Pondering E-PON

World Wide Packets' recent contract win with British Telecom for active Ethernet fiber-to-the-premises gear (see story below) invites renewed examination of RBOC FTTP strategies. Although RBOCs have so far embraced BPON, an ATM-based passive optical networking technology, for their initial attempts at the FTTx market, some vendors are hopeful that RBOCs will eventually broaden their scope to include E-PON technology (as Hitachi Telecom USA CTO David Foote told me in this interview).

Various arguments support the idea: For one, widespread use of E-PON in Japan (and now active-Ethernet FTTP in the UK) could drive the cost down. One of the arguments Nayna makes (read it here) is that high-definition television will lead consumers to require more bandwidth than B-PON can supply. Others simply say that FTTP is not a homogenous operation. One size does not fit all.

At least one RBOC has been unambiguous on the subject. At the OFC show in March, SBC senior vice president Chris Rice told me, "I'd like to see IP and Ethernet all the way." But when the RBOCs examined PON systems last year, "We were looking for something that's deployable now. No one had a deployable Ethernet solution." That may be changing.

Last week another startup vendor, Nayna Networks, brought its Ethernet triple-play gear out of stealth mode. Another vendor, which I can't name, will do the same within the next few weeks. In a research note yesterday, Lehman Brothers analyst Steve Levy speculated about Lucent Technologies' prospects in the domestic broadband access market. Lucent is betting on VDSL in fiber-to-the-curb-type architectures, Levy said, but the vendor may also be eyeing the FTTP market with the goal of introducing Ethernet-based FTTP gear. A major vendor such as Lucent could add formidable credibility to the space and lead a shift in RBOC deployments. But the question continually dogging E-PON is: When?

Heard any optical gossip? E-mail me at egubbins@primediabusiness.com.