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Where Would NYC be on Fiber to the Home Without Verizon?

June, 2015

While fibeReality will never be an apologist for any corporation, the current attacks on Verizon regarding the reputed insufficient amount of Fiber To The Home (FTTH) activity in the city of New York are just unfair. Unlike Google, which currently appears to be concentrating more on making announcements on FTTH rather than actually deploying anything, no other firm other than Verizon has come close to spending the billions of dollars to connect fiber to residential customers in the United States. While Verizon will compete aggressively to protect its assets from competitors, the fact of the matter is that the city would probably have now have been at least a decade behind in getting fiber to homes without the service provider’s actions over the last several years.

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Avago’s Spinoff of Optics in Short Term?

August, 2015

While for now, Avago Technologies will be preoccupied with the immense and time-consuming effort of its integration process with Broadcom, not too long afterwards, it would not be surprising if there would be a spin-off that would include a large number of the combined company’s optical networking assets. The progressive shift from a technology-focused firm to one that is more business-oriented should inevitably go beyond just making further sizable acquisitions, but to improve the balance sheet through aggressive divestment. Although KKR does not hold a stake in Avago anymore, we believe the supplier has been heavily influenced by the private equity firm’s modus operandi – purchase assets, find value, package parts, and sell off. One may easily presume that calling the merger, “Broadcom” instead of “Avago” probably has significance for its future technology...

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Calix’s CEO Still at Top of His Game

February, 2016

Over the last 15 years or so, a lot of great executive talent has left the telecom/datacom optical space either because they made a killing during the bubble, it became time for them to retire, or perhaps they had the good sense to get out of an industry in which it can be extremely difficult to make money. One notable exception is the CEO of Calix, Carl Russo, who rather quietly has continued to use his exceptional skills in a fairly successful way to execute on a very focused business strategy in the space. While like any leader, he has his share of imperfections, Calix has been a company that reflects the best characteristics of the man himself, a solid identification with integrity and credibility, often sorely lacking in our business. When Cisco Systems bought Cerent at an incredibly high...

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Nokia Directionless in Optics Space

September, 2016

An industry observer might ask a Nokia executive about its plans for 400G and there is a good chance that the response is more likely to be a general one reflecting a lot of uncertainty over what major moves to make in the optical marketplace. The commodity-like atmosphere affects other large vendors in the space as well with limited opportunities to differentiate with value-added software in the vast majority of the business. Yet, given its roots, culture, and organization, Nokia is uniquely searching for options that are likely beyond its reach or may just not turn out to be that attractive for future growth. Some of Nokia’s loss of market position has been self-inflicted. During Verizon’s unprecedented push with GPON, the supplier was the dominant force. With NG-PON2, it appears that the vendor may not even get a seat at the table for Verizon’s next big push, which...

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If Verizon Has Vague Rationale, Think FCC

September, 2016

For Verizon, there has been the matter of a tremendous buildout of Fiber-to-the-Home (FTTH) infrastructure in the past, which was clearly cost prohibitive, or more recently, supposedly picking up this activity with solutions that do not make sense technically. There have also been the head-scratchers on the purchases of both AOL and Yahoo, the former we addressed over a year earlier. They all have one aspect in common. They are either a means of finding additional ways of obscurely taking fuller advantage of FCC rulings that are favorable to the service provider or of finding an outlet of escape from those regulations unfavorable to the company. During the last decade, Verizon appeared to be justifiably criticized by analysts on the Street and others for its massive construction of FTTH, particularly at the beginning of the process. The economics were not justifiable and there...

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