Optimum Lightpath Debuts 40 Gbps Wavelengths Network-wide, Commits to 100 Gbps Wavelength Services

Current Perspective: Slightly Positive
Vendor Importance: Moderate
Market Impact: Moderate

Event Summary

February 2, 2010 – Optimum Lightpath has debuted 40 Gbps, SONET OC-768 wavelengths in its tri-state northeastern footprint centered around the greater New York City metro area. The carrier positions the service for the most latency sensitive large enterprises, such as the financial industry, and offers the service to large enterprises and wholesale providers as a whole. Optimum Lightpath anticipates launching a 40 Gbps Ethernet interface option, and to debut 100 Gbps wavelength service as the technology matures.

Current Perspective

• Current Perspective: Slightly positive on Optimum Lightpath’s debut of commercial 40 Gbps wavelength services network-wide, because the carrier's footprint (and customer lists) include major financial players that will consider upgrading from 10 Gbps to 40 Gbps wavelengths just for its slight latency benefits. But in the longer term, 100 Gbps seems headed for widespread deployment as early as H2 2010, so commercial 40 Gbps wavelengths may be a short-lived interim step along the way to even higher speeds.

• Vendor Importance: Moderate to Optimum Lightpath, because for some of the nation's largest financial customers time is money, and microseconds translate into dollar gains and losses. These financial players will push providers for the lowest possible end-to-end latency. Optimum Lightpath currently needs 40 Gbps capability for just a few select customers, but those large customers are a strategically important segment of the service provider's business.

• Market Impact: Moderate on competing optical transport providers in the greater New York City metro area, because the financial sector is a strategic segment targeted by incumbent local carriers/IXCs Verizon and AT&T, as well as by competitive access providers such as AboveNet, regional providers such as RCN Metro Optical Networks, and national/global optical competitors including Level 3, Qwest and Global Crossing. In some cases, Optimum Lightpath could partner with these carriers, contributing 40 Gbps metro capability for a financial industry RFP governing an overall portfolio of national or global low-latency services.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

Recommended Actions - Vendor, Competitors, End Users

| Client access - Full report in Business Network Services - U.S. | More information

Top