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Technology Stocks : The *NEW* Frank Coluccio Technology Forum -- Ignore unavailable to you. Want to Upgrade?


To: Frank A. Coluccio who wrote (20851)5/24/2007 3:53:15 AM
From: Frank A. Coluccio  Respond to of 46821
 
Nortel Says 40-Gbit PBT Coming Soon
Ryan Lawler | MAY 23, 2007

lightreading.com

Nortel Networks Ltd. sees an opportunity to steal market share from router manufacturers through its provider backbone transport (PBT) business. Philippe Morin, president of Nortel's Metro Ethernet Networks business, also said Nortel expects to announce a 40-Gbit/s PBT product by the end of the year, during an investor conference call today hosted by Prudential Equity Group LLC analyst Inder Singh.

Nortel was an early supporter of PBT, a controversial technology designed to bring carrier-grade transport features at an Ethernet price point. But a number of equipment suppliers have recently joined the market, as carriers begin to look more closely at PBT. (See PBT Gathers Support, PBT: New Kid on the Metro Block, Will Fujitsu Join PBT Parade?, and Huawei Joins PBT Fan Club.)

The technology got a huge boost when BT Group plc (NYSE: BT - message board; London: BTA) announced it would be used in the carrier's 21CN next-generation network project, a contract that Nortel and Siemens AG (NYSE: SI - message board; Frankfurt: SIE) won. Outlining his company's view of the PBT market and the opportunity in it, Morin touted Nortel's first-mover advantage in the market, due to its early focus on PBT and its BT 21CN win. (See BT Rethinks 21CN Core Strategy, Nortel, Siemens Win PBT Deals at BT, Nortel on PBT: Today BT, Tomorrow the World!, and BT Pressures Vendors Over PBT.)

The BT win was "a huge vote of confidence," which has led to a number of trials and interest in Nortel's PBT solution. "Since January [when the BT win was announced], we've been on a lot of planes and in a lot of meetings" with potential customers, Morin said.

Now Nortel believes it can win share in the Ethernet transport space and elsewhere in the telecom equipment market. Believing that in next-generation networks carrier Ethernet and optical technologies will continue to move together, Morin says this will provide an opportunity for Nortel to grab market share from traditional router manufacturers.

But he said that despite the company's early success, it is continuing to enhance its PBT portfolio. As part of this initiative, Nortel is working on a 40-Gbit/s PBT solution, which Morin said he expects to be launched by the end of the year.

The company is also participating in the standards process and working with other vendors in the PBT space on interoperability. Admitting that PBT is still in early stages of standardization, Morin said that the process is moving quickly but will probably take 18 months to two years to run its course.

Even so, customers don't appear to be daunted by lack of standardization. "Customers like BT are comfortable with where [PBT] is now," Morin said. "BT is not waiting for standards to get approved."

Morin says Nortel is collaborating with PBT players to build ecosystems of vendors and suppliers, and to improve operability among them. He said that with many PBT vendors, Nortel is not competing head to head, but working together to offer end-to-end solutions to customers.

The real competition in metro transport, he says, isn't coming from other PBT vendors, but from Multiprotocol Label Switching (MPLS) and VPLS (virtual private LAN service) competitors. While Nortel will work to create interoperability with MPLS, Morin believes that PBT offers advantages in metro networks, where "we don't believe MPLS can scale."

Despite the BT win and current trials with Tier 1 carriers, Morin believes in the short term that most North American PBT buying decisions will come from Tier 2 companies. Nortel is also targeting MSOs for PBT-based business services and wireless providers looking to extend wireless backhaul networks.

"We're very happy with market movement and takeup," Morin says. "We're happy with the level of [customer] engagements."

— Ryan Lawler, Reporter, Light Reading



To: Frank A. Coluccio who wrote (20851)6/25/2007 8:32:20 PM
From: Frank A. Coluccio  Respond to of 46821
 
[PBT] Provider Backbone Transport Parties On
Ray Le Maistre | Light Reading
JUNE 25, 2007

[ click URL for best read and hidden links ]

lightreading.com

Love it or hate it, Provider Backbone Transport (PBT) is a technology that is gathering increasing attention and support from the vendor community and, according to reports, some major carriers, too.

If you haven't been keeping up, PBT enables deterministic point-to-point Ethernet transport tunnels with SDH-like management characteristics. Just how far this technology has come was evident at last week's NXTcomm show in Chicago. In stark contrast to a year earlier, when only Nortel Networks Ltd. was banging the drum, PBT marketing and demos were to be found all across the show floor as vendors look to ride the wave that began when BT Group plc announced it was deploying the connection-oriented technology in its 21CN next-generation network.

