TXP Corporation (fka TXPO)

[jmack3265]

Thanks Walter. Pretty much what I suspected. Avensys appears to be working their way to "Next Generation" manufacturing WDM components IMO. To the best of my knowledge, DPSK is a digital modulation scheme that determines the phase of the received signal in WDM. The operative phrase in the reply you received was:

"ITF Labs has invested in the development of a new, more cost-effective generation".

I believe what they are telling you is that Avensys is developing a more cost-effective generation of DPSK units called micro-DPSK to increase capacity so to speak through Wave Division Multiplexing "WDM". This is just one of a number of enabling technologies being worked on. Currently Time Division Multiplexing (TDM) via real time protocol packets is being used that can obtain 10Gb/s. Combining TDM with WDM they will be able to achieve 40Gb/s.

My understanding is the technology is there and actually has been there for awhile. The challenge for the component manufacturer like Avensys is to take this technology, reduce component costs in order to achieve commercial viability. By example, when you read about fiber-optic networks they talk about a future progression from 2.5Gb/s currently deployed to 10Gb/s to 40Gb/s to 100Gb/s of increased capacity or bandwidth to be able to handle the future demand of HDTV, IPTV, etc. in a converged network or in other words everything (voice video data) tied into a home/office gateway. As the demand for these products and services increase so does capacity or bandwidth. The winner being what components deliver the most bandwidth at the least cost.

Conversely the challenge for the service provider IE Verizon is how much capacity/bandwidth to deploy and how much is enough looking out 5-10-15-20 yrs. and beyond. This is the thought process behind deploying FTTH VS FTTN at present. The fastest stream deployed now using TDM is 10Gb/s. You can see where TXP incorporates TDM in their SBU/CBU/MDU/MTU ONTs. This presents a big question in that how far will 10Gb/s take us and for how long. Especially in economic times like this where CAPEX is being cut. I have no doubt that at some point in the future 40Gb/s and more will be needed but when?

Another dilemma for the service provider that directly affects the component manufacturer is, I have to deploy a fiber network to be competitive. What the heck do I deploy or am I better off waiting awhile for WDM/DWDM to mature and costs come down in order to future proof my network? This is why Alcatel-Lucent among others are looking into several different modulation models to be able to interweave 10 Gbit PON with existing 2.5 Gbit PON now.

In my view there are obvious advantages in WDM/DWDM in terms of speed/bandwidth and the effective distance the optical signal can travel. Currently the distance is approx. 20 km but with WDM/DWDM & Erbium Doped Amplifiers the distance increases to 60-120 km. That's a very significant difference not only in distance but also in network operational costs and end users per fiber. First they have to get the component costs down to make it commercially viable as validated in the reply you received. Remember Walter this is all guesswork on my part based on my interpretation but I am starting to feel more confident and hopefully getting somewhat of a grip on this stuff.
http://www.iec.org/online/tutorials/opt_trans/topic06.asp