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Technology Stocks : Harmonic Lightwaves (HLIT)
HLIT 10.39+7.2%12:43 PM EST

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To: Mark Oliver who wrote (2426)8/7/1998 9:04:00 PM
From: Hiram Walker  Read Replies (1) of 4134
 
Mark, not sure about the cost,but Mr. Levi from HLIT said a typical 16DWDM costs over 1 million.

bcr.com

Today, that capacity comes at a stiff price. According to Israel Levi, VP of research and development for Harmonic Lightwaves, Inc. (www.harmonic-lightwaves.com), a 16-channel system currently costs about $1 million for both ends. He believes, however, that prices are about to plummet by two-thirds or more within the next year. Additional capacity increases--to 80 or 96 channels per path--can be expected by 2000.

Now, in addition to these two possibilities, DWDM provides an additional multiplexing option: Several optical signals can be combined onto the same fiber path. Because WDM operates at the optical range, it couldn't care less about the digital multiplexing format that is being used. That means SONET and non-SONET fiber systems, as well as analog fiber systems used for cable television, can all be combined onto the same fiber

The development of DWDM and high-capacity ATM and Layer 3 switches will provide new options for how switched or dedicated services can be delivered to users. With DWDM, each independent fiber transmitter is assigned a different wavelength, which means we can switch different wavelengths onto different paths.

The ability to switch those different wavelengths is called lambda switching or photonic switching. (If SONET is doing Layer 1 switching, lambda switching must be Layer 0.5!) The idea in a photonic switch would be to use a switching network to break out the wavelengths of the various fiber inputs and recombine them into new outputs.

The first step toward photonic switching--optical cross connects and add/drop multiplexers--is no longer a distant prospect. Ciena Corp. (www.ciena.com) and Harmonic Lightwaves are developing products for rearranging optical channels. Lucent (www.lucent.com) introduced a preliminary 32-line optical cross connect system last year. Others, like Astarte Fiber Networks (www.starswitch.com) and Cambrian Systems (www.cambriansys.com, a division of Newbridge) are also planning products in this area. Chorum Technologies (www.chorumtech.com) and Tellium (www.tellium.com) are developing optical add/drop multiplexers for WDM fiber networks.

Other suppliers, like Lightwave Microsystems (www.lightwavemicro.com) and Optical Micromachines (San Diego) are building components for switching optical signals. The preliminary versions of these devices are quite costly, but according to Mr. Levi of Harmonic Lightwaves, photonic switches should be readily available and cost effective in two to five years.

While lambda switching gives us a Layer 0.5 switching capability, ATM switches and Layer 3 switches give us Layer 2 and Layer 3 capabilities. If you have been following recent announcements from established companies like Bay and Cisco, as well as upstarts like Avici Systems and Juniper Networks
(see BCR, May 1998, pp. 56-59), you know that router capacities are exploding.

One of the great surprises in network technology in the past few years is that we can do hardware switching without ATM. While many of the Layer 3 switching devices actually use ATM under IP (i.e., the IP datagram is split up into a series of 48-octet chunks and sent on an ATM virtual circuit), others like Avici are looking at switching IP directly, without depending on ATM. In either case, SONET will define the standard Layer 1 trunk format, and the SONET frame will be filled with either ATM cells or IP datagrams.

If we can build that SONET interface directly into the ATM or Layer 3 switch, it could produce traffic that is wrapped and ready for SONET and connects directly to DWDM equipment.
Tim
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