Technology StocksInfinera

Previous 10 Next 10 
From: FUBHO10/3/2017 3:22:08 PM
   of 3804
34bn CenturyLink-Level 3 merger cleared by US Justice Department

03 October 2017 | Jason Mcgee-Abe

The US Department of Justice has agreed to clear CenturyLink’s pending acquisition of Level 3 Communications, subject to conditions outlined in a consent decree, including court approval of certain provisions, and other customary closing conditions.

Last month, CenturyLink pushed back the deadline to close the takeover in mid-to-late October. The acquisition is another step closer to completing but the deal remains subject to regulatory approval from the Federal Communications Commission (FCC) and the California Public Utilities Commission, the latter of which is set to vote on the deal at its next general meeting on 12 October. The California Administrative Law Judge has already advised state regulators to approve the deal, saying it is in the public interest.

"We are pleased that the Department of Justice has conditionally cleared CenturyLink's acquisition of Level 3. It is an important milestone in our overall approval process," said John F. Jones, senior vice president for public policy and government relations at CenturyLink.

"We anticipate court approval of our agreed resolution with the Department of Justice as early as this week. We are focussed on meeting our targeted transaction closing timeframe of mid-to-late October."

Both companies filed applications on 21 December 2016 with the FCCseeking the Commission’s approval to transfer control of various licences and authorisations held by Level 3’s operating subsidiaries to CenturyLink. However, the application has been paused since 9 June 2017 on “170 days”. The FCC has an informal timeline of 180 days which is a benchmark to help the FCC reach a decision on most applications relating to complex mergers. It has been 115 days since the clock was paused.

The 9 June 2017 saw CenturyLink submit a letter to the FCC stating that it intended to file additional data to supplement its previous responses.

In response that day, Kris Monteith, chief of the Wireline Competition Bureau, said in a letter to the companies’ respective counsels: “We appreciate your cooperation in providing this material, which we believe is necessary to allow us to complete our review of your applications, and we look forward to receiving it. Once we have had an adequate opportunity to review the new information, including engaging in any discussions with the Department of Justice, as permitted under our rules, and determining whether we need additional information, we will restart the clock.”

Although the FCC "endeavours to meet its 180-day goal in all cases, several factors could cause the Commission’s review of a particular application to exceed 180 days". However, with the Department of Justice agreeing to clear the deal and with CenturyLink estimating the approval to come “as early as this week”, we could see the FCC restart the clock this week with 10 days left.

CONSENT DECREEThe consent decree requires the combined company to divest certain Level 3 metro network assets and certain dark fibre assets. These divestitures are not expected to have a material impact on the pro-forma operating revenue and operating cash flows of the combined company.

Metro network asset divestitureUnder the consent decree, the combined company is required to divest Level 3 metro network assets in three metro areas: Albuquerque, N.M.; Boise, Idaho; and Tucson, Ariz. The combined company will continue to serve all current Level 3 customers unless they choose to be served by the buyer of divested assets in each metro area. Where needed to provide uninterrupted service to customers, CenturyLink may purchase some network services from the buyer of divested assets in each metro area. CenturyLink retains all of its existing networks and business operations in these three metro areas and will continue to provide a full suite of telecommunications and data services to residential and business customers.

Dark fibre asset divestitureThe consent decree also provides that the combined company will divest 24 strands of dark fibre connecting 30 specified city-pairs across the US in the form of an Indefeasible Right of Use, a customary structure for such transactions. Because the fibres are not currently in commercial use, this divestiture will not affect any current customers or services.

So far, 24 states and territories have approved or regulatory cleared the acquisition. The following states have already approved the acquisition: Alaska, Colorado, Delaware, Georgia, Hawaii, Maryland, Minnesota, Mississippi, New Jersey, New York, Ohio, Pennsylvania, Utah, Virginia, Washington, West Virginia and the District of Columbia. The transaction has received regulatory clearance from Connecticut, Indiana, Louisiana, Montana, Nevada, Texas and Puerto Rico.

The combined company will offer customers a broader and more complementary range of services and solutions, and enable the advanced technology and growing bandwidth needs of its business, government and consumer customers.

The proposed deal will increase CenturyLink's network by 200,000 route miles of fibre, including 64,000 route miles in 350 metropolitan areas, and 33,000 subsea route miles connecting multiple continents. CenturyLink's on-net buildings are expected to increase by nearly 75% to approximately 75,000.

