Summary
1. Cisco Systems has limited proficiency in fiber optic systems. 2. Nokia-Siemens Networks has plenty of experience including with 40G equipment. 3. NSN’s large installed base at AT&T of high-end optical gear is probably the major factor in the decision for the two suppliers to reach an agreement.
Analysis
It would be surprising if AT&T did not signal to the vendors that it has an interest in going with an IPoDWDM approach. A common management system between the DWDM transport and the router cards will be a key advantage. In addition, in this case, the focus is on the 10G rate, in which AT&T may have more of an inclination than other carriers to stay at in general, and use muxponders to get to higher capacity levels. Moreover, while AT&T has been deploying 10GbE in the metro for quite a few years, it is only just starting to do so it in the long haul. A new application may make a different architecture design more feasible.
At this time, Juniper is definitely looking at anything to give it additional “stickiness” at AT&T. One problem with a partnership approach from the carrier’s point of view is more generic in nature. If any problems arise, there is the possibility of finger pointing between the vendors.
