IBD article. Voice And Data Give Networks Fiber Appetite
Date: 5/27/98
Author: Michele Hostetler
More eyes - and computers - are on optical
networks, which use fiber-optic lines to
shuttle voice and data.
Lucent Technologies Inc., Cisco Systems Inc.
and Ciena Corp. are among the companies
boosting their optical networking offerings.
And put Chatsworth, Calif.-based MRV
Communications Inc. in that group.
The company recently began shipping in
volume an optical product called wavelength
division multiplexers. WDMs act like a prism
for optical networks, increasing the number of
wavelengths in the optical cables so more
information can be transmitted. Optical
technology speeds networks even faster than
such technologies as Gigabit Ethernet or Fast
Ethernet, which are the fastest forms of the
most prevalent networking technology.
MRV Chief Executive Noam Lotan recently
spoke with IBD about the rise of optical
networking.
IBD:
How will optical networks affect existing
local-area networks?
Lotan:
I think the optical network will constitute the
trunk line that will uplink different types of
traffic in (voice- data) converged networks.
Even if you look at short-range (networks
running) Gigabit Ethernet, for example. Within
the same wiring closet you have to run mostly
fiber simply because the speed is such that it
will not tolerate copper cable. Fast Ethernet
you also have to run fiber. So even the traffic
that is now commonplace in today's
corporate networks such as Gigabit Ethernet,
even that has to run over fiber at a length of
100 meters or more.
IBD:
What's driving the growth in optical
networks?
Lotan:
There are a number of (things). The train is
coming at us - the demand for bandwidth.
What happens is that as you bring gigabit
speed, you need a multigigabit pipeline. That's
where the requirement for high-density optics
is beginning to happen. If you want to run
much higher density traffic, the cost is so high
that it's cheaper to run it on fiber. That's the
essence of wavelength division multiplexing.
Pure electronics is becoming a lot more
expensive. That's why it's cheaper to do
multiple gigabit at multiple wavelengths.
IBD:
Is this a crucial year for fiber-optic networks
to take root?
Lotan:
It certainly is the year of fiber. Right now,
those local exchange carriers and
long-distance carriers all want a piece of the
action, especially when you have Level 3 and
Qwest out building their fiber-optic networks.
The large carriers don't want to be caught
with an outdated infrastructure.
I think it was Ross Perot, when he was on the
board of General Motors, who said, ''How
do you make an elephant dance?'' The only
way to make him dance is to poke him in
sensitive spots. I think what Qwest and Level
3 are doing is they're basically poking the
elephant. WorldCom, AT&T and Sprint are
rushing to keep up with the new kids on the
block.
We're seeing continued investment in
infrastructure and a race between local
exchange carriers and the long-distance
companies to rebuild a portion of their
infrastructure. The cheapest way to do it
instead of laying new fiber is to get as much
bandwidth as you can out of existing fiber.
Instead of laying new fiber lines, that's where
the technology of WDM comes in. (Analysts
predict) the WDM market will rise from
approximately $1 billion this year to $4 billion
by 2000.
IBD:
When will fiber optics become commonplace
in residential neighborhoods?
Lotan:
There will be at some point a transition,
probably a gradual transition, to fiber in the
local loop. Once you bring the fiber to the
local loop, you can sell services where you
are only limited by the end equipment at the
edge of the fiber. Right now fiber is
penetrating the local loop. There are already
500,000 subscribers installed.
It becomes a business opportunity for the
local exchange carriers. I think what we are
going to see as we move forward . . . once
you provide that bandwidth there will be
more people putting pressure on the trunk
line, which will then necessitate further
upgrades. The thing with bandwidth is that
once you provide it, people use it and then
they need more.
IBD:
How does fiber play in converged networks,
where voice and data are running over the
same network?
Lotan:
The telephone system is extremely efficient in
terms of quality. On the other hand, the
Internet is only reliable about 60% of the
time. But it's very tempting because you can
packetize voice. You're breaking down your
data or voice into packets. It's like Chinese
food. You cut it into bite-size (pieces). Then
the packets are reassembled at the receiving
end. Fiber can help a lot with quality. The
question is now between the 60% quality
level of the Internet and the 99.999% of the
phone system. How much is acceptable to
the consumer? It's a question of (getting)
what you pay for. If you want to have a high
level of quality, you stick to telephone
service.
(C) Copyright 1998 Investors Business Daily,
Inc.
Metadata: LU CSCO CIEN MRVC LVLT QWST
WCOM T FON I/4890 I/3574 I/4891 E/IBD E/SN1
E/TECH |
