NXTcomm08

ECI Adds Features to Bolster XDM’s Metro Edge Value Proposition

| Jun 17, 2008 | Optical Infrastructure | Show Update

| Analyst: Jason Marcheck

Current Perspective: Positive/Neutral Vendor Importance: High Market Impact: Low/Moderate

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Event Summary

June 16, 2008 – ECI announced the launch of two-degree ROADM and ADM-on-a-card capabilities for its XDM optical transport product portfolio aimed at enhancing network flexibility at the metro edge. The two degree ROADM is designed to enable more cost effective, albeit more limited, wavelength reconfigurability, while the ADM-on-a-card feature allows MSPP capabilities to be deployed directly on a WDM platform without requiring a separate network element.

Analytical Summary

• Current Perspective: Slightly positive on ECI’s adding two-degree ROADM and ADM-on-a-card capabilities to its XDM optical transport portfolio. While both features add undeniable value to ECI’s metro optical value proposition, the features are becoming increasingly common on competing optical platforms. Nevertheless, the new features should make the XDM solution, if not ECI’s entire 1Net framework, more attractive to current and potential customers.

• Vendor Importance: High to ECI, because both features, especially two-degree ROADM, are rapidly becoming extremely valuable, if not essential elements of a successful metro WDM transport offer. By enhancing its XDM portfolio with these new features ECI demonstrates its continued commitment to keeping its optical portfolio in-line with emerging carrier requirements, and well positioned to defend its status as a growing optical player in emerging markets.

• Market Impact: Low to moderate on the optical infrastructure market, because while the newly announced features, particularly ADM-on-a-card capabilities are not novel, they are also not exactly universally supported. To this end, while ECI cannot claim to be a market leader in this regard, it certainly can make the case that its XDM portfolio has taken a comprehensive approach to helping operators overcome pain points in their optical networks throughout the entire metro network. In turn, this helps to position the XDM product line well against rival vendors that cannot offer these OpEx saving features.

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