NGN
VENTURES: MCQUILLAN’S
OVERVIEW
Speaking
at this week’s Next Generation Network Ventures conference in
Burlingame, California, Dr. John McQuillan postulated that
economic downturns favor upstarts and that watching the top
venture-backed newcomers is the best way to gauge the future of
the networking industry. Nevertheless,
with slower network growth ahead and the reality of the capital
markets, McQuillan warned that a fundamental mistake is to think
that bigger, faster, smarter equipment will solve the problem of
how to make money on the Net.
He divides networking start-ups into two camps:
those developing disruptive technologies, like tunable
lasers, Gigabit Ethernet for public networking, and photonic
cross-connects and those pursuing sustaining innovations, like
network processors, next generation SONET, core routing and MPLS
switches. Given the
reality that network rollouts are now being funded by the
established carriers, McQuillan argues that the current economic
climate favors start-ups with sustaining innovations.
By the time the next economic cycle begins, McQuillan
predicts some disruptive innovators will find a new window of
opportunity. His
observation: the Renaissance occurred as feudalism collapsed
across Europe… and after a third of the population had
succumbed to the Black Plague.
April
17, 2001
NGN
VENTURES: THE
LATEST IN LASERS
Compared
to the semiconductor industry, the Optical components business
is still in the “pre-transistor” era and the age of optical
networking is just getting started, according to Dr. Rick Gold,
CEO of Genoa. His company is working on a single-chip, linear
optical amplifier that could replace the bulky, expensive EDFA
amplifiers of today. Genoa's single chip linear optical
amplifier (LOA) is expected to be about 100-times smaller than a
typical EDFA-type
optical amplifier and will be built using Indium
Phosphide technology.
The
photonics industry is currently moving at Moore’s Law Squared,
according to Eran Yarkoni, President of CyOptics, delivering a
4X bandwidth capacity increase every 18 months.
CyOptics is developing Indium Phosphide active
components for 40 Gbps, the next step-up in modulation rates.
The Indium Phosphide fabrication process makes it
possible far smaller packaging and much lower costs.
DWDM systems driven by tunable
lasers provide both economic and strategic advantages over
today’s fixed wavelength systems, said Hatch Graham, Chairman
and CTO of Bandwidth9. If
used for hot standbys and spares, a few tunable lasers could
replace whole racks of fixed lasers, yielding dramatic savings
for metro networks. Strategically,
Graham anticipates that tunable lasers will be used for the
remote provisioning of wavelength-on-demand services.
Bandwidth9 is developing a MEMs-based, single-cavity
VCSEL laser that can tune to the entire C-band and L-band
wavelengths. The
VCSEL/MEMs technology will also offer wavelength filtering
capabilities, enabling it to provide add/drop functionality.
Dr.
Larry Coldren, Chairman and CTO of Agility Communications,
believes a 100-fold increase in bandwidth demand is still
possible, despite the market conditions.
His company is betting that tunable lasers will be the
enabling technology that lowers the cost of bandwidth and thus
drives demand. Agility’s
initial product is a 4mW, widely tunable laser with no moving
parts and built with Indium Phosphide technology.
The InP fabrication, Coldren argues, is key to the
evolution of optical components because it allows for the
integration of tunable lasers with other devices, such as
modulators, amplifiers, and all-optical wavelength converters.
April 17, 2001
NGN
VENTURES: HIGH
PERFORMANCE SEMICONDUCTORS
In
the old networking R&D model, systems companies developed
all aspects of their boxes by themselves.
This has given way to a new model, according to Daryn
Lau, President & CEO of ZettaCom, that is an “ecosystem of
best of breed companies” in which system vendors become
“alchemists of innovation,” pulling together the best ideas
of numerous companies, especially key silicon advancements.
ZettaCom is developing core switching and protocol
processing silicon solution for highly scalable, multi-service
optical systems.
Perry
Constantine, President & CEO of Silicon Access Networks,
said that service providers must become profitable and must do
so by finding new ways to bring value to their customers.
In the coming years, they will face increasing pressure
to provide dynamic bandwidth allocation, to allow user driven
provisioning, to bill based on usage, and to manage increasing
complexity of traffic. Constantine
believes these needs give network processors many advantages
over an ASIC approach in system development, particularly in
time to market. Silicon
Access is developing a chipset for deep packet processing with
native support for both 10 gigabit Ethernet (10GE) and OC-192.
Integrated
multi-service customer premise devices make up a huge market
with a strong need for processors, according to George Alexi,
President & CEO of BRECSIS Communications.
These systems will have to work with existing
technologies like ATM and Frame Relay, as well as IP.
“The old technologies don’t die as fast as the
marketing guys say, and the new technologies don’t grow as
fast as they say,” commented Alexi.
BRECIS has set its sights on a Multi-Service Processor
architecture for next generation customer premises equipment.
Shri
Dodani, President & CEO of VxTel believes that there is an
enormous opportunity for network processors in the Voice over
Packet market. Dodani
believes that service providers want converged, multi-service,
multi-protocol networks that address the more than 800 million
phone lines already in existence.
VxTel has developed a high-performance digital signal
processor (DSP) especially for voice-over-packet,
voice-over-DSL, voice-over-cable, and voice-over-wireless
applications. Intel
agreed to acquire VxTel in February for approximately $550
million in cash.
April 17, 2001
START-UP
DIRECTORY – 600 NETWORKING START-UP COMPANIES BY NAME, REGION,
OR TECHNOLOGY
Our Directory of
Networking Start-ups now includes more than 600 companies.
