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To: Tom Aellis who wrote (1639)2/27/1998 3:15:00 PM
From: Glenn D. Rudolph  Read Replies (1) | Respond to of 12623
 
AT&T, MCI, Sprint, Others Invest in Americas II Cable System; New System to Link U.S., Caribbean, South America

Business Wire - February 27, 1998 12:27
%ATT %AMERICAS-II-CABLE T %NEW-YORK %COMED %COMPUTERS %ELECTRONICS %TELECOMMUNICATIONS V%BW P%BW

WILLEMSTAD, Curacao--(BUSINESS WIRE)--Feb. 27, 1998--An international consortium consisting of AT&T, MCI, Sprint, EMBRATEL of Brazil, and over 30 other telecommunications carriers today signed a construction and maintenance agreement to build a new fiber optic undersea cable system linking the United States with the Caribbean and South America. The Americas II Cable System will span more than 8,000 kilometers and cost an estimated $375 million. Tyco Submarine Systems International Ltd., and Alcatel Submarine Network Systems will build the system, which is expected to be completed and in service by September 1999. The collapsed ring system will utilize synchronous digital hierarchy technology and consist of four pairs of optical fiber cable. Each fiber pair will operate at 2.5 gigabits per second, per wavelength, for a total of 40 gigabits per second, allowing the transmission of more than 600,000 simultaneous calls. The new system is also ten times the capacity of the prese!
nt Americas I system, which went into service in September 1994. Additional Data and Internet capacity is needed in Latin America due to the astounding growth rates. For example, the Internet has grown faster in Latin America than any other communications medium or consumer electronic technology. Surveys of major Latin American ISPs suggest over one million Latin Americans use the Internet, with the number of Internet users for businesses and homes increasing by almost 100 percent monthly. "Americas II is designed to accommodate the surging need for state-of-the-art communications technology in the Americas Region well beyond the start of the 21st century," said Thomas McInerney, managing director for AT&T's international cable planning group. "The Latin American telecom market is valued at $36 billion and is projected to grow to over $60 billion by the year 2000. The Americas II cable will enhance MCI's support of our customers' telecommunications needs in Latin America as da!
ta and internet traffic continue to grow at staggering rates," said Seth Blumenfeld, President & COO, MCI International. "America's II will for the first time bring an unprecedented level of flexibility of use and assignment for carriers," said Malcolm Petty, assistant vice president of International Services Integration at Sprint. "This system will favorably position Sprint for the free market telecom explosion envisioned in this area for the year 2000 and beyond." The new system will consist of three rings, a north ring, west ring and south ring. The north ring will start at the landing point in Florida, then connect to the U.S. Virgin Islands. The south ring will connect the U.S. Virgin Islands to Brazil, French Guyana (including direct connections to Suriname and Guyana), Martinique, Trinidad, Venezuela, and Curacao. The west ring will connect the U.S. Virgin Islands to Puerto Rico. A southwest system will directly connect Venezuela and Curacao. This is the first time a si!
ngle cable will connect Guyana, Suriname and French Guyana. Other investors in the cable system include ANTELECOM of the Netherlands, CANTV of Venezuela, France Telecom, Telecom Italia, Telefonica de Espana, Telintar of Argentina, and Trescom International of Fort Lauderdale, Florida. The memorandum of understanding to build Americas II was signed in July, 1997. Construction of the system is expected to begin shortly. AT&T Corp. is the world's premier communications and information services company, serving more than 90 million customers, including consumers, businesses and government. The company has annual revenues of more than $52 billion and 130,000 employees. Its runs the world's largest, most sophisticated communications network and is the leading provider of long-distance and wireless service. AT&T operates in more than 200 countries and territories around the world. MCI, headquartered in Washington, D.C., is a leading provider of local-to-global communication services !
to business, government and residential users. The company's fast-growing portfolio of advanced data, Internet and IT services now accounts for nearly a quarter of MCI's $19.7 billion in annual revenue. MCI operates one of the world's largest and most advanced digital networks, connecting local markets in the U.S. to more than 280 countries and locations worldwide. MCI has agreed to merge with WorldCom, one of the world's fastest-growing communications companies. The merger, which is expected to be completed by mid-1998, will create MCI WorldCom, a company uniquely positioned in the U.S. local and long distance markets as well as the global data and Internet markets. Sprint is a global communications company -- at the forefront in integrating long distance, local and wireless communications services and one of the world's largest carriers of Internet traffic. Sprint built and operates the United States' only nationwide all-digital, fiber optic network and is the leader in adva!
nced data communications services. Sprint has $14 billion in annual revenues and serves more than 16 million business and residential customers.


