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Xtera IPO an Act of Desperation?

November, 2015

Apparently, Xtera Communications’ desire to exit the optical business can no longer be characterized at all as graceful, but as somewhat frantic. There had been speculation in the industry that the supplier had even backed out on the idea of filing the S1, and then afterwards, it cut the terms of the IPO in half. There is no question that IPOs universally have been deferred lately as a result of market instability. Although Xtera has truly compelling technology that amply differentiates itself from other vendors, the lack of a sexy story will not necessarily endear itself to investors. Also, they will probably be wary when it comes to its presently high level of customer concentration. However, if it is able to amply demonstrate a need for its technology by a number of the hyperscale data center players in the foreseeable future, then it may have a shot at attracting at least a limited a ...

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Google Fiber Fizzles as Predicted

August, 2016

In March, we posted an article called “Google’s Fiber: Laugh All the Way to Bank,” in which we stated: “While [Alphabet’s] Google has made a certain amount of investment in the deployment of fiber just to keep up the pretense, as we wrote in late 2014, its vested interest is in encouraging broadband build-outs by other entities in order to increase Internet traffic, which would have a positive effect on its core advertising business." Moreover, when this writer was a Principal at Telecom Pragmatics, Inc., we put out a press release back in April, 2010 with the headline, “Google's Fiber for Communities Will Probably Be Token Effort…” Now this month in the Wall Street Journal, there is a piece called “Google’s High-Speed Web Plans Hit Snags.” It simply defies credulity that the company’s “initial rollouts proved more expensive and time consuming than anticipated.” Once again, Google's excr ...

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Submarine Festoons Needed in US

November, 2016

Although undersea festoon networks can be found in many parts of the world, one would be hard-pressed to locate a single case in the States. From the perspectives of lower cost, speedier and simpler deployment, as well as indiscernible environmental impact, they should be a slam dunk. Nevertheless, for many years, the permission that is necessary from the various individual localities (all with different requirements) along with the studies that are demanded on both the west and east coasts of the country have made the otherwise practical usage of festoon applications cost-prohibitive, especially given the relatively short distances of the loops in this kind of an infrastructure. It is just one more example of how governmental bodies along with extremists on the environment get in the way of technological progress. In addressing the relatively small number of influential people in the la ...

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100G PSM4 Pricing at $2/Gig and Lower

March, 2017

At the Rump Session at OFC 2017, the topic for debate will be “Sub $0.25/Gbps Optics; How and When will Fiber Finally Kill Copper Cable Interconnects in the Data Center (DC)?” One of the questions for discussion will be “What happened to the $1/Gbps optics cost target for switch interconnects?” As it turns out, our intelligence gathering indicates that the prices being offered by a couple of vendors on PSM4 are even more aggressive than we indicated in a blog article in May of last year. Purchasers of our Clash of Optical Component Vendors & Technologies in Data Center Networks report have already received our detailed explanation as to Intel’s pricing and actual product strategy with their “silicon photonics,” which points to as low as $190 a unit for a high-volume purchase. We also understand that Luxtera has dropped the price of its PSM4s to $200. We believe that despite any excessive ...

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Higher Stakes with Web 2.0 Undersea Apps

March, 2017

One of the most interesting discussions at the OIDA Executive Forum Program will be the panel on “Internet Content Providers Building Out Undersea Networks - What Does This Mean for Everyone Else?” As far as the world is concerned, the answer to the question can hardly be exaggerated as the Internet backbone is vitally important. While in our last blog article we pointed out that just about all of the major hyperscale data center operators have in effect been forced to build out at least major portions of their terrestrial networks, because of the combination of the scarcity and cost of available high-speed circuits, the lack of adequate investment in submarine networks in recent years has resulted in these Web 2.0 companies perhaps having even fewer, if any, options, but to invest hefty amounts of money in wet infrastructure. Raising the stakes even further is that in some cases there a ...

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