Rumor du jour:

Sycamore Networks Inc. (Nasdaq: SCMR) is working on a big deal with Japan’s NTT Corp. that could come to fruition in the next few weeks.

This information comes from a previously reliable source, although at press time it wasn't clear whether the source is a Sycamore shareholder or not. Sycamore itself declines to comment.

If the rumor proves to be true, it would give Sycamore a much needed boost. Some of its other contracts, notably with Williams Communications Group (NYSE: WCG) and 360networks Inc. (Nasdaq: TSIX; Toronto: TSX.TO), appear to be going sour (see Sycamore Drops a Bomb).

Industry observers are skeptical about the rumor, pointing out that Sycamore has had more success selling equipment to startup carriers laying new fiber and not using Sonet/SDH, like Sweden's Utfors. NTT is likely to be at the opposite end of the scale, with massive amounts of older fiber and existing SDH infrastructure.

-- Peter Heywood, International Editor, Light Reading http://www.lightreading.com