CONTACT: Patricia Robinson, AT&T Jennifer Guild, MCI
908-221-8541 (Office) 914-934-6826 (Office)
888-602-5418 (Pager) 1-800-644-NEWS
pcrobinson@att.com jennifer.guild@mci.com
or
Charles Fleckenstein, Sprint
913-534-2924 (Office)
charles.fleckenstein@mail.sprint.com




To: Tom Aellis who wrote (1639)2/28/1998 2:18:00 AM
From: blankmind  Respond to of 12623
 
i know this is a slightly dated article, but would you comment on the photonic switching and its implications for cien?

SEEING THE LIGHT
Photonic switching may be a long way off or just around the corner--but it's important, and it's coming.
By Luc Hatlestad

Paradigm shift. Philosopher Thomas Kuhn's coinage has become the most overused, banal phrase in the high-tech industry--and very nearly meaningless. Yet it persists, largely through the favor of public relations professionals, who promise in barrages of press releases that this new widget is the one that will change the face of technology forever. But sometimes paradigms do shift, and on rare occasions it really is a single product or technology that brings about the fundamental change. Technologists and engineers devote their lives to creating these insanely great things. This quest is the high-tech industry's lifeblood. And it's this quest that helped create photonic switching, which really may be a paradigm shift.

The need for speed
It must be noted here that several other paradigm shifts will likely occur before photonic switching, sometimes known as optical switching, has its day in the sun. For the moment there simply are too many questions about its price and performance, and the networking industry's mainstream researchers are still tied up with Asynchronous Transfer Mode and Gigabit Ethernet. But earlier this year, when we asked a group of executives from small and midsize networking companies what they most feared (see "Switching to IP"), they told us that, like everyone else in this business, they feared a revolutionary technology--a paradigm shift--that might put them out of business. For the networking industry, photonic switching could create this sort of upheaval.

It will be at least six months, and perhaps even a few years, before the first commercial applications of photonic switching are available. The technology has yet to come up on the radar of most industry switching analysts. Although large companies like International Business Machines and Texas Instruments are committed to developing their own variations of photonic switching, The Red Herring discovered that the university research lab still is the best place to look for the technology.

Photonic switching involves storing data on photons--packets of light--and using the photons to transmit, store, and manipulate information. In its ideal form, photonic switching will greatly outperform the current electrical methods. "To this point, switching has been deployed through purely mechanical motion, but the disadvantages of this method are its comparative slowness and the unreliability of its moving parts," says Joseph Goodman, a professor at Stanford University and a cofounder of the photonic switching company Optivision (www.optivision.com).

The idea that there's a speed problem in switching might be news to those developing ATM and Gigabit Ethernet. These technologies have only recently been deployed on network backbones, reaching unheard-of speeds, and since most corporate desktop users are content with a T1 line, why the rush to light speed?

The pat answer is the Internet bandwidth bottleneck. As more people discover the Web and begin using it for games, videoconferencing, and other bandwidth-hungry applications, service providers are finding it more difficult to alleviate traffic problems and keep customers happy. Simon Fok is CEO of GigaLabs, a switching company that recently announced a Gigabit Ethernet switch with a 16-Gbps backplane. With speeds like this in an affordable switch, it's hard to see how the industry could so desperately need more, but even Mr. Fok is aware that it does. "Photonics initially has been a niche product, but we're getting to a point where it's probably the only way to get the speed you need," he says. "The applications for it are few, but they're important." Darkness before the dawn
What's currently keeping photonic switching from escaping its niche are issues surrounding price and performance. Although the technology can produce spectacular results in a vacuum, in the real world it's still contending with the problem of data loss. "Loss is always a very critical parameter in switching," Mr. Goodman says. "Early switching technology had very high losses, and its applications were limited to transmission over very short distances."

There are myriad ways to pursue optical switching with acceptable loss. One method involves pumping lasers through a tunnel, with the light forcing open a shutter at the other end. And a pet project of IBM's called wave division multiplexing (WDM) takes data from several sources and switches it arbitrarily to various destinations. Its secret is that each source has a laser with a slightly different frequency, and each receiver at the other end is tunable to that frequency.

