BT Might Play Musical Chairs with Optical Vendors

Implications: 1.      There are signs at British Telecom that it has been frustrated with Huawei regarding optical transport systems. 2.      It is not out of the question that the Chinese giant could be com pletely knocked out (at least in this particular space) at BT. 3.      Both Ciena and Infinera are in the running to displace Huawei.

Analysis:  Apparently, British Telecom has become disenchanted with Huawei in terms of supporting its transmission infrastructure products.  There are rumors that the products are quite as advertised. 

A pullback at BT would obviously be a major blow to Huawei because the supplier (with no incumbency) became a preferred vendor for the carrier’s 21CN project for transport and other gear.  The win has been considered a key stepping-stone to other potential service providers outside of Asia. However, you can be sure that Huawei will not fade into the sunset quietly. 

As with other PTTs, Infinera is putting on a full-court press in getting into BT.  Earlier in the year, there was some speculation that the vendor was going to get a deal with the telco.  It is likely that Infinera is going to try to undercut Ciena on price.   

The situation for Ciena at BT is exceptionally good right now with a contract that remains solid  The carrier has been very pleased with how the products from its incumbent vendor work including the 4200 and the CoreDirector.  Evidently, there have not been any major problems with Ciena’s equipment – and any trouble was serviced in a timely fashion.