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Optical/IP

Report: Fujitsu Wins Verizon RFP

Fujitsu Network Communications Inc. has won the job to supply Verizon Communications Inc. (NYSE: VZ) with packet optical gear, according to one analyst's report.

Fujitsu's Flashwave 9500 beat out the Alcatel-Lucent (NYSE: ALU) 1850 Transport Services Switch and the Nortel Networks Ltd. Optical Multiservice Edge 6500 for the honor, Simon Leopold of Morgan Keegan & Company Inc. wrote in a note issued today.

Verizon officials could not be reached before press time, and Fujitsu declined to comment on the matter.

The win would be no particular surprise, given that analysts were picking Fujitsu as the front-runner. (See Fujitsu Leads in Verizon RFP.)

In fact, Fujitsu designed the Flashwave 9500 to match Verzion's requirements, including Ethernet functionality, according to Heavy Reading analyst Sterling Perrin.

Alcatel-Lucent leads the optical equipment market in sales, but this loss would still be a blow to the company, Leopold believes. "We think Alcatel-Lucent is losing ground at the former Lucent's top customer Verizon," he writes.

He adds that Verizon's decision might be a sign that some U.S. optical customers are turning away from the merged Alcatel-Lucent, which discontinued some of Lucent's product lines. Alcatel-Lucent declined to comment on that statement. (See AlcaLu Makes Product Cuts .)

Verizon's request for proposals (RFP) was asking for gear to deploy alongside the Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA) 7100 Optical Transport System. Fujitsu, if it's truly won, becomes a second source, with Tellabs remaining Verizon's primary vendor for reconfigurable optical add-drop multiplexers (ROADMs).

But Tellabs is going to have to invest further in the 7100 to add the carrier Ethernet features that Verizon wants, Leopold writes.

Packet optical gear, combining Sonet/SDH transmission and wavelength switching with carrier Ethernet, is a hot ticket these days. Perrin has said 2008 should be the year that packet optical transport systems -- or whatever you want to call them -- start blossoming as a market. (See Packet Optical Market Set to Explode and AT&T, Verizon Have Optical Wishes.)

— Craig Matsumoto, West Coast Editor, Light Reading

skelvin273 12/5/2012 | 3:50:11 PM
re: Report: Fujitsu Wins Verizon RFP This artical is incorrect Fujitsu didn't win or at lease solely. Either way there is nothing offical.
gocowboys 12/5/2012 | 3:50:14 PM
re: Report: Fujitsu Wins Verizon RFP Who is wrong? What information is wrong?

NeuronHammer 12/5/2012 | 3:50:15 PM
re: Report: Fujitsu Wins Verizon RFP My best guess is that ALU sacked their long announced Acuity/UPM-system developments (see http://www.lightreading.com/do...
"Lucent Focuses on Acuity") due to merging/firing and therefore only could offer the "old" 1850 Transport Services Switch as stated in the Fujitsu/Verizon article.
heretoday 12/5/2012 | 3:50:15 PM
re: Report: Fujitsu Wins Verizon RFP You would be wrong....and so is your information.

Stay tuned.
patrusso 12/5/2012 | 3:50:16 PM
re: Report: Fujitsu Wins Verizon RFP Dont you get it? I want to bring our new ALU stock down to my previous Lucent levels of around $1.00 per share...........I have kept all of my Lucent managers to run North America, so it should not be long now, Merci Serge...........UPMC switch to netgear ASAP. luv Pat............
gocowboys 12/5/2012 | 3:50:16 PM
re: Report: Fujitsu Wins Verizon RFP According to my information, the top two finalists were Ciena and Fujitsu. Fujitsu was almost the winner last time around and there was a falling out at the end that led to awarding the business to Tellabs.

ALU was pushing a combination of the 1850 with Lucent photonics. I heard that they were investing significant resources to go after this business.
NeuronHammer 12/5/2012 | 3:50:17 PM
re: Report: Fujitsu Wins Verizon RFP Does anyone really wonder, why this company was finally eliminated from Verizon's list of suppliers for new systems ? I don't.
Riverhigh 12/5/2012 | 3:50:18 PM
re: Report: Fujitsu Wins Verizon RFP Anyone know who is the ROADM component /subsystem supplier for the Fujitsu's Flashwave 9500? Would it be JDSU?
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