World Wide Packets Far Out on Learning Curve on PBT

Implications: 1.      PBT has really only been around about a year or so. 2.      While WWP never really offered anything earth-shattering, it did have an early implementation of a PBT solution. 3.      While there continues to be uncertainty about the industry moving towards PBT in general, Ciena needed to have the fullest Ethernet product line with this capability.  

Analysis:  As the source article implies, Ethernet is not going to take over networks where SONET dominates today.  However, there is an expectation that there will be a lot more Ethernet connections at Verizon and at other carriers.  

Any concerns about scalability regarding PBT are only from a long-term standpoint.  The technology from WWP is supposed to only tie into the PBB, adding on an additional header on the front end of it, allowing the carrier to extend beyond the backbone into the access areas.  

WWP bolsters Ciena’s total Ethernet offering of PBB-TE, which goes beyond what the latter is OEMing from ANDA.  It is moving from copper-centric access devices to optical-based gear.  

The rumored involvement by Nortel in the WWP bidding process more than suggests that it is looking to hedge its bets on the future of its version of PBT.