Summary
1. The shortcomings of Cisco Systems’ “method of IP-over-DWDM” have been known for a long time. 2. Having “transponders get integrated into the router, isn't the answer.” 3. We have written extensively about the problems that Sprint has experienced with this solution.
Analysis
Verizon has realized that the Cisco Systems method is not cost-effective for its network. Deploying IP routers ubiquitously would not be a good fit in its large optical network. How does one deal with the TDM traffic that is still around? Cisco does not offer a broadband DACS system. In addition, its knowledge of DWDM and optical technology in general is nothing to write home about. And the operations people at Verizon would probably not be crazy about having transport embedded into its routers.
Most importantly, Verizon would probably not get even near any type of fiber optic products from Cisco. The RBOC’s prior experience with the supplier’s SONET offerings probably left a lot of bad memories.



