Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: Andrew Furst who wrote (8840)	5/27/1998 12:38:00 AM
From: Sbtorres	Read Replies (1) \| Respond to of 42804

Optical Network: Noam interview on IBD More eyes - and computers - are on optical networks, which use fiber-optic lines to shuttle voice and data. Lucent Technologies Inc., Cisco Systems Inc. and Ciena Corp. are among the companies boosting their optical networking offerings. And put Chatsworth, Calif.-based MRV Communications Inc. in that group. The company recently began shipping in volume an optical product called wavelength division multiplexers. WDMs act like a prism for optical networks, increasing the number of wavelengths in the optical cables so more information can be transmitted. Optical technology speeds networks even faster than such technologies as Gigabit Ethernet or Fast Ethernet, which are the fastest forms of the most prevalent networking technology. MRV Chief Executive Noam Lotan recently spoke with IBD about the rise of optical networking. IBD: How will optical networks affect existing local-area networks? Lotan: I think the optical network will constitute the trunk line that will uplink different types of traffic in (voice- data) converged networks. Even if you look at short-range (networks running) Gigabit Ethernet, for example. Within the same wiring closet you have to run mostly fiber simply because the speed is such that it will not tolerate copper cable. Fast Ethernet you also have to run fiber. So even the traffic that is now commonplace in today's corporate networks such as Gigabit Ethernet, even that has to run over fiber at a length of 100 meters or more. IBD: What's driving the growth in optical networks? Lotan: There are a number of (things). The train is coming at us - the demand for bandwidth. What happens is that as you bring gigabit speed, you need a multigigabit pipeline. That's where the requirement for high-density optics is beginning to happen. If you want to run much higher density traffic, the cost is so high that it's cheaper to run it on fiber. That's the essence of wavelength division multiplexing. Pure electronics is becoming a lot more expensive. That's why it's cheaper to do multiple gigabit at multiple wavelengths. IBD: Is this a crucial year for fiber-optic networks to take root? Lotan: It certainly is the year of fiber. Right now, those local exchange carriers and long-distance carriers all want a piece of the action, especially when you have Level 3 and Qwest out building their fiber-optic networks. The large carriers don't want to be caught with an outdated infrastructure. I think it was Ross Perot, when he was on the board of General Motors, who said, ''How do you make an elephant dance?'' The only way to make him dance is to poke him in sensitive spots. I think what Qwest and Level 3 are doing is they're basically poking the elephant. WorldCom, AT&T and Sprint are rushing to keep up with the new kids on the block. We're seeing continued investment in infrastructure and a race between local exchange carriers and the long-distance companies to rebuild a portion of their infrastructure. The cheapest way to do it instead of laying new fiber is to get as much bandwidth as you can out of existing fiber. Instead of laying new fiber lines, that's where the technology of WDM comes in. (Analysts predict) the WDM market will rise from approximately $1 billion this year to $4 billion by 2000. IBD: When will fiber optics become commonplace in residential neighborhoods? Lotan: There will be at some point a transition, probably a gradual transition, to fiber in the local loop. Once you bring the fiber to the local loop, you can sell services where you are only limited by the end equipment at the edge of the fiber. Right now fiber is penetrating the local loop. There are already 500,000 subscribers installed. It becomes a business opportunity for the local exchange carriers. I think what we are going to see as we move forward . . . once you provide that bandwidth there will be more people putting pressure on the trunk line, which will then necessitate further upgrades. The thing with bandwidth is that once you provide it, people use it and then they need more. IBD: How does fiber play in converged networks, where voice and data are running over the same network? Lotan: The telephone system is extremely efficient in terms of quality. On the other hand, the Internet is only reliable about 60% of the time. But it's very tempting because you can packetize voice. You're breaking down your data or voice into packets. It's like Chinese food. You cut it into bite-size (pieces). Then the packets are reassembled at the receiving end. Fiber can help a lot with quality. The question is now between the 60% quality level of the Internet and the 99.999% of the phone system. How much is acceptable to the consumer? It's a question of (getting) what you pay for. If you want to have a high level of quality, you stick to telephone service. //////////////////////////////////////////////////////////// Copyright (c) 1998 Investors Business Daily, All rights reserved. Investor's Business Daily - Computers & Technology (05/27/98) Voice And Data Give Networks Fiber Appetite By Michele Hostetler Transmitted: 5/26/98 4:45 PM (p0acorie)