May 21 2010
Infinera (NASDAQ: INFN) is accelerating its product development plans for next-generation optical systems to take advantage of evolving market trends and technological advances in product development.
The new product program includes plans for the shipment of systems based on 100 Gigabits/second (100G) coherent transmission in 2012 to meet, and accelerate, the growth in market demand for optical networks providing 8 Terabits/second (Tb/s) of capacity per fiber.
The new 100G systems will be based on Infinera's next-generation photonic integrated circuits (PICs) which integrate the functionality of hundreds of optical devices to provide 500 Gigabits/second (Gb/s) of optical capacity on a single pair of chips (500G PICs). These systems are designed to use coherent detection to deliver an optical system with ultra-long-haul reach, fiber capacity of 8Tb/s, and the disruptive economics of photonic integration. Infinera is also planning to add non-PIC based coherent capability to its DTN system in 2011, to meet the needs of customers who require a 40 Gigabits/second (40G) solution.
Growing Customer Interest in 100G
Service providers worldwide have shown growing interest in 100G as the best step forward from today's 10G networks. Infinera believes that this interest in 100G is driven by the continuing growth in mobile, video, and other sources of network traffic, and a growing consensus that 100G networks will benefit from more rapid price reductions than the market has seen for 40G technology. According to Infonetics analyst Andrew Schmitt, the 100G market is forecasted to see mass deployment beginning in 2013. "We expect 100G coherent technology to be widely available in the 2013 timeframe at price points that make it very competitive with 40G coherent technology, and we expect that many service providers will opt to go directly from 10 Gigabits/second (10G) to 100G at that point, making 100G the predominant long-haul technology of the coming decade," Schmitt said.
Within Infinera, the product development team has been working on both 40G and 100G solutions, including key optical and electrical enabling technologies. The recent achievement of a series of engineering milestones, such as Infinera's recent successful transmission of a 100G signal over 1600 kilometers of fiber using coherent modulation technology, has enabled Infinera to accelerate its timetable for a 100G solution. The company believes that this demonstration shows that an Infinera 100G system, based on Infinera's unique 500G PICs, will be able to meet ultra-long-haul reach requirements while delivering a significant boost in fiber capacity at a better cost-per-bit.
"We expect that Infinera's 100G system will reach the market at a time that enables 100G mass adoption," said Infinera CEO Tom Fallon. "In addition, Infinera 100G networks will offer very significant competitive advantages. Advanced features like digital bandwidth management and Bandwidth Virtualization™, which customers expect from Infinera, will continue to deliver valuable benefits in our intelligent networks. We believe that traditional muxponder-based DWDM systems become even more inefficient when carrying a wide range of lower-speed services over 100G wavelengths."
Infinera's 40G Systems
Infinera expects 40G demand to be limited, but believes a 40G solution may be required in the short term for certain applications needing additional fiber capacity, including terrestrial and submarine deployments. To meet those needs, Infinera will deliver 40G capability for the DTN next year. Infinera's 40G networks will offer all the benefits of Infinera's digital intelligence and a seamless transition from today's 10G networks.
Infinera believes its product development plan, including 40G and 100G networks, provides customers with the industry's best roadmap to accommodate future needs. For Infinera's customers, strong bandwidth growth creates the pressing challenge of expanding their networks while trying to maximize profitability amidst declining prices for telecom services. This new set of Infinera products is intended to enable service providers to expand their networks quickly and cost-effectively, while the disruptive economics of 500G PICs will help them generate better business results.
"Our mission at Infinera is to enable our customers to build and operate the world's best optical networks," said Mr. Fallon. "We believe that this product plan will give customers the networks they need to meet the challenges of the coming decade."