FierceTelecom: Let's go back to the last mile. How is the Fiber to the Premises (FTTP) opportunity evolving in your mind?
Howard-Anderson: We view it as a growth opportunity over the next decade probably. That has a couple of messages to it. It's hard to talk about that without talking about the broadband stimulus program. We think clearly the stimulus dollars favor fiber deployments and because they will tip the economic case that service providers have to replace copper with fiber and getting either real grants or loans on good turns tips the business case to justify fiber. That will both generally change the balance in the market and those stimulus dollars will go to fiber deployments.
We think it's a long-term opportunity that copper's not going away and VDSL2 as the newest flavor of DSL is going to drive 50 - 100 Mbps of bandwidth on very short loops. Then, we like to say we de traumatize the technology decision because our platform does both FTTP and DSL very seamlessly. You just mix and match blades in a chassis. We also like to de traumatize the decision between PON FTTP and Point to Point FTTP because we offer PON-based FTTP or Point to Point FTTP.
FierceTelecom: Okay, so in FTTP deployments do you see a preference for PON and P2P in certain situations like business deployments or is a mixture of both?
Howard-Anderson: So far it's been a healthy mix of both. One group will use PON for residential and GigE for businesses and schools, and being able to do that out of the same point of electronics is very helpful. We also see a mix of PON and Ethernet in the same provider just for residential deployments. The less dense it gets it may make more sense to run point to point. The other way around if it's a 1 acre subdivision GigE makes more sense there because they'll be the first ones with high bandwidth services such as 3D TV, for example.
FierceTelecom: No less important is the copper evolution with the advent of VDSL2. How do you see that playing out?
Howard-Anderson: Over the last decade, phone companies have been moving their electronics out of their COs and closer to homes and then running fiber to those electronic points. You get better speeds shorter the telephone line is. If you get to a certain point between 3,000 - 5,000 feet then VDSL2 dramatically takes that curve upward over a given distance. We just began shipping product last month. It's a 48-port density blade with power management and all of the intelligence that we did before such as security and rate shape limiting and eventually bonding. These are all factors we developed for ADSL and now we're developing them for VDSL2. As a result, we will provide a smooth migration for customers that need to replace some of their ADSL2+ with VDSL2 and push deeper with VDSL2 where before it might have not made sense before.