On the R-OADM to The Lightwave Network

SUMMARY

Overview:

We have been writing about R-OADMs and their coming importance almost since the beginning of the technology. This is the fourth R-OADM report in our Lightwave series. Four years ago, we prepared our first report on R-OADMs - "R-OADMs - the Lightwave under Control." At the time, very few authors were writing much about R-OADMs. As stated in that report it was, "... a report about a device that did not exist; whose technology was unselected; and whose market was very unclear." Now in mid-2006, the R-OADM has become a standard part of long-haul networks - to be included as a matter of course in any new network, and they are rapidly becoming a major update objective for existing networks. They are also becoming of importance to metro networks. In addition to the maturity of application, R-OADMs have also developed a third generation technology base - the Wavelength Selective Switch (WSS) that has quickly become the 'gold standard.'

This is a complete update of our earlier reports with an emphasis on WSS, and how the WSS technology approach to R-OADMs will facilitate the interconnection of multiple networks. The interconnection of long haul and metro networks takes on a new importance with the SBC-ATT-BellSouth and Verizon-MCI mergers. This report contains completely new forecast scenarios, expanded technical material, many added vendors, and updates on deployment activities since the previous work. It also includes new material on Wavelength Selective Switches, and many more figures, explaining the various types of approaches available for R-OADMS. This is a completely stand-alone report, containing all of the background material from the earlier reports.

The existing IXC networks, at almost every level, are conglomerates of various generations and types of technologies. To an extent, this has always been the case, but now it is more so than ever, because of the timing of the telecom burst. Telcos (and others) were just in the beginning stages of implementing the new optical technologies (DWDM, optical switches, M-DWDM) when the burst occurred. We now have 'stacked SONET' residing along side DWDM and in some cases, those are along side some version of 'god boxes,' and maybe enhanced SONET. Capital constraints prevented the initiation of any real replacement program for the older technologies. In addition, while we have been in a deep freeze as to investment, technology and product advancements have continued. Capital started loosening up in late 2004 and clearly in 2005. This year (2006) appears to have brought a greater loosening of the capital strings. However, there is still a strong pressure for profitability, demanding expense containment.

In addition to this delayed updating of the IXC networks, the early days of 2005 brought a spate of acquisitions (SBC-AT&T and Verizon-MCI) that will all but eliminate the independent IXC business. The later merger announcement of AT&T and BellSouth has served to accentuate the trend. While these mergers offer many economies of scale, they also bring together existing disparate networks. Both AT&T and Verizon will want to consolidate their existing networks with their recent purchases. They will seek operational efficiencies, and elimination of duplication.

This integration will ultimately be based on elements like ROADMs, next generation DWDM, next generation SONET and optical switches. It will be directed at making the network more flexible, more reliable, and less labor intensive. In addition, the combined RBOCs are both in progress on deploying national networks for the delivery of video. These networks will be the largest deployment to date of R-OADM technology, and will thus become the single largest driver to the R-OADM market. Indeed, we are now on the road to R-OADM based networks!

This report will describe the R-OADM, its potential applications, underlying technologies, market drivers, the market potential with detailed forecasts (both for systems and for components), and the vendors involved in the market.

This is an update of earlier reports on the same subject from IGI. This report contains completely new forecast rationale, expanded technical material and updates on deployment activities since the previous work. In addition, its focus is on Wavelength Selective Switches, which has become the gold standard of R-OADMs. This report contains many more figures, explaining the various types of approaches available for R-OADMS and expands on application material, particularly multi-degree node interconnections. This is a completely stand-alone report, containing all of the background material from the earlier report.

Most importantly, this report focuses on how the 2005-2006 acquisitions by the RBOCs will influence this market., and how the video delivery networks resulting from these mergers will become the major R-OADM driver.

TABLE OF CONTENTS

TABLE OF CONTENTS

TABLE OF FIGURES

THE LIGHTWAVE NETWORK SERIES OF REPORTS

EXECUTIVE SUMMARY

INTRODUCTION

• The Lightwave Network
• Achieving SONET-like Control in Optical Networks
• This Report

R-OADMS

Types of R-OADMs

• OXC Based Approach to R-OADMs
• PLC Based R-OADMs
  • Colorless vs. Colored Ports
  • Other Names
  • Benefits and Problems with PLC R-OADMs
  • Vendors of PLC R-OADMs
• Blocker Based R-OADMs
  • Other Names
  • Alternative Designs for Blockers
  • Problems with Blocker-Based R-OADMs
  • Vendors of Blocker R-OADMs
• Wavelength Selective Switch (WSS) Based R-OADM
  • Other Names
  • Vendors of WSS R-OADMs
  • Problems and Benefits of WSS ROADMs

