What the carrier's move to Gigabit PON might mean for Ciena and Tellabs
Verizon’s plans to adopt Gigabit PON (GPON) for its FTTP buildout pose sticky situations for incumbent vendors Ciena and Tellabs.
According to a recent report from Merrill Lynch, Verizon plans to adhere to the IPTV standard for advanced video services on its FTTP network. This plan may require new equipment to replace ATM-based systems from Tellabs and Ciena, the firm states.
But that’s only if they don’t react in time. Verizon doesn’t plan to upgrade for another nine to 12 months, giving the vendors ample opportunity to respond, according to Merrill.
They may look to form partnerships with start-ups. According to Merrill, the GPON gear Verizon requires is only available from start-ups. Tellabs’ gear supports the ATM-based BPON, and Verizon uses Ciena’s DN ATM switches from broadband aggregation.
“Verizon’s decision to move to GPON, plus potential interest from SBC, could motivate partnerships between large and small vendors since carriers are less likely to buy directly from the smaller vendors,” the Merrill report states. “Partnerships could range from a comprehensive OEM deal, to just collaboration on piece parts of the solution, such as the optical line terminal or optical network terminal. New players like Lucent and others could emerge.”
Lucent has said it has funded Bell Labs research on Ethernet PON. Lucent also has ties to a company called Amedia Networks, which makes Ethernet switches for FTTX/triple-play applications.