CenturyLink CEO Glen Post, who is set to lead the combined company, said the "slight delay" is viewed by the company as "manageable", and does not affect the company’s integration plan.

"We are working to obtain the remaining approvals, including the State of California, the Department of Justice, and the Federal Communications Commission, and want to give the regulators time to complete their review process."

CenturyLink CTO Aamir Hussain recently told Capacity that the company had identified almost $1 billion worth of potential synergies from the merger, most of it coming from operational costs around its network. Hussain also said the deal will make CenturyLink "a worldwide player" and "number two in the world in enterprise".

To read the full interview with Aamir Hussain, in which he discusses how CenturyLink will merge its network with Level 3, click here.

Share RecommendKeepReplyMark as Last ReadRead Replies (1)

To: FUBHO who wrote (3247)10/3/2017 3:28:11 PM
   of 3804

AT&T, Frontier, CenturyLink hail Pai’s chairman confirmation

by Sean Buckley Oct 3, 2017 12:04pm
FCC Chairman Pai’s unsurprising ascent to a second term has been met with open arms by telcos AT&T, CenturyLink and Frontier.

Share RecommendKeepReplyMark as Last Read

From: FUBHO10/4/2017 9:02:59 PM
   of 3804

Facebook to Build $1B Data Center in Virginia: Report

OCT 04, 2017
Company plans 1 million square feet in Phase I; location is 100...

Share RecommendKeepReplyMark as Last Read

From: FUBHO10/5/2017 1:25:53 PM
   of 3804
NeoPhotonics blames slow China demand for upcoming layoffs

October 5, 2017
Author Stephen Hardy
Editorial Director and Associate Publisher

Citing the fact that soft demand for its products in the China market has continued into the third quarter, NeoPhotonics Corp. (NYSE: NPTN) has announced restructuring efforts that include layoffs. Company management expects the restructuring to reduce quarterly operating expenses immediately and result in an approximately $2 million reduction when fully realized in the first quarter of 2018.

The company did not reveal how many employees will be affected. The restructuring also will include real estate consolidation, a write down of inventory for "certain programs and assets" and a write-down of idle assets. Reduction costs are expected to be approximately $4.8 million, with $4.2 million in asset-write off costs and $0.6 million in severance costs. NeoPhotonics predicts approximately $4.6 million of these costs will fall in the third quarter, with the rest incurred in the fourth quarter.

While reports suggest that optical transceiver sales overall began to climb in the second quarter of this year (see "Optical transceiver sales rebound in 2Q17: LightCounting"), that growth came despite continued weakness in demand from systems houses in China. That softness has yet to show signs of relenting, according to NeoPhotonics.

"Lacking a clear indication of increased demand in China in the third quarter, we initiated several operational changes with the goal of expediting our return to profitability, including implementing certain restructuring initiatives designed to align our business with the current demand environment and lowering manufacturing output to manage inventory levels," said Tim Jenks, chairman and CEO of NeoPhotonics. "In taking these actions, we have maintained our research and development focus on products for next-generation coherent systems, operating at 400 Gbps to beyond 1 Tbps, wherein our advanced hybrid photonic integration provides the highest value."

The restructuring announcement came as NeoPhotonics released preliminary results for the third quarter. The company expects to report revenue between $69 million to $71 million, with GAAP gross margin of approximately 10% to 13% and GAAP loss per share of $0.50 to $0.40, inclusive of the restructuring charges. These figures compare to previous guidance of $70 million to $76 million in revenue, GAAP gross margin of 23% to 26%, and GAAP net loss per share of $0.21 to $0.11.

Meanwhile, the company now expects non-GAAP gross margin will be in the range of 14% to 17% and non-GAAP loss per share in the range of $0.35 to $0.27. Previous guidance called for non-GAAP gross margin of 24% to 27% and non-GAAP loss of $0.17 to $0.07. In addition to the restructuring charges, non-GAAP gross margin and non-GAAP net loss will suffer from the decision to reduce production levels during the quarter because of the lack of visibility into future demand levels in China.