Summary of R-OADM Types

Summary of R-OADM Description

R-OADM APPLICATIONS

Typical EDFA Site Replacement - A Degree Two Node

Approaches to the New RBOC-IXC Merged Network Examples

The WSS Solution to Joining Rings

R-OADM MARKET DRIVERS AND FORECASTS

• Market Drivers
  • Opex Savings
  • The RBOC-IXC Merger Driver
  • IPTV Networks
  • Vendors of the IPTV Networks
    • AT&T
    • Verizon
    • Comcast
• Wavelength Services

Market Forecast

• Forecast Methodology
  • Model for Forecast
    • Assumptions of Model
• Systems - US Forecast
  • US Market Forecast
• Systems - World Forecast
  • World Market Forecast
• Components
  • Assumptions for Component Forecasts
  • Pricing for Components
• Components - US Forecast
  • Blocker US Market Forecast
  • Mux/Demux US Market Forecast
  • Tunable Laser US Market Forecast
  • Tunable Filters US Market Forecast
  • Switch Points US Forecast
  • Monitor Points US Market Forecast
  • WSS Units US Market
  • Total Components US Market Forecast

Components - Global Forecast

• Blockers Global Market Forecast
• Mux/Demux Global Market Forecast
• Tunable Laser Global Market Forecast
• Tunable Filter Global Market Forecast
• Switch Points Global Market Forecast
• Monitor Points Global Forecast
• WSS Units World Market
• Components Total Global Forecast

R-OADM VENDORS

Component/Sub-Assembly Vendors

Component/Subassembly Vendor Listing

• AC Photonics, Inc.
• Active Optical Networks, Inc.
• Aegis Semiconductor, Inc.
• Agiltron, Inc.
• Alliance Fiber Optic Products
• ANdevices
• AOC Technologies
• Auxora, Inc.
• Avanex Corporation
• Avo Photonics
• Capella Photonics
• CoAdna Photonics
• Corning
• Corrigent
• Cube Optics AG
• DiCon Fiberoptics
• DuPont Photonics Technologies
• Emit Technology Co. Ltd.
• Engana Pty. Ltd.
• Fibernett. Co., Ltd.
• Finisar Corporation
• FOCI Fiber Optic Communications, Inc.
• Guangzhou Yongda Optical Comm. Tech. Dev
• Hitachi Chemical Co. America, Ltd.
• Hitachi Cable
• Hitachi Metals America, Ltd.
• Infineon Technologies
• Inplane Photonics, Inc.
• Intel Corporation
• JDS Uniphase
• Kaiser Optical Systems, Inc
• Kamelian
• Lambda Optical Systems
• LightComm Technology
• LIGHTCONNECT, Inc
• Lightwaves 2020, Inc.
• Lynx Photonic Networks
• Mahi Networks
• Metconnex
• NeoPhotonics
• Network Photonics (Not in Operation)
• O-Net Communications Ltd
• Oplink Communications, Inc.
• Optiviva Inc.
• OpTun Inc.
• Optoplex
• Osaki Electric Co., Ltd.
• Paxera Corp.
• Polychromix
• Redfern Optical Components Pty Ltd
• SDO Communications Corp.
• Shenzhen Hi-Optel Technology Co. Ltd.
• Sinclair Manufacturing Company
• Silicon Light Machines
• SpectraSwitch
• Stratos International, Inc.
• TeraXion Inc.
• TheFibers Inc.
• Topfiber Technology
• TransOptix
• Valdor Fiber Optics
• Xerox
• Xtellus

System Vendors

System Vendor Listing

• Adva Optical Networking's
• Alcatel
• Ciena
• Cisco
• Corvis (Broadwing)
• ECI
• Fujitsu
• Infinera
• Lucent
• Mahi Networks (formerly Photuris) - Meriton
• Marconi Corporation plc
• Meriton Networks
• Movaz Networks (ADVA)
• NEC America Inc.
• Nortel
• Tellabs
• Tropic Networks

APPENDIX I - R-OADMS AND OTHER SWITCHES - A TAXONOMY

Switches by Any Other Name

• "Switch" Types
• Classes of Transparent Optical Switches
  • FXC
  • WSXC
  • WICX (Wavelength Independent Cross-Connect)
• Routers
• TDM Switches
• ATM
• IP Switches
• DACS

DACS/R-OADM Relationship

• Drivers to DACS Deployment

ADMs - The Key SONET Functionality

• OADMs

APPENDIX II - TECHNOLOGIES FOR R-OADMS

Switches and Blocker

• MEMS
  • Approaches to MEMS
    • Digital Approach
    • Analog Approach
    • One Dimension MEMS
• Grating Light Valve (GLV)
• Liquid Crystal
  • LC Uses
• Fiber Bragg Grating

