CEO Hugh Martin said that ONI had four ILEC/PTT trials ongoing and it had equipment running live traffic on two Sonet rings in one RBOC account."

I was not aware ONI made any SONET equipment... am I confused?
let-there-be-light 12/4/2012 | 10:57:05 PM
re: ONI's RBOC Customer: Qwest? I believe ONI has integrated some SONET functionality into some of the cards that can plug into the WDM system. Seems pretty smart to me (maybe not the purist's approach, but folks are getting real practical these days)
jamesoid 12/4/2012 | 10:56:08 PM
re: ONI's RBOC Customer: Qwest? I looked up the word criticism and found only one of the five definitions with negative connotation. I am not an expert in optics. I am a technophile here to learn so that I can make educated decisions as to where to invest my hard earned money. I think that Light Reading is one of the best places to educate my self. However, when I read all the nattering, carping and just plain bitchy messages by people whom, by the content of their posts I assume are "in-the-know, Not only am I get clear understanding of the issues being discussed, but am otherwise being educated in the pettiness of "educated" people who compulsively protect their prejudices. Good study in human behavior but not very helpful toward my goal.
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