AboveNet has 40G enterprise ambitions

Rajiv Datta, CTO of competitive carrier AboveNet, said at Light Reading's Optica Expo that the service provider wants to deliver 40 Gbps metro transport services to enterprise customers, assuming the cost involved in such a service could be brought in line. Datta told Light Reading the cost goal needs to come down to around "2.5- to 3-times" the cost of a 10 Gbps service. AboveNet and its vendors may have some time to figure out how to do that, as it is not readily apparent that enterprise customers are craving that level of bandwidth yet.

The largest telcos can sometimes get their vendors to disregard their own short-term margins in favor of rolling out equipment to create a lower-cost service that could reap higher long-term rewards, but it will be interesting to see if AboveNet can apply the same leverage. Vendors certainly want to diversify their carrier customer lists at a time when carrier capex seems unstable, and giving companies like AboveNet favorable deals might be the price they have to pay.

For more:
- read this coverage at Light Reading

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Cisco Systems announced a new 40G line card last month
AT&T deployed 40G transport gear late last year

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