Mux/Demuxes

• AWG Devices
• Etched Waveguide Devices (Planar Waveguide Devices)

Tunable Lasers

Monitor Points

Technology Summary

• Summary of Features by Class
• Importance of Tunable Lasers
  • Developers and Vendors of Tunable Lasers
• Tunable Lasers Vendors List
  • ADC
  • Altitun AB
  • Alcatel
  • Bookham (New Focus, Inc.)
  • Corning
  • Hewlett-Packard
  • Intel
  • JDS Uniphase
  • Marconi
  • Nortel
  • Novalux
  • Paxera
  • Pirella Broadband Systems
  • Santur

APPENDIX III - LISTING OF ACRONYMS

Table of Figures

• Figure 1, Lightwave Network
• Figure 2, R-OADM General Configuration
• Figure 3, Fully Switched Approach to OADM
• Figure 4, PLC Based R-OADM
• Figure 5, Detailed 'Blocker' R-OADM Architecture
• Figure 6, Alternative M-Z Diode based Broadcast R-OADM
• Figure 7, WSS Structure
• Figure 8, WSS Based R-OADM
• Figure 9, WSS-Based Multi-Degree Node Interconnection
• Figure 10, Typical Blocker R-OADM
• Figure 11, WSS Added to Blocker
• Figure 12, Summary Chart of R-OADMs
• Figure 13, Three-Amp DWDM System
• Figure 14, 3R Intermediate Access Solution
• Figure 15, Use of R-OADM for Intermediate Site Access
• Figure 16, Degree Three Node Example
• Figure 17, Joining Two Rings
• Figure 18, Using Core Routers in Degree Three Nodes
• Figure 19, Using an OXC in a Degree 3 Node
• Figure 20, Using an R-OADM for the Degree Three Node
• Figure 21, Using R-OADMs for Joining Rings
• Figure 22, WSS Approach to Interconnecting Rings
• Figure 23, IPTV Video Network
• Figure 24, Forecast for Wavelength Services
• Figure 25, R-OADM System Unit Forecast - US
• Figure 26, US Market - Change in Predominant Type of ROADM over Time
• Figure 27, Price Forecast for R-OADMs
• Figure 28, R-OADMs Market Forecast - US
• Figure 29, OADM vs. R-OADM Market - US
• Figure 30, US R-OADM as a Percent of Global Usage
• Figure 31, R-OADM Systems - Global
• Figure 32, World Market - Change in Predominant Type of ROADM Over Time
• Figure 33, R-OADM Market Forecast - Global
• Figure 34, Comparison to Other Analysts' Forecasts
• Figure 35, Sensitivity Analysis - R-OADM Market - US
• Figure 36, Small Switch Version of the R-OADM
• Figure 37, Broadcast Version of the R-OADM
• Figure 38, WSS Typical for Component Count
• Figure 39, Component Count for Each Type of ROADM
• Figure 40, Component Price Table
• Figure 41, Components - US Units
• Figure 42, Blocker US Market Forecast
• Figure 43, Mux/Demux US Market Forecast
• Figure 44, Tunable Laser US Market Forecast
• Figure 45, Tunable Filters US Market Forecast
• Figure 46, Switch Points US Market Forecast
• Figure 47, Monitor Points US Market
• Figure 48, Total Components US Market Forecast
• Figure 49, Components Units Global Forecast
• Figure 50, Blocker Global Market Forecast
• Figure 51, Mux/Demux Market Forecast
• Figure 52, Tunable Laser Global Forecast
• Figure 53, Tunable Filters Global Market Forecast
• Figure 54, Switch Points Global Market Forecast
• Figure 55, Monitor Points Global Forecast
• Figure 56, Components Total Global Forecast
• Figure 57, Summary Table - Sub-system Vendors
• Figure 58, Summary Table - System Vendors
• Figure 59, R-OADM Concept
• Figure 60, Example of FXC Class Fiber-to-Fiber Application
• Figure 61, Example of FXC Application at 1310 nm
• Figure 62, Example of WSXC Application
• Figure 63, Example of WICX Application
• Figure 64, SONET ADM
• Figure 65, OADM
• Figure 66, Improved OADM
• Figure 67, OADM with Limited Switching
• Figure 68, Detailed PLC R-OADMs
• Figure 69, Detailed Blocker R-OADM
• Figure 70, MEMS Layout
• Figure 71, Sketch of Two Dimensional MEMS
• Figure 72, Sketch of Multi-Dimensional MEMS
• Figure 73, 1D MEMS
• Figure 74, Sketch of Liquid Crystal Technology
• Figure 75, Planar Waveguide Demux
• Figure 76, Technologies' Summary
• Figure 77, Table of Switch Classes - Summary of Features
• Figure 78, Example of Use of Tunable Laser in Transparent OXC