Underscoring the invaluable role of fiber as the backbone of ultra-broadband and 5G networks, Italian energy and telecom cables systems provider Prysmian today disclosed a three-year, $300 million contract to supply Verizon with fiber.
The move comes less than three weeks after Verizon inked a $1.03 billion contract to purchase fiber optic cable and related hardware from Corning. The two deals suggest Verizon -- at least for now -- has decided building out more fiber itself is the better option than acquiring it from other companies in the quest for fiber backhaul. (See Verizon's Fiber Spend Won't End with Corning.)
"This strategic supply agreement helps ensure we can ramp supply in order to expand our network capacity and speed 5G deployment," said Viju Menon, Verizon's chief supply chain officer, in a statement.
In each case, Verizon will use the acquired fiber-optic cable as part of its continued expansion of a fiber platform designed for 5G deployment, to enhance 4G LTE wireless and empower the service provider to deliver additional broadband offerings. The contract also demonstrates Verizon's commitment to NG-PON2, said Philippe Vanhille, senior vice president of telecom at Prysmian Group, in a statement.
"Both Prysmian and Verizon feel strongly that demand and supply for the next-generation passive optical network (NG-PON) will last well beyond 2020 as new technologies like 5G and the IoT become reality," he said.
NG-PON2 allows service providers to mix-and-match vendor equipment on the network, said Vincent O'Byrne, director of technology, in an interview with UBB2020 earlier this month. "We can assign different wavelengths to one vendor, then another, so you can have for example, Calix and ADTRAN on the same fiber, supporting different wavelengths, going to different customers," he said. "It offers us an awful lot of flexibility which reduces the outside plant sizing."
To support the contract, Prysmian plans to expand its operations in the United States. It currently operates three plants; one produces optical fiber, while the other two produce optical cable. The new US-based operation will work with material-management services from partners that are owned and operated by certified woman-business enterprises, Prysmian said.
Deutsche Telekom just signed an infrastructure project with the Gigabit Region Stuttgart, home to 174 municipalities and almost 3 million people, one of many partnerships the German operator has inked in its bid to grow revenue and business.
In this insightful Light Reading radio show, Kurt Raaflaub, Head of Strategic Solutions Marketing, will outline the key service provider challenges, deployment considerations, next-gen Gigabit technologies, and service models to win market share in the rapidly growing MDU market.
The MDU market continues to face fierce competition among service providers due to tech-savvy residents (i.e., millennials), demand from building owners and management companies, plus the favorable economics of bulk contracts. However, no MDUs are the same, so service providers must use multiple technologies and inconsistent deployment models, increasing operational complexity and rollout costs.
The MDU market itself is evolving as residents adopt smart-home technologies, generating rising demand for smart apartments with built-in connected thermostats, keyless entryways and doors, and video doorbells. This evolution presents both new challenges and opportunities. In other words, service providers must consider innovative service-delivery strategies to compete and win.
In this Broadband World News and ADTRAN webinar, Kurt Raaflaub, Head of Strategic Solutions Marketing, will highlight emerging MDU broadband Internet trends and challenges. In addition, Kurt will outline the next-generation service creation and delivery platform, built on open standards, that allows service providers to connect millions of underserved MDUs, enables creation of user-driven services, and reduces operational complexity and costs.
Plus, special guest, Alice Lawson, Broadband and Cable Program Manager for the City of Seattle, will discuss Seattle’s B4B-Build For Broadband initiative that addresses best practices in planning for MDU telecommunication infrastructure.