You can find start-ups by name, region, or technology on
our Web site. http://www.convergedigest.com/DirectoryStartupsX.asp
E-XPEDIENT
INTRODUCES 100 MBPS
RADIO / FREE SPACE OPTICAL ACCESS IN MIAMI
e-xpedient, a
start-up service provider, announced a commercial, 100 Mbps
access service in Miami, Florida that uses free-space optics (FSO)
and 60 GHz broadband fixed-wireless radios.
e-xpedient said its 60 GHz radios allow for very dense
deployments without interference issues and without complicated
frequency planning. The
company has previously announced agreements to acquire eleven 38
GHz broadband fixed wireless licenses in major metro markets
across the US. http://www.e-xpedient.com
e-xpedient, April 17, 2001
- e-xpedient is headed by Brian
J. Andrew, who also founded Triton Network Systems, a
developer of broadband fixed-wireless equipment.
- Last October, e-xpedient
secured $55 million in equity financing from Invesco Private
Capital, Employees' Retirement Plan of KeySpan Corporation,
KeySpan Corporation Employee Benefit Trust for Management
Employees - Medical Benefits, and initial investors Adams
Capital Management, Advent International, Dolphin
Communications, and Patricof & Co. Ventures Inc.
BELL
CANADA IMPLEMENTS CISCO MPLS FOR IP VPNS
Bell
Canada introduced an IP VPN Enterprise service, offering three
levels of service, which customers can manage online.
Bell Canada’s IP backbone, which handles 75% of
Canadian Internet traffic, uses Cisco Systems' MPLS technology.
The service is being offered across Canada and in several
US cities. Bell
Canada’s three service tiers are:
- Standard class: basic service
for e-mail, file transfer and non-critical Internet access
- Priority
class: allows for applications such as critical Internet
access, point-of-sale and streaming video
- Near
real-time class: allows for applications such as voice-over
IP and video conferencing
http://www.bell.ca/en/about/news/releas/2001/pr_20010417.asp
Bell
Canada, April
17, 2001
GLOBAL
CROSSING LAUNCHES MPLS-BASED IP BACKBONE TRANSPORT
Global Crossing
has implemented Multi Protocol Label Switching-traffic
engineering (MPLS-te)
as a backbone transport technology across its global, meshed
network using equipment from Juniper Networks.
The technology enhances network manageability between the
SONET and IP layers. Global
Crossing expects that MPLS-based
service protection will soon surpass SONET restoration times.
The company also sees MPLS as a key driver of new
IP-based services, including VPNs.
http://www.globalcrossing.com/pressreleases/pr_041701b.htm
Global
Crossing, April 17, 2001
TYCOM
AND FLAG TO JOINTLY DEVELOP TRANSPACIFIC NETWORK
TyCom and FLAG
Telecom agreed to join their previously announced transpacific
network projects in a shared development arrangement that will
result in a single, undersea cable system.
Under the deal, TyCom will receive contracts to build the
complete transpacific ring, part of which will become the FLAG
Pacific-1 network, for US$1.7 billion, which includes all
undersea cable, electronics and cable stations. TyCom will
purchase from FLAG Telecom four fiber pairs on that ring to
create the TyCom Transpacific portion of the TyCom Global
Network (TGN). The
undersea cable will be approximately 24,100 km long and will
connect Japan to the West Coast of the United States, then
return to Asia via Hawaii and Guam.
It will feature an 8-fiber pair architecture, using both
64- and 96- channel DWDM, to provide a maximum capacity up to
7.68 Tbps. Commissioning
is expected in Q2 2002. http://www.tyco.com/
TyCom, April 17, 2001
- Tyco International acquired
AT&T's Submarine Systems division in 1997.
The company operates a fleet of ships for laying
communication cables for international telecom carriers.
Tyco International, TyCom's parent company, announced
its intention to build and operate its own undersea global
fiber network in January 2000.
- In
February, TyCom signed a partnership agreement with
DishnetDSL Limited of India to build an eight fiber pair,
19,000-km undersea ring network with a 7.68 Tbps maximum
capacity interconnecting Chennai, India with Singapore, Guam
and Jakarta, Indonesia.
MOTOROLA
AND CONEXANT TO JOINTLY DEVELOP SILICON SOLUTIONS
Conexant
Systems and Motorola agreed to jointly define, develop and
manufacture system silicon solutions for broadband
communications devices. Conexant
will supply standard cable modem chipsets to Motorola and will
support Motorola as a second source for these devices.
The companies will also collaborate to create new,
customized silicon solutions for cable modems, digital set-top
boxes and VoIP products. http://www.conexant.com
Conexant, April 17, 2001
CIDRA
WITHDRAWS IPO – TUNABLE PHOTONICS
In light of
current market conditions, CiDRA, a developer of tunable
photonic components and subsystems, submitted an application to
the Securities and Exchange Commission to withdraw its
Registration Statement for an initial public offering.
http://www.cidra.com/
CiDRA, April 17, 2001
- Last
June, CiDRA secured $100 million in equity financing
to ramp-up its manufacturing capacity as well as accelerate
its product development activities.
CiDRA's components/modules are based on a proprietary
fiber and Bragg grating packaging technology that permits
accurate tuning of wavelengths.
Applications could include tunable DWDM channel
filters, channel analyzers, tunable fiber lasers and
reconfigurable optical add-drop multiplexers.
- CiDRA is led by Kevin Didden,
formerly Manager of Technology Application for the United
Technologies Research Center. The company is based in
Wallingford, CT.