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Light Reading Insider Analyzes Passive Optical Networking for

FTTP Deployments

NEW YORK, April 12 /PRNewswire/ -- The North American passive optical networking (PON) and fiber to the premises (FTTP) market may be hot, but it's going to get a lot hotter in 2005 and 2006, as an influx of new products and service provider RFPs add fuel to the fire, according to a new report from Light Reading (

The report -- entitled "Passive Optical Networks: 21st Century Access?" and published by the subscription research service Light Reading Insider, ( -- evaluates technology choices, vendor strategies, and the lessons to be learned from PON activity throughout the world. A bright future is expected for PON as the centerpiece of carriers' triple-play services over FTTP.

"In the near term, greenfield deployments, especially by utilities and municipalities with long-term ROI expectations, will be the main addressable market," says Daro Clark, the report's author. "But FTTP will not result in higher RBOC capex; it will simply replace spending on legacy copper infrastructure."

This report looks at the recent customer trends in FTTP/PON and explores the barriers to widespread deployment. The Insider's conclusions include:

       * The RBOC's choice of the BPON standard is the strongest validation of
       PON technology in the U.S. to date.
     * Verizon is the most ambitious RBOC, while SBC and BellSouth are less
       convinced of FTTP's short-term proposition.
     * Beyond the RBOCs, the opportunities are plentiful: Independent telcos,
       cable and utility companies, municipalities, and real estate developers
       provide PON vendors with a captive but fragmented market.
     * PON equipment prices will decline 20 percent to 30 percent in the next
       two years.
     * Regulatory uncertainty regarding RBOC unbundling commitments and other
       companies' rights to offer PON-based services is keeping in the
       industry at the bleeding edge.
     * With over 1 million FTTP subscribers and a projected 5 million by the
       end of 2005, Japan is the test bed for next-gen access networks.
     * The race is on between the EPON and GPON standards for industry
       acceptance, but ultimately the customers' existing network technologies
       will force their decisions.

Private vendors analyzed in this report: Optical Solutions Inc.; Salira Optical Networking Systems Inc.; Alloptic Inc.; CEOS Pty Ltd., and Flexlight Networks Inc.

Public vendors analyzed in this report: Advanced Fibre Communications Inc. (Nasdaq: AFCI), Alcoa Fujikura Ltd. (Jointly owned by Alcoa Inc. [NYSE: AA] and Fujikura Ltd.), Alcatel SA (NYSE: ALA), Fujitsu Ltd. (OTC Bulletin Board: FJTSY), and Hitachi Ltd. (NYSE: HIT)

The report is available as part of an annual subscription to the monthly Light Reading Insider, which is priced at $1,350. The subscription includes 12 monthly reports covering the hottest wireline equipment and services markets. Individual reports are available for $900.

To subscribe, or to get more information, please visit:

About Light Reading Insider

Light Reading Insider (, an electronic research service of Light Reading (, provides independent analysis to investors and industry leaders tracking the latest developments in the telecommunications industry.

       Marketing Contact:
     Laura West
     Marketing Director
     Light Reading Insiders
     212-925-0020 x105
       Sales Contact:
     Dave Williams
     Sales Director
     Light Reading Insiders

SOURCE Light Reading

-0- 04/12/2004

/CONTACT: Laura West, Marketing Director, +1-212-925-0020, ext. 105,, or Dave Williams, Sales Director, +1-415-293-8470,, both of Light Reading Insiders/

    /Web site:


CO: Light Reading ST: New York IN: CPR MLM PUB TLS SU: SVY -0- Apr/12/2004 14:00 GMT

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