The drawback of these approaches, and all others within photonic switching's realm, is cost. "These switches can cost several thousand dollars apiece, so only the U.S. government can afford them," Mr. Goodman says. "The problem is, the cost won't drop until the market demand increases, and the market demand won't increase until the cost drops."

This is the catch-22 that will snag photonic switching for the foreseeable future. "There's a big difference between what is possible and what is sellable," says Tom Nolle, president of CIMI, an industry consultancy. "Even if a technology is useful, it may not be economically feasible. The problem with terabit trunks, for example, is that they need terabit switches, and we're a long way from being able to pay for that."

Even evangelists like Mr. Goodman agree that the price of photonic switching will remain its biggest question mark for some time. "Although increasing the usable bandwidth of optical fiber will bring down overall costs with time, the arrival of optical switching won't be as early as has been predicted because the cost of electronic switching is also dropping," he says.

Calling on the telcos
Given that massively monied organizations like the U.S. government are a limited market, Optivision has turned its attention to the next-most-logical consumers: the telcos. Although the company's government contracts require that its officials zealously guard information about ongoing research endeavors, Mr. Goodman did say that Optivision's expansion toward the consumer arena would begin with a partnership with "a major telco." (He refused to identify the telco in question, but Optivision observers say the company has a close working relationship with American Telephone & Telegraph.)

Although cryptic in his description, Mr. Goodman says the target application for the project will enable the telco to switch all the channels in one fiber to all the channels in another fiber, a process known as multiplexing. "We think this is where the first commercial application will occur," Mr. Goodman says. "It's probably needed right now, but it won't be deployed for a year or two because development is ongoing."

He says it will be midyear or possibly 1998 before privately owned Optivision makes public its photonic development plans. "We've found a role that not everyone is aware of yet," Mr. Goodman says. "We've kept quiet because we worry about the ability of a small company to compete with a Lucent if the word gets out. But on the other hand, a good market to us may not be a good market to them."

Although details remain sketchy, observers say the telcos may be just the right target. They add that it's incumbent upon the telcos to take advantage of the technology before ISPs or some other industry does. "The technology is tied far more closely to the telcos and the cable companies than to the electronic switching vendors," says Jayshree Ullal, a vice president of the workgroup business unit at Cisco Systems. "But if telcos don't jump on optical switching as a service and it takes off, it then becomes a way for corporations not to rely on leased-line providers for their connections."

Patience, patience
But given the relative infancy of ATM and Gigabit Ethernet and the lack of urgency felt by average corporate users to upgrade their network connections, Ms. Ullal still thinks photonic switching's day is a ways off. "Every year recently has been heralded as the year of optical fiber, so this year is no different," she says. "But switching beyond gigabit speeds is still undefined. Most desktops are still at 10-Mbps speeds, and it probably will be five years before we see massive amounts of gigabit switching out to the desktop, so ideas of photonic switching are still chiefly ideas at this point."

Photonic switching may be appropriate for more than linking up the Internet. Ms. Ullal says businesses like banks could use fiber to link up their branches, or the wires could be used as a high-speed (and, no doubt, high-premium) connection between banks and telcos or ISPs. Mr. Nolle sees a possibility of embedding photonic functionality into silicon to alleviate the heat-emission problems currently faced by silicon-chip makers that are migrating to smaller manufacturing processes. If chips can be developed to send light signals instead of electronic impulses, the need for transistors, and thus the heat problems, will be eliminated.

Mr. Goodman and his cohorts don't deny the potential of photonics in these areas. In fact, Optivision does research in at least four variations of the technology. But for photonics' big splash, the company is still betting on the WAN switching arena. The advantages are photonics' speed, its potential accuracy, and the fact that because it switches light particles, it works with any pre‰xisting technology. "It's best applied over long-distance transmission networks, or on networks with a large aggregation of data, or in local networks that connect very high-performance computers," Mr. Goodman says. "It's primarily focused on gigabit speeds and beyond, but at least in the case of WDM, its time is not some undetermined point in the future. It's being deployed now."

With ATM and Gigabit Ethernet still finding (or escaping from) their niches, there may be a paradigm shift or two in the networking arena itself before photonic switching becomes widely deployed. But by now the momentum of the industry as a whole and of the Internet in particular is undeniable. More people than ever are hooking up and dialing in with increasingly powerful computers and running applications that demand more bandwidth than ever. Many solutions are out there for alleviating what is sure to become a monumental need for bandwidth, but it's going to be tough to top the speed of light.