Colt Technology rolls out 100 Gigabit Ethernet via Infinera DTN
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Optical hardware sales shrink y-o-y for third straight quarter, says Ovum
Revenues for the optical networking systems segment retreated year-on-year for the third consecutive quarter in 3Q12, asserts market research firm Ovum. And optical transmission vendors shouldn’t count on the usual fourth quarter spending spree to make things right, add Ovum analysts.Weak macro-economic factors, particularly in Europe, have carriers leery about spending money to keep up with the continuing rise in bandwidth demands. These operators are “running networks hotter” in an effort to save money, Ovum analysts say.“Preliminary analysis of 3Q12 results offers little positive news,” explains Ron Kline, principal analyst, network infrastructure at Ovum. “The competitive environment is challenging at the moment. Many vendors are grateful just to see their business stay flat. It will be very difficult for the market to reach the 2% growth we have predicted for the year. Now is the time to position next-generation products with operators which will have no choice but to turn spending back on in 2013.”Ovum expects sales to pick up at least a bit in the final quarter of this year – but vendors who have suffered so far this year shouldn’t expect to get healthy all at once.“With three uninspiring quarters of 2012 behind us, we are advising our clients that the global market will likely contract into the $14.5–15.0 billion range, a further retrenchment from our 2Q alert guidance. A modest ‘budget flush’ factor is included in our revised estimate, but we are not anticipating a large-scale buying spree that would recoup all the ground lost in the three earlier soft quarters,” concludes Kline.Additionally, the market research firm expects the global economy to continue to be weak into 2013.
Sales in 3Q12 dropped 8% year-on-year in EMEA, Ovum reports. North American spending slipped 11%. South and Central America spending also declined 4% over the same quarter in 2011. The combined shortfall was enough to offset a 14% year-on-year increase in Asia-Pacific spending, leading the overall optical network systems sector to decline 1% compared with 3Q11 to $3.7 billion.Four vendors -- Ericsson, Fiberhome, Huawei, and NEC – escaped the 3Q12 carnage and reported both sequential and year-over-year revenue growth. However, Nokia Siemens Networks, Tellabs, and ZTE suffered sequential and year-over-year revenue declines. Meanwhile, Alcatel-Lucent’s saw its quarterly revenues slip below $400 million for the first time and its rolling revenues fall below $2 billion, which Ovum asserts is an all-time low.
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Colt Technology rolls out 100 Gigabit Ethernet via Infinera DTN
European computing and network services provider Colt Technology Services is now offering 100 Gigabit Ethernet (100GbE) services over its long-distance network using DTN platforms from provider Infinera (NASDAQ: INFN).Colt first deployed the Infinera DTN in 2009 (see “COLT selects Infinera for pan-European network”) and has used the system to provide a variety of services (see “Colt claims low latency of 4.22 ms between London to Frankfurt”). The service provider and Infinera have collaborated on bringing 100GbE services to Colt’s enterprise and wholesale customers for several years, including a 100GbE field trial in 2010.The new 100GbE services leverage Colt’s European infrastructure, which includes 20 carrier neutral data centers and its long distance network that links 39 metropolitan area networks. Colt’s network includes direct connections to 18,000 buildings across the continent.“As the company continues to transform from a traditional B2B telecoms operator to a provider of integrated IT and network services, enhancing our Ethernet services capabilities is key to delivering an end to end service experience that matches our customer’s agenda,” said Luke Broome, CTO at Colt. “Our use of the Infinera DTN to deliver 100GbE services on our long distance network will support customers with the highest performance demands in achieving their business priorities.”“Colt plays an integral role in providing critical network and IT services throughout Europe,” said Chris Champion, vice president, EMEA sales at Infinera. “We are pleased that Colt has chosen us to deliver high speed optical Ethernet services to their customers.”
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Dakota Carrier Network add 100 Gbps via Ciena
North Dakota’s Dakota Carrier Network (DCN) LLC has added the ability to transport coherent-based 40-Gbps and 100-Gbps wavelengths on its statewide fiber-optic backbone network. DCN deployed the 6500 Packet-Optical Platform from Ciena Corp. (NASDAQ: CIEN) to enable the new capabilities, according to the systems house.DCN, a collaboration among 15 independent rural telecommunications companies, serves more than 153,000 customers in 244 communities via 40,000 miles of fiber-optic cable. The service provider received approximately $10.8 million in grant money from the National Telecommunications and Information Administration’s (NTIA) Broadband Technology Opportunities Program to upgrade its fiber-optic network. DCN, which already was using 10-Gbps equipment from Ciena, has deployed the 6500 Packet-Optical Platform to create an 88-channel DWDM ring infrastructure. The 10G equipment also can be upgraded through the 6500 platform, Ciena adds.“DCN provides the foundation for much of North Dakota’s telecommunications infrastructure, and is thus a critical enabler of the state’s economic advancement,” said DCN’s general manager, Evan Hass. “With Ciena’s industry-leading 6500, we can provide our customers confidence that North Dakota has the communications infrastructure to support delivery of broadband-enabled services including healthcare, education, public safety, and long-term business growth.”“DCN is a great example of a regional service provider that is taking advantage of developments in packet-optical transport technology to help foster economic opportunity for its customers and local community,” according to Chad Whalen, vice president and general manager, North America field operations at Ciena. “Ciena’s coherent optical technology gives DCN a cost-effective and future-proof foundation to ensure its residential, commercial, and government customers have the connectivity required to be successful.”
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