Share RecommendKeepReplyMark as Last Read

From: FUBHO10/6/2017 12:32:18 AM
2 Recommendations   of 3804
Infinera Makes (Terabit) Waves at ECOC 2017 - Infinera

September 28, 2017

By Geoff Bennett
Director, Solutions and Technology

Last week the Infinera team, along with our mobile demonstration unit, the Infinera Express, attended the European Conference on Optical Communication (ECOC) 2017 exhibition and conference in Gothenburg, Sweden. The exhibition attracted 5,234 visitors, with 313 exhibiting companies from 27 countries and a record 3,189 people visiting the Market Focus sessions across the three days.

At the conference, Infinera achieved two industry-first milestones around advanced coherent technologies:
  • A demonstration of a 1024QAM (quadrature amplitude modulation) signal including constellation shaping.
  • A 100 gigabaud (GBaud), 32QAM single wavelength transmission.
As you can see from the figure below, Baud rate and modulation order are two of three possible axes of scaling for individual transponder capacity, and if 1024QAM was combined with 100 GBaud transmission the result would be a 1.5 terabit per second (Tb/s) data rate!

Figure 1: Three Axes of Scaling for Individual Transponder Capacity

At this point I will come clean. In an Optical Society of America webinar a few years ago, I explained that it would be “really hard” to implement a single wavelength with terabit data rates, and at the same time I explained that increasing the modulation order results in dramatically shorter optical reach. This is one reason why the parallel approach of super-channels for scaling transponder or appliance capacity has been phenomenally successful in the data center interconnect (DCI), long-haul and subsea markets. Super-channels allow us to combine lower-data-rate waves into a higher-data-rate optical channel that’s treated as a single entity from an operational point of view. Service providers can run bigger networks with smaller teams of engineers, and can respond to more dynamic changes in terabit-scale demand using unique architectural innovations such as Instant Network.

So why was increasing Baud rate so difficult a few years ago? Let’s delve a bit deeper into the technology options for scaling line card capacity:
  • Baud rate. The Baud rate of a wavelength is the rate at which modulation symbols are sent. The most common long-haul data rate today is 100 gigabits per second (Gb/s), using polarization-multiplexed quadrature phase-shift keying (PM-QPSK) modulation. The typical Baud rate is 32 GBaud, and PM-QPSK carries 4 bits per Baud. The additional data over 100 Gb/s is consumed by Optical Transport Network forward error correction. In general, the Baud rate is limited by the opto-electronics technology that is available. For several years 32 GBaud has been the most cost-effective Baud rate, but more recently this limit has been exceeded thanks to smaller feature sizes on the application-specific integrated circuits used in modern coherent systems. In other words, after reaching a plateau for several years, opto-electronics has moved to a higher rate, with 48 to 66 GBaud products on the horizon.
  • Modulation order. Another way to increase data rate is to carry more bits in each symbol. polarization-multiplexed binary phase-shift keying (PM-BPSK) carries 2 bits per symbol, PM-QPSK carries 4 bits, PM-8QAM carries 6 bits, and PM-16QAM carries 8 bits. Thus, a 32 GBaud, 16QAM wavelength will have a data rate of 200 Gb/s. There is a drawback to increasing modulation order, however, because the result is dramatically reduced reach. While PM-16QAM increases the data rate by a factor of two compared to PM-QPSK, it reduces reach by about 80 percent. However, PM-16QAM is a very important modulation technique where longer reach isn’t needed – such as the metro and DCI markets.
  • Infinera uniquely has access to a third axis of scalability: implementing multiple, parallel wavelengths on the same line card in order to create a coherent super-channel. We make this practical using our large-scale photonic integrated circuit (PIC) technology, but it also gives us a distinct advantage because we can focus development on one, two, or all three of these dimensions, depending on the current state of optical and electronic technologies.
Let’s look at our two post-deadline papers in more detail. In the first paper, Dr. Ryan Going of Infinera’s PIC team presented lab results for what we believe is the first reported demonstration of single-wavelength, 1 Tb/s data rates using 32QAM modulation at an astonishing 100 GBaud symbol rate. While opto-electronic power has definitely moved on since my OSA webinar a few years ago, a key capability that makes this very high Baud rate possible is the use of photonic integration. In simple terms, as Baud rates increase there is a very high value in being able to locate optical components as close together as possible, and the ultimate limit is for those components (i.e. laser, modulator, waveguides) to be integrated onto the same chip, using the same material – in this case indium phosphide. Silicon germanium drivers were also integrated into the package.

