Metro DWDM is here!!! GG says this is the next step towards the edge..the LAN. Once it hits the enterprise; gigantic market(We'll be rich!).
Local-Loop Products Are Good For The Long Haul
New fiber-optic products should free up bottlenecks, letting carriers roll out high-bandwidth services
By PAUL KORZENIOWSKI
Technical breakthroughs like wave division multiplexing sometimes prove a mixed blessing.
On the upside, they wring additional capacity from existing fiber-optic lines without a huge expense. Unfortunately, given the segmented nature of networks, such breakthroughs often displace the bandwidth bottleneck to elsewhere in the network.
During the past few years, long distance carriers have laid lots of long-haul fiber optic lines, and vendors have delivered dense wave division multiplexing (DWDM) products. If these networks were once bandwidth-constrained, they are now loaded with gigabits and even terabits of bandwidth.
As a result, bottlenecks are starting to emerge in the local loop where there is not as much fiber and little DWDM. Since the equipment used for long distance connections does not necessarily translate well for local-loop applications, suppliers are moving to deliver products geared to pushing high-capacity fiber connections into the local loop.
Such developments represent good news for enterprise customers. Carriers will be able to upgrade network connections more easily and may end up with excess capacity on their networks. To entice corporate enterprises to use that capacity, carriers are expected to reduce prices or develop novel value-added services.
While the benefits of fiber optic technology have been very clear for 20 years or more, the medium has been 20 percent to 40 percent more expensive than coaxial cable connections. Fiber's complexity was one reason, but a lack of reliable standards also contributed to the sharp price differential.
In the past few years, the International Telecommunication Union (ITU) stepped in and outlined how DWDM transmissions should travel over networks.
"Once the ITU standards were established, third parties were able to deliver standard filters and amplifiers, and that has driven fiber pricing down," said Cindana Cornwell, a senior marketing manager at Nortel Networks Inc.'s Optoelectronics Division.
These systems were first implemented in long-haul connections, where the higher cost for fiber connections could be more easily justified than in the local loop.
"A few years ago, long distance carriers were operating at 60 percent to 75 percent of capacity," said Curt Weinstein, a product line manager for single-mode fiber at Corning Inc. "A number of new players emerged to take advantage of the Internet boom, and their aggressive deployment schedules, along with those from established carriers, have started to alleviate that congestion."
DWDM has been key to easing congestion problems. It enables carriers to squeeze more bandwidth out of fiber lines by increasing the number of wavelengths that travel down a single fiber optic connection as well as the top speed of each wavelength. Vendors have been working to increase the maximum number of wavelengths from eight to 190 and the top speed from 622 Mbps to 40 Gbps.
So, DWDM simplifies network upgrades. Traditionally, carriers had been digging ditches and putting in more fiber to boost bandwidth levels.
Now, the upgrade process involves installing new signaling equipment or making changes to a signaling device's software.
Currently, the densest products carriers are tinkering with support 40 wavelengths and a top speed of 2.5 Gbps--although products are emerging in the market that promise 10 Gbps connections.
To increase capacity, vendors must overcome a series of problems. Dispersion is their most significant challenge.
"As wavelengths travel along a fiber optic line, they can splinter, bump into one another and disrupt connections," explained Yochay Danziger, chief technology officer at LaserComm Inc. The higher the wavelength density, the greater that potential.
To solve the problem, suppliers have delivered amplifiers, which regenerate wavelengths as they travel along a line. However, amplifiers can be expensive, costing $50,000 to $100,000 per unit. So equipment vendors have been developing new technologies, such as LaserComm's Spatial Mode Transformation, that boost the maximum distance between amplifiers.
The type of fiber carriers have in place also determines how much amplification is needed. Carriers have largely deployed single-mode fiber, while multimode fiber has found a home in enterprise networks. Most single-mode fiber was not designed to carry such dense transmissions.
Corning's LEAF single-mode fiber, which was introduced in February 1998, does not need as much regeneration or consume as much power as traditional single-mode fiber lines.
Consequently, it can support transmissions traveling more than 50 kilometers (31 miles) while most fiber was optimized to 10-kilometer (6.2 miles) connections.
Corning's Weinstein said the company sold 1 million kilometers of LEAF fiber last year, which accounted for about 10 percent to 15 percent of all its fiber sales and expects that number increased to the 20 percent to 25 percent range this year.
Equipment vendors face another challenge in taking advantage of these new high-bandwidth options. "Carriers want systems that are compact, do not consume additional power and do not generate more heat," said Victor Mizrahi, chief scientist at Ciena Corp.
Suppliers think microprocessor improvements can solve these problems and lead to delivery of higher-speed DWDM systems. By the end of the year, products supporting 160 separate 10-Gbps wavelengths (1.6 Tbps of bandwidth) are expected to make their way out of vendor test labs and into carrier networks for trials.
Most of this bandwidth will be deployed in long-haul connections.
"The dynamics of building high-speed networks is changing so soon there will be a glut of long distance capacity and limitations will be in the local loop," said George Peabody, managing director of telecommunications research at the Aberdeen Group, a market research firm.
Solving the problem will not be simple because DWDS multiplexers and amplifiers have been fine-tuned for long distance networks.
"With local connections, there are more access points, so distance isn't as big a factor as it is with long-haul DWDM," said Scott Clavenna, an analyst at Pioneer Consulting LLC, a market research firm.
Aware of the local-loop problem, equipment vendors have been designing products for local carriers. Clavenna said the new products cut local loop DWDM deployment costs by 25 percent to 40 percent.
Carrier interest in the new wares is high. ISPs see the products as a way to differentiate their services by offering customers higher-speed Internet connections. Competitive local exchange carriers need the bandwidth to compete with incumbent local carriers.
Cable & Wireless USA Inc. plans to install during the next two years DWDM multiplexers in 60 metropolitan areas across the country.
Because of such rapid deployments, Pioneer Consulting expects North American carrier purchases of local DWDM equipment to increase from $115 million this year to $923 million in 2003.
As this rampup on the local loop occurs, the source of network bottlenecks could very well shift once again.
"Once local fiber is in place, carriers can roll out digital subscriber line services and run more fiber to the curb," said Aberdeen Group's Peabody.
"Corporations and their employees can fill up that bandwidth with various multimedia applications, such as videoconferencing,'' Peabody said.
"Those services may quickly use the extra capacity in the long haul network, and suppliers will be looking for ways to push DWDM capacity even higher."
Paul Korzeniowski is a freelance technology writer based in Sudbury, Mass., who specializes in bandwidth and networking issues. He can be reached at paulkorzen@aol.com.
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