NEC Eluminant Technologies Releases Research Study On Passive Optical Network Technology

Business Wire, June 6, 2001

Business Editors/Hi-Tech Writers

CHANTILLY, Va.--(BUSINESS WIRE)--June 6, 2001

"How can I get more customers onto my fiber?" Study Details

Construction Costs of Adding Subscribers to Existing Fiber

Routes Using PON Technology

NEC Eluminant Technologies, Inc. (eLUMINANT(TM)) announced today the release of the "Light Urban Passive Optical Network (PON) Model" research report. The study explores construction costs and payback for various types of buildings and demonstrates how PON deployment enables high-bandwidth optical fiber networks to serve small to medium-sized businesses (SMBs) using fiber routes that currently pass them by.

The Model consists of an overview of PON technology, deployment costs and revenue estimations based on deploying the technology from splice points in existing access fiber routes. The PON system consists of an optical line terminal, located in the central office, which drives a single fiber-connection to a passive fiber splitter located at the splice point. Up to 32 customer locations can then be connected to the splitter, sharing the fiber bandwidth. The model concluded that most SMBs located within 2000 feet of a splice point provide an economically attractive opportunity for the deployment of PON technology.

eLUMINANT's research on PON deployment cost was conducted in Herndon, Virginia, an area where there is a high concentration of businesses of various types. The survey included 179 businesses residing in 52 buildings located close to seven different splice locations. Among the 179 businesses, 170 of them could be connected using eLUMINANT's low-cost PON system with payback periods of less than a year. The deployment investment would be mainly in building access, equipment, and construction of optical distribution network. The types of existing network construction used had a significant influence on the deployment costs.

"Although many service providers have realized that SMBs represent a large growth potential in the near future, the migration of their business network to the PON technology has been delayed due to the perceived high cost of fiber deployment," said Jim Holley, Sr. vice president of marketing at eLUMINANT. "However, the study results show that the initial build-out costs are not as constraining as people had expected and service providers should be taking advantage of the economical benefits of the PON architecture to add more customers to their fiber networks."

This study succeeds eLUMINANT's release of one of the first commercially available component building blocks for developers of next-generation optical access systems, the G.983.1 FSAN-compliant PON termination subassembly. The "Light Urban PON Model" report will be shared with customers and made available to the press and analyst community upon request.

About NEC Eluminant Technologies

NEC Eluminant Technologies, Inc. is headquartered in Chantilly, Virginia with a research and development center based in Portland, Oregon. The company's mission is to "light up the loop" by removing broadband access bottlenecks using fiber optic technology. eLUMINANT is a leader in the research and development of products based on passive optical networking, the technology that will enable fiber-to-the business, as well as to the curb and to the home. For more information about eLUMINANT, visit the company Web site at www.eluminant.com.

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