Jorj, this is somewhat applicable to your discussion since metro optical needs to be built in order t bring it to the home...
Astral Point in $100m 'metro optical' deal with Time Warner unit
By Peter J. Howe, Globe Staff, 10/17/2000
Astral Point Communications Inc., a Chelmsford optical networking start-up, is set to announce a $100 million-plus deal with Time Warner Telecom today that could help it break out from the fevered din of hype about optical start-ups.
Time Warner Telecom, a Colorado unit of the media empire that provides high-speed data and phone service for businesses in 22 US markets, with several more planned in 2001, said it will buy Astral's ON 5000 switching device, which is touted as helping carriers quickly turn on and reconfigure high-capacity data lines for businesses.
Privately held Astral Point is among the first players in the so-called metropolitan segment of the optical market to announce an actual customer for a product aimed at linking a city business district to a national optical network.
Astral and Time Warner executives described the $100 million figure, to be spent over several years, as a probable minimum payment that could go higher depending on how the company builds out its networks. Time Warner has no reported financial stake in Astral Point.
One indication of how hot ''metro optical'' has become are the price tags for start-ups. Sycamore Networks of Chelmsford last month paid $3.55 billion for Sirocco Systems of Wallingford, Conn., a company that has yet to sell anything. Cisco Systems bought Cerent Corp. last year for $7 billion, and Lucent Technologies put over $4 billion into grabbing Chromatis Networks Inc.
Most of Time Warner Telecom's 22 current markets are in such Sun Belt cities as Charlotte, Dallas, Houston, Orlando, San Antonio and San Diego, and areas of New York, New Jersey and Ohio. Time Warner is in the process of adding up to 20 more US and Canadian markets through its $690 million of bankrupt GST Telecommunications Inc.
Astral Point said its gear is being tested by 17 other carriers and said it hopes to have sales to report in coming weeks and months. |
