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Technology Stocks : MRV Communications (MRVC) opinions?
MRVC 9.975-0.1%Aug 15 5:00 PM EST

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To: NDBFREE who wrote (42614)12/28/2006 9:33:08 PM
From: NDBFREE  Read Replies (1) of 42804
 
Verizon Sets Aggressive FiOS Expansion

MDUs Are The Focus For 07

by Sean Buckley

Wed, December 27. 2006



With a plan to connect 18 million premises with fiber by the end of 2010, it’s safe to say that Verizon is probably the most ambitious of the large ILECs when it comes to broadband access.

While 2005 and 2006 were all about proving that FTTP (fiber to the premises) can work, in 2007 the emphasis of Verizon’s FTTP drive will be on extending those services to the MDU (multi-dwelling unit) market segment. Given that Verizon passes through some large urban areas such as Boston and New York, both with an abundance of MDUs, such a drive makes sense.

“We will continue to deploy BPON (broadband passive optical network), but the main challenge for 2007 will be taking advantage of the MDU opportunity,” said Vincent O’Byrne, director of technology for Verizon. “We’re going to expand that next year using a multi-customer ONT (optical network terminal).”

These new ONTs, supplied by the likes of Alcatel, Motorola and Tellabs, will be able to support any number of customers from a single unit. After it gets its best practices down, Verizon will extend the benefits of these second-generation ONTs across its footprint, offering additional capacity in a more compact space to target both small apartment buildings and large MDUs in big cities.

Through these ONTs, Verizon will deliver services to the end-customer using standard Ethernet and VDSL on BPON. Going forward, Verizon will deploy VDSL2 over GPON (Gigabit PON). To avoid rewiring each premises with Cat 5 wiring, the Tellabs ONT uses MoCA® (Multimedia over Coax Alliance) that connects to an integrated broadband router in the living space that employs the customer’s existing coax connection to distribute video and data.

While Verizon’s initial FTTP drive was over BPON, in 2007 the emphasis will be on deploying GPON for MDUs. GPON will be able to provide enough bandwidth for high-speed data downloads/uploads and for Verizon’s future roll out of IPTV. After it finishes its internal review of GPON- capable ONT units, Verizon hopes to deploy VDSL2-enabled GPON ONTs by mid-year.

Overall, the key is to have a common vision for every customer connection, says O’Byrne. “Our preference, even in MDUs, especially in Greenfield markets, would be to put in a modified single-family unit similar to what we have been deploying on the outside of people’s houses in the living unit,” he said. “That way customers can get exactly the same service set regardless if they live in an MDU or a single family home.” But for all the possibilities that will come with an all fiber-based access network, Verizon realizes that it will be years before it reaches a critical mass. Unlike AT&T and BellSouth, which have advocated delivering ADSL2+ over FTTN (fiber to the node) architecture, Verizon will carry ADSL2+ services over shorter loops.

That said, Verizon is eyeing DSM (dynamic spectrum management) and MIMO/DMT (multiple-in, multiple-out/digital multimedia technology) to improve its DSL network. “Our DSL network is still very important to us, so we’re looking at MIMO/DMT and DSM. We have several trials planned with vendors on those technologies to see if we can improve DSL performance across a larger number of lines,” he said. “The objective with DSM technology is to see if we can preemptively spot and analyze troubles and equalize the performance across the lines. Obviously, we have certain throughputs out to a certain distance, but we want to make sure that everyone at that distance has a better chance of getting that throughput.”
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