Fiberoptics Industry Report
Cox Communications (Atlanta, GA) awarded OpVista (Irvine, CA) a multi year contract to deliver the MetroVista DWDM optical transport system to facilitate Cox's migration to a fully converged, next generation DWDM network.
Cox Communications chooses OpVista DWDM system
Cox Communications (Atlanta, GA) awarded OpVista (Irvine, CA) a multiyear contract to deliver the MetroVista DWDM optical transport system to facilitate Cox’s migration to a fully converged, next-generation DWDM network. Because Cox allows each of its markets to choose its own equipment from an approved vendor list, the MetroVista equipment will be pitted against Ciena’s ONLINE Metro DWDM system in most markets.
According to Dan Estes, engineering manager at Cox, the company already uses the Ciena equipment, as well as systems purchased from Sorrento Networks (now part of Zhone Technologies). While markets that have the Sorrento/Zhone systems in place will be able to continue to purchase them if they’d prefer, the other markets will choose between OpVista and Ciena. Estes says that Cox currently has approximately 33 markets, 13 of which use metro DWDM systems.
The demand for DWDM equipment within the Cox system should be strong. “All of our existing markets that have DWDM equipment are looking to expand the number of nodes in their market,” Estes says. “I’m aware of some four or five (other) markets right now that have solicited quotes from current DWDM suppliers,” he adds.
Bookham announces further cutbacks
Bookham (San Jose, CA) has adopted an additional cost-reduction plan to reduce its overhead structure by an additional $6 million to $8 million per quarter. This plan is in addition to the ongoing cost reductions of $10 million to $12 million per quarter announced in May 2004. Bookham anticipates the combined plans to be completed before the end of 2005.
The plan includes workforce reductions, the closure of certain facilities including Bookham’s former headquarters in Abingdon, England, and the consolidation of certain development and manufacturing programs. The restructuring charges associated with this additional reduction cost plan are expected to be $6 million to $8 million, including $4 million to $5 million for employee severance and retention.
Since 2002, Bookham has acquired the optical components businesses from Nortel Networks and Marconi, as well as Ignis Optics, Cierra Photonics, New Focus, and Onetta. The company has manufacturing facilities in the U.K., U.S., Canada, China, and Switzerland; offices in the U.S., U.K., France, Italy, and China; and employs approximately 2000 people worldwide. In May 2004, Bookham closed its GaAs fabrication operation in Caswell, England. At the same time, Bookham is reportedly accelerating the development of its packaging facility in Shenzhen, China, with the transfer of production to that plant expected to be completed by mid- to late 2005.
China ministry says Corning didn’t dump fiber
Corning Inc. (Corning, NY) received a positive final determination from the Ministry of Commerce (MOC) of the People’s Republic of China, Beijing, that affirmed the company’s position that it had not dumped standard single-mode optical fiber into the Chinese market.
The MOC concluded that Corning had not dumped standard single-mode optical fiber into the Chinese market because the margin between its home-country pricing and its pricing into China was less than the statutory minimum threshold. The ministry thereby eliminated its preliminary determination of a 16% dumping margin, which means that no dumping margin will be applied against Corning imports.
China’s MOC also ruled that optical-fiber imports from the United States, Korea, and Japan collectively caused injury to the domestic Chinese fiber industry. Therefore, dumping margins have been assigned to other companies in these countries that were found guilty of dumping optical fiber.
China’s MOC initiated its anti-dumping investigation on July 1, 2003, against certain standard single-mode optical-fiber products originating from the United States, Japan, and Korea, alleging that foreign products were being imported and sold at lower prices than the market conditions justified, and that Chinese domestic producers were injured as a result. The investigation was based on a complaint filed by two Chinese fiber manufacturers against several optical-fiber producers.
Also in the news . . .
Axcel Photonics (Marlborough, MA) appointed David Hardwick chairman of the board of directors. Hardwick, with more than 45 years experience in the optical and laser industry, has served as CEO of Confluent Photonics, general manager of IPG Photonics, CEO of Melles Griot, president of Polytec PI, and vice president, sales and marketing at Lasertron. . . . RSoft Design Group (Ossining, NY) introduced a new mixed-level simulation software tool technology created through collaboration with Agilent Technologies. RSoft’s design engagement with Agilent Technologies’ Fiber OpticProducts Division produced a new tool platform that allows direct extraction of VCSEL (vertical-cavity surface-emitting laser) parameters from one level to the next.