China Telecom (NYSE: CHA) on Tuesday named Alcatel-Lucent's (NYSE: ALU) Shanghai Bell, the Paris-based vendor's China unit, as its key converged optical transport network (OTN) and wavelength division multiplexing (WDM) technology supplier.
The vendor said that it won "70 percent market share in the 10G sector in China Telecom's most recent central bidding process," one that's focused on increasing the capacity and reach of the service provider's optical transport network.
This latest optical build out is focused on fulfilling two of China Telecom's key requirements: increasing the reach of its wireline broadband access network, and increasing the availability of its 3G and WiFi-based broadband services. With this capacity increase, the service provider said it will more effectively handle the shifting data patterns seen on its wireless and wireline networks.
In this network build out, which provides a foundation for 100G transport capabilities, China Telecom will leverage Alcatel-Lucent's converged OTN/WDM technology that's incorporated in its 1830 Photonic Service Switch (PSS) and the Photonic Service Engine (PSE) chip. On one fiber pair, China Telecom will be able to support a mix of 10G, 40G and 100G channels on the same fiber pair, meaning it can reuse its embedded optical network infrastructure and expand capacity as needed.
Besides combining the OTN and WDM technology onto one platform, the 1830 incorporates GMPLS (Generalized Multiprotocol Label Switching) control plane intelligence to ensure network restoration and automating circuit turn up.
OTN continues to be at the top of the service provider community's optical priorities. According to a recent Infonetics Research report, OTN transport and switching market is forecast to grow at a 17 percent Compound Annual Growth Rate (CAGR) between 2011 and 2016, surpassing the 5.5 percent CAGR of the overall optical equipment market.
Alcatel-Lucent, which has cited China as a big growth market, now can cite this latest win with China Telecom as evidence that its bet on the region is gaining real momentum.
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