Chalk one up for PON: Quantum Bridge wins deal with ATG

Passive optical networking got an ego boost last week when service provider Advanced TelCom Group revealed it would use Quantum Bridge's equipment to provide high-bandwidth services to business customers.

Valued at $50 million, the deal is a testament to the viability of PON as an access technology and the validity of optical access. ATG will deploy Quantum Bridge's optical access system to its 56 Tier 3 and Tier 4 cities. The system consists of the QB5000 optical access switch, which sits at the central office, and the QB100 intelligent optical terminal, which sits at the customer premises and transmits data across a passive optical network. ATG plans to roll out the system first in Santa Rosa, Calif., and then head for the East Coast.

ATG decided to use the Quantum Bridge solution because it allows dedicated access over a shared fiber, said Curt Wheeling, chief technology officer for ATG.

"We were looking for a way to deploy fiber to office parks and campuses. Putting in Sonet was not the way to go," he said.

The contract is a big win for Quantum Bridge because it proves the product is real and it works, said Andrew McCormick, senior analyst of optical communications for The Aberdeen Group.

"There has been speculation and doubt about PON and questions about whether or not it is really applicable in the network," he said. "This answers a lot of those questions."

But Quantum Bridge is not putting all its eggs in the PON basket, said Jeff Gwynne, vice president of marketing for Quantum Bridge. The company will introduce the second release of its product in September and plans to roll out two non-PON-related products next year.

"PON was a great entry for us, but we want to go into more products, more applications and more customers," he said.

With PON's limited reach, the company has to take a broader view of the optical access market to play in the bigger access arena, McCormick said. "They aren't going to cut loose PON completely; they're looking for a long-term technology," he said.

ATG is relying on the new product development for its growth as well, Wheeling said. "With what Quantum Bridge has next on the product development plate, we have a great future," he said.

In addition to product development, Quantum Bridge is investing in its future by forming the Quantum Bridge Access Alliance to broaden service offerings. Integrated access devices (IADs) are the alliance's first step. "We enhance the value of our transport solution by adding the IAD partners," said Scott Conner, director of business development for Quantum Bridge. "This will allow service providers to manage their customer