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Infinera Sweeps MSOs, Looks Abroad

Infinera Corp. (Nasdaq: INFN) has kicked off 2009 with a reminder of its success in the U.S. cable market, a prediction of renewed customer base growth, confidence about its potential for prolonged technical superiority in the optical market, and an eye on international markets.

Cramming a serious amount of marketing information into his timeslot at the Annual Needham & Co. Growth Stock Conference Tuesday morning, the vendor's CEO, Jagdeep Singh, noted that of the 49 customers Infinera boasted at the end of the third quarter 2008, five were the leading cable operators in the U.S.

Only Cox Communications Inc. has been officially announced as a customer, though of the other four Singh noted, "You know who they are." (See Cox Builds a Backbone .)

Well, by our reckoning, that would make Cablevision Systems Corp. (NYSE: CVC), Charter Communications Inc. , Comcast Corp. (Nasdaq: CMCSA, CMCSK), and Time Warner Cable Inc. (NYSE: TWC) the unannounced quartet.

Where the long-haul optical equipment company, which has had particular success with Tier 2 and Tier 3 players as well as MSOs, wants to make greater headway now is in Tier 1 accounts (anywhere in the world), while also building up its presence in Europe and Asia/Pacific -- currently, 32 of its 49 customers are in the Americas, while 12 are in EMEA (Europe, Middle East, and Africa), and five are in Asia/Pacific. (See Time to Make Tier 2/3 Operators a Priority.)

On Monday, Japanese operator Global Access Ltd. announced that it and Infinera had "successfully concluded Japan’s first 100 Gigabit Ethernet (GbE) demonstration involving 100 GbE traffic sent over a live network between Tokyo and Osaka, a round trip of about 1,200 km." (See Global Access Demos 100GigE.)

The CEO also identified the North American metro market, estimated to be worth nearly $1 billion in 2008, as a target, but didn't elaborate on when Infinera will have the relevant product set to attack that particular segment. It surely can't be long until the metro strategy is unveiled, though. (See Metro Move for Infinera?)

In the meantime, the vendor continues to add new long-haul accounts, though competition is intensifying. (See Huawei Gains Optical Ground in North America.)

Singh noted that his company had added five new customers during the third quarter of 2008, and that "we expect that trend to continue."

It's the Tier 1 telco deals that appear elusive currently: Infinera's customer list includes just one, Deutsche Telekom AG (NYSE: DT). (See Infinera Wins DT, Loses the Day.)

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ninjaturtle 12/5/2012 | 4:14:56 PM
re: Infinera Sweeps MSOs, Looks Abroad Jagdeep, per his usual modest self was humbled to also mention that in addition to $300M and 4 years to develop a PIC type based optical system, talent is also part of that equation. Most of that resides within the walls of INFN. That will eventually be the stumbling block for most potential competitors.
digits 12/5/2012 | 4:14:55 PM
re: Infinera Sweeps MSOs, Looks Abroad Yes, a good point.

But the thing about 'talent' is that everyone has their price -- maybe the talent won't stay within Infinera's walls for ever....

Ray
glasstotheass 12/5/2012 | 4:14:51 PM
re: Infinera Sweeps MSOs, Looks Abroad Infinera seems in a pretty good place right now. In this economy, would you leave a company with upward momentum to a startup?

P.S. Kudos to the Infinera guys to get this very difficult product working.
bollocks187 12/5/2012 | 4:14:49 PM
re: Infinera Sweeps MSOs, Looks Abroad Infinera has a highe ned box that costs a lot and it as a compnay doeas not understand the metro. THE PIC is overdesigned for metro. They are going aborad casue they dont have any cusotmers that want to buy the product.

Niche high end, overdesigned product that WILL not scale down. They all know it even the smart ones inside.
bollocks187 12/5/2012 | 4:14:44 PM
re: Infinera Sweeps MSOs, Looks Abroad Not really

But I have an opinion versus you with nothing to contribute - one of the back seat engineers at Infinera - lol
ninjaturtle 12/5/2012 | 4:14:44 PM
re: Infinera Sweeps MSOs, Looks Abroad Thnaks for your inpt...spell much!!!!
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