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NG-PON2 Tunable Optics Prices Too High for Nokia![]() NG-PON2 tunable optical component pricing has not dropped enough for the next-gen network technology to become a viable market, and time may be running out, according to a top Nokia fixed-access executive. Combined, tunable optical components alone represent 10x or even 20x -- close to $1,000, Stefaan Vanhastel, who heads global marketing for Nokia Fixed Networks, told Broadband World News at Fiber Broadband Association's Fiber Connect event in Orlando this week. And while the technology itself has promise, cost makes it price-prohibitive for practically all service providers, he said. "The use cases are very interesting. If the cost comes down, it has a market," said Vanhastel. "It's a chicken or the egg situation." It could be more of an "if versus when" for NG-PON2 for some operators, depending on their willingness to pay for tunable optics, he said. That's because fixed access competitors are aligning themselves behind a competing new direction to follow after XGS-PON or NG-PON2, Vanhastel added. In March, Heavy Reading Contributing Analyst Dan Grossman noted that early production tunable ONT transceivers reputedly sold for about $150, compared with $7 for GPON, and cost much more to manufacture. Most of the world's operators -- including China Telecom, China Mobile and China Unicom -- are testing or deploying 10G EPON or 10G PON, said Julie Kunstler, principal analyst, Service Providers, at Ovum in a call with BBWN. "Consequently, the forecast for 10G PON equipment -- both OLTs and ONTs/ONUs -- is much larger than it is for the NG-PON2 equipment market," Kunstler said. "In access, volumes drive down costs. While costs will drop for both NG-PON2 and 10G PON, it will be difficult for NG-PON2 prices to drop to the same levels as we are forecasting for 10G PON." Several operators, most notably Verizon and CityFibre, are testing or deploying NG-PON2, working with partners Calix and ADTRAN. In January 2018, Verizon announced it had begun commercial deployment of an NG-PON2 network in Tampa, Fla., based on Calix solutions. "Calix has done a great job at winning NG-PON2 deployments at Verizon," said Ovum's Kunstler. "This is a major Tier 1 win for Calix." NG-PON2 will be a less mainstream selection for the next few years, a 2018 Dell'Oro Group report suggested. While the researcher predicts XGS-PON will reach $1.034 billion in sales by 2022 versus 2017 sales of $16 million, NG-PON2 is expected to hit only $204 million compared with $5.9 million in 2017. (See Next-Gen PON: $7B Market by 2022.) Related posts:
— Alison Diana, Editor, Broadband World News. Follow us on Twitter or @alisoncdiana.
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In a flurry of activity throughout the week, Donald (DJ) LaVoy, Deputy Under Secretary for Rural Development at the US Department of Agriculture, and his team spent about $145.8 million in the non-urban or suburban areas of seven states.
Calix reported revenue of $120.19 million – up 4% – in Q4 2019, putting a bounce in the step of company president and CEO Carl Russo and a shine to Calix's ongoing transition from hardware vendor to a provider of platforms enabled by cloud, APIs and subscriber experience.
Looking to curtail e-waste and improve the bottom line, BT will require customers to return routers and set-top boxes, although subscribers will not have to pay a fee when they receive regular broadband equipment.
The industry standards organization is looking to ease operator pain from residential WiFi, while it also sees initiatives in connected home and other projects bear fruit.
Deploying DOCSIS 3.1 across its entire footprint gave Rogers Communications the ability to offer speeds of up to 1 Gbit/s,
contributing to a broadband segement that generated about 60% of the Canadian operator's $3.05 billion (US) in Q4 cable earnings.
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Thursday, December 17, 2020
12:00 p.m. New York / 5:00 p.m. London Today’s access network architecture is under mounting pressure due to a continued surge in the number of connected devices, a proliferation of bandwidth-intensive customer applications and dramatic shifts in usage patterns related to the pandemic, such as work-from-home and e-learning. Learn why now is the right time for cable operators to build greenfield networks or expand their existing networks with 10G PON, arming customers with high-speed symmetrical broadband. Gain a clear understanding of the drivers impacting the access network and the various approaches being considered to deliver higher speed services. Plus, find out the best practices that operators are employing as they leverage the latest in passive optical technology to future-proof their networks. Topics to be covered include:
Partner Perspectives - from our sponsors
The 'Agile Titan' – an Advanced Supplier Model to Meet the Needs of 21st Century Networks
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What Service Providers Should Know About WiFi 6
By Greg Owens, Senior Director, Product Marketing, Calix |
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