So here's a rundown of NXTcomm's PBT highlights, starting with the technology's lead supporter, Nortel.

Nortel touts Tier 1 interest

Nortel announced its Carrier Ethernet Ecosystem with a number of partners that are keen to show off their PBT credentials, set up interoperability tests, and create joint marketing efforts. It also announced a new PBT customer in the form of Frontier, an ILEC that's part of Citizens Communications Co.

Separately, Philippe Morin, Nortel's president of Metro Ethernet Networks, says the ecosystem is necessary just now, while PBT goes through the standards process at the Institute of Electrical and Electronics Engineers Inc. (IEEE) , where it is called PBB-TE (Provider Backbone Bridges – Traffic Engineering). Morin believes it will be another 18 to 24 months before a standard is ready.

Morin says the most interest in PBT is coming from Europe and that Nortel has been talking to major carriers, including France Telecom SA and Deutsche Telekom AG. Interest in North America, though, "is picking up -- the Frontier deal is part of that process. I expect the ILECs to move faster" than the Tier 1s, says the Nortel man.

Next up for Nortel is the integration of PBT functionality, currently on offer as part of the vendor's 8600 Ethernet switch, into more platforms, including its optical and even its enterprise portfolio, says Morin.

Managing PBT

One of the most contentious issues surrounding PBT -- which, supporters such as Nortel claim, can deliver the security and resilience of SDH but at Ethernet infrastructure prices -- is how it will be managed.

Two companies, Gridpoint Systems Inc. and Soapstone Networks , say they can help carriers in this respect.

Startup Gridpoint unveiled its Ethernet Path Computation Module (E-PCM), which allows carriers to set up connections with guaranteed network resources. The company's director of product line management, Nick Cadwgan, says the same underlying technology can be applied to non-PBT technologies as well.

Soapstone, the new branch of router vendor Avici Systems Inc., was demonstrating how its PNC (provider network controller) can act as the control plane for PBT networks, providing Ethernet tunnel path selection and management, as well as interfaces to existing OSS systems.

Demand for PBT building blocks

Tpack A/S , which provides FPGA designs and applications software for multiple technologies, including PBT and its MPLS equivalent, Transport MPLS (T-MPLS), says there has been a lot of interest in both technologies in recent months.

Marketing director Daniel Barry says his company has struck more deals like the one announced earlier this year with optical vendor Meriton Networks Inc. , where Tpack is providing the PBT building blocks that enable Meriton to add PBT capabilities to its Optical Switching Platform.

"PBT and T-MPLS have woken up the transport arena, but it's not about PBT versus T-MPLS, it's about understanding the way in which they work together and when they're suitable," he notes. "The general trend is towards carrier Ethernet transport -- the combination of OTN, WDM, and PBT/T-MPLS."

Testing PBT

Ixia is the first of the test-and-measurement fraternity to align itself to the PBT fraternity, saying it has added the capabilities needed to test PBT functionality, and applications running over PBT, into its Carrier Ethernet Test Solution.

The company's VP of product management, Neal Roche, says Ixia has been able to add MAC-in-MAC (802.1ah) capabilities to its IX platform using its integrated Packet Designer functionality, which enables it to emulate multivendor PBT networking scenarios, including handoffs to MPLS networks.

Roche says Ixia will join Nortel's Ecosystem and support the test cases that Nortel will develop as part of the partner program.

Demand or curiosity

Other companies showing off their PBT credentials at NXTcomm were Extreme Networks Inc., Hammerhead Systems Inc. , Nokia Siemens Networks , and World Wide Packets Inc. .

Dror Bar-on, carrier Ethernet marketing manager at Nokia Siemens, says there's interest from major North American carriers in how PBT can fit into their network strategies, and especially what it is that BT is doing with PBT. Nokia Siemens, which was emphasizing the potential cost savings PBT can deliver to operators during its in-stand demo, is one of BT's two PBT system suppliers.

World Wide Packets also reports steady interest in PBT. Marketing director Marty Hess says "everyone has been asking about PBT and the Nortel grouping," while Chad Whalen, senior VP of business development, adds that "the market is in inquisitive mode," and that there is interest from carriers and potential vendor partners.

— Ray Le Maistre, International News Editor, Light Reading

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