FierceTelecom: At the recent show you participated in, ISS World Asia, it sounded like there was a lot of interest in Glimmerglass. Many Asian countries are doing fiber buildouts. Do you have any involvement with those?
Lundy: We work with countries in Asia, we aren't in the Fiber to the X (FTTX) business, that's an acutely cost sensitive area, kind of a commoditized area. ...In terms of the countries that are building out fiber, not necessarily the ones you mentioned, we are a key part of their signal management capability for the intelligence and interception capability. Monitoring, if you want to call it that.
I think what we saw in Kuala Lumpur was that most if not all the countries in that region are concerned about the cyberthreats that they face. It's a part of the world where there's been a lot of terrorism activity and a lot of malware activity and they're all interested in full, pretty much end to end monitoring and interception capabilities and I think we could be a very important part of those solutions.
FierceTelecom: What companies or agencies are you talking with in other countries? Telecommunications service providers, law enforcement, or both?
Lundy: Each country is different. Some countries the police force is particularly small, or in Eastern European countries the police or their equivalent of the police are really running it. Other countries it's under the defense department, other countries it's under multiple agencies. It just really depends. Some countries, like New Zealand--where, by the way we aren't deployed--they had lawful interception laws passed years ago that are concentrated on having the carriers there procure the equipment and deploy it. But as you probably know, Korea years ago passed laws for that, Sweden passed laws just a year ago. It's part of a global cybertrend to protect countries, just as hundreds of years ago countries started protecting their waterways and monitoring and protecting the roads against threatening boundaries. The new avenue to protect is optical. Ninety five percent of the world's Internet traffic travels over optical fiber--undersea fiber into most countries in terms of an international basis. So those are very important places to be cognizant of what's going on and the capability to select traffic and monitor it.
FierceTelecom: Looking at the increasing interest in securing that network, for next year, you already mentioned the first quarter will be very interesting. What other trends or outlook are you seeing for your company or the optical networking market in general next year?
Lundy: What we could see in Q1 in the financial industry could be a major strategic shift across the enterprises. As far as what happens next year in the countries and carriers, I think we pretty well described it, it's more momentum probably even broader cognizance, but I don't see another ...another event, shall I say.
FierceTelecom: How will lawful intercept grow or change in 2011?
Lundy: I think the change that we would see is that there will be a recognition of the activity in the Middle East and North Africa. Not necessarily in networking trend, but in geographical market trend, and there will also be a recognition of the increased activity in Malaysia, Indonesia, Southeast Asia. Now it's been pretty well known that countries like New Zealand... and the European countries, Western Europe has been well known. What will be recognized and very interesting in the next year will be what's going on in Southeast Asia and in the Middle East/North Africa.
FierceTelecom: For the Middle East, particularly as you said, not just intelligence agencies but what telecoms are doing...
Lundy: In many cases, those parts of the world, telecommunications carriers will be doing the procurement and the deployment. They're really a trend that will occur within the major telecommunications suppliers. I'm not sure they're going to really want to talk about it.
FierceTelecom: I suppose they won't want to talk about it until it's up and deployed.
Lundy: Even then they don't want to talk about it. (Laughs)