(WEB HOST INDUSTRY REVIEW) — IT and communications solutions provider NTT Communications Corporation (www.ntt.com) has selected optical networking system provider Infinera (www.infinera.com) to provide the platform for NTT Com’s new IP backbone network in the Tokyo Metropolitan area, enabling it to deliver a broader range of services with greater speed, flexibility and ease to Internet service providers.
According to NTT Com’s Tuesday announcement, it chose Infinera’s digital optical network for its Tokyo IP backbone network because of its unique digital intelligence, which helps the NTT Com network achieve large capacity and network flexibility at reduced operating expenditure. It also lets NTT Com achieve a simplified and effective network that is expandable and able to meet increased growth in traffic.
“The Infinera network will help NTT Com meet its customers’ needs with great speed and flexibility,” NTT Com network business division senior vice president Yoshimasa Tokui said in a statement.
Infinera’s Bandwidth Virtualization architecture puts a minimum of 100 Gigabits per second of capacity throughout the network, enabling NTT Com to deliver a full range of services between any points on the network to its customers more quickly and cost-effectively. The Infinera DTN network’s GMPLS intelligence enables NTT Com to deliver new services in days or minutes, as compared to weeks or months with traditional DWDM networks.
Based on large-scale, photonic integrated circuits, which integrate more than 60 optical devices on a pair of chips less than 5mm wide, the Infinera DTN provides a Digital ROADM for long-haul and metro core networks, combining high-capacity DWDM transport, integrated digital bandwidth management, and GMPLS-powered service intelligence in a single platform.
Infinera chief executive officer Jagdeep Singh his company is delighted to have been chosen by NTT Com for its new Tokyo Metropolitan IP backbone network. “This win reflects Infinera’s continued momentum with tier-one service providers worldwide,” Singh said in a statement. “Infinera’s next generation technology will help NTT Com fulfill its vision of becoming the ICT solution partner of choice for business customers and accommodate rapidly growing bandwidth demand in Japan, while delivering the highest-quality services to all its customers.”
NTT is the latest tier-one service provider to become a Infinera customer in the past 12 months, following Deutsche Telecom, OTE, and TeliaSonera. On Tuesday, Infinera reported second quarter revenues of $69 million for the period ending June 27, compared to $66.6 million for the previous quarter. The revenue, however, landed far behind $90.8 million recorded in the same quarter last year.
“We saw a number of positive developments in the second quarter, with both existing and new customers,” Singh said. “There was a significant quarter-over-quarter increase in orders, including over 2,000 TAMs booked, and we continued our new customer win momentum adding four new customers to our roster.”
Singh said that these developments underscore Infinera’s winning strategy in the face of the economic downturn. “We believe that over time, as the economy improves and as our customers add capacity to existing footprint, our gross margins will continue to rebound,” Singh said.
Singh, however, will not be heading the company’s efforts for much longer, having announced plans this week to step down as CEO on January 1, 2010, at which point he will take on the role of executive chairman and chief operating officer Tom Fallon will become president and CEO.
Fallon said he is thrilled to become CEO and to continue working with Singh and the rest of the organization to help the company set the foundation to meet its long-term potential. “We have a significant competitive advantage in the DWDM market with our PIC-based technology, a world-class team, and strong customer momentum, and we look forward to extending this lead in the years to come and delivering sustained profitable growth,” Fallon said in a statement.
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