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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: Tango who wrote (402)10/15/1996 12:21:00 AM
From: Dan Spillane   of 42804
 
The MRVC Gigabit Ethernet modules, due out next month, are rated at 10 times the "required" distance. The spec at the Gig Ether standards site says 2km, and the MRVC modules are rated at 20km. But then again, we know MRVC is an expert in fiber-optic transmission (NOT cable, smirk).

With two of the Gig modules, LANS can be connected together reliably up to MAN distances. WAN distances(100km+) are supported only by the lower-speed modules, right now.

The nice thing is, these modules plug in to the MegaSwitch 2...there is already a customer base to upgrade to Gig Ether! Not only does MRVC have a product, but someone to sell it to (an important detail).

To answer your questions:
As far as I can tell at this point, Gig Ether is targeted mainly at LAN backbones, but I see no reason not to carry high-speed switched protocol all the way from the desktop and across the Internet backbone. This doesn't mean Gig Ether per se will make it to the WAN backbone; however, a somewhat Ethernet-like switching method can be used--but it does not have to be ATM. In fact, if it is ATM, that throws a wrench into things...as ATM differs somewhat from switched Ethernet (simply stated, lots of things have to be changed back and forth).

An Internet WAN backbone requires a gigabit+, determinisitic implementation which is insulated from LAN broadcasts. ATM fits this bill, but it is clumsy to map to and from the LAN Ethernet protocol.

That's where high-speed switching comes in. Instead of a clumsy mapping, these switches more naturally and "smartly" carry protocol over high speed links(typically fiber-optic), making them a good fit for corporate backbones and even Internet backbones. This is why I believe MRVC made the Fibronics acquistion...primarily to provide enterprise backbone along with the current product line. And, depending on how fast MRVC advances on the fiber optic front, we may see Gig Ether sporting WAN distances in the not-too-distant futue.

Incidentally, MRVC should benefit strongly as secular shifting from copper to fiber optic occurs. Whereas the fiber optic cable is pretty much a commodity, the laser transceiver modules are not...which MRVC is tops in. Whatever technology wins (GE, ATM, FDDI, ???) fiber optic is the way to go. I understand there are already shortages of key transmission products (but not the cable).

Dan
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