In the second paper. Dr. Robert Maher discussed the practicalities and consequences of extremely high order modulation – in this case up to 1024QAM at 66 GBaud, including advanced constellation-shaping algorithms. To understand the value of constellation shaping we need to imagine what a “symbol” actually means, and in this explanation, I will focus on a single polarization state – remember that in a real implementation there would be an X and Y version of each symbol, resulting in twice as many bits carried.Figure 2: Comparing 16QAM, 1024QAM, and a Shaped 1024QAM ConstellationIn Figure 2, we see a 16QAM constellation on the left, which consists of 16 symbols, with each symbol transporting four bits of information. Typically, each symbol has an equal chance of being transmitted through the system, so on average the amount of information being sent is 4 bits per symbol. For 1024QAM, shown in the center of Figure 2, there are 1024 independent symbols, each carrying 10 bits per symbol, assuming each symbol is given an equal chance of being transmitted through the system.

However, constellation shaping constrains the chances of certain symbols being transmitted in order to apply a form of “natural selection” in order to optimize the carrying capacity of the wavelength. This can be done because the lower-power symbols, closer to the origin, have a greater chance of being transmitted than the higher-power symbols. What this ultimately achieves is increased spacing between the symbols, thus making the shaped format less sensitive to noise. The trade-off is reduced transmission capacity, but the big advantage is that the noise tolerance can be adaptively tailored to match the signal-to-noise ratio of any given transmission link. In other words, Constellation Shaping allows us to maximize the data rate for the optical budget of a given fiber path (i.e. a given reach).

On the right of Figure 2 is the actual experimental result of constellation-shaped 66 GBaud 1024QAM presented by Dr. Maher at ECOC.

Note that the optical reach for 1024QAM will be relatively short – but it could find a sweet spot for the distances needed by DCI customers as they consume ever-increasing amounts of capacity.

From Demonstrations to Production NetworksThe two papers I’ve referred to are technology demonstrations – their purpose is to show what kind of technologies will become important in future products. We know, for example, that 400 Gb/s products are getting closer to shipping, and we also saw at ECOC technology demonstrations of 600 Gb/s per wavelengths taking place and participated in discussions of 800 Gb/s per wavelength. Infinera’s fifth-generation Infinite Capacity Engine (ICE5) is targeting 600 Gb/s per wavelength and ICE6, our sixth generation, is targeting at least 800 Gb/s per wavelength.

The optical reach for these higher data rates and for modulations like 1024QAM will be relatively short in terms of distance – but it will likely find a sweet spot for short-haul DCI customers as they consume ever-increasing amounts of capacity.

Infinera has also recently demonstrated some leadership at the other end of the distance spectrum – subsea. Recently Seaborn put their Seabras-1 subsea cable into production using Infinera’s commercially available XTS-3300 based on ICE4, the fourth generation of our Infinite Capacity Engine. On Sept 20, Infinera and Seaborn jointly announced that a new industry benchmark was set with 18.2 Tb/s over the 10,500+ km link using 8QAM and exceptionally tight channel spacing.


The innovative terabit wave capability test at ECOC is an indication of where single-wavelength access and metro solutions, as well as multi-wavelength sliceable super-channel technology for DCI, metro core, long-haul and subsea, could be heading in years to come. For Infinera this is a vital proof point of our ability to push the boundaries of the single-wavelength optical performance curve, but to also have the unique ability to combine multiple wavelengths in a single PIC-based module to deliver the benefits of super-channel scalability, namely service responsiveness and ease of operations, at the optimum price point for our customers. Infinera is commercially shipping ICE4 products today that are leading the market in terms of performance and ease of use. We are already demonstrating ICE5 and ICE6 test results, as well as showcasing technologies, like those shown at ECOC, that highlight the tremendous future scalability of coherent digital signal processors combined with photonic integrated circuits.

For more information, click here to contact us.

Related links:

White paper: The Next Generation of Coherent Optical

Legal Disclaimer

Share RecommendKeepReplyMark as Last ReadRead Replies (1)

To: FUBHO who wrote (3251)10/7/2017 12:47:37 PM
From: Tartuffe
1 Recommendation   of 3804
The Heavy Reading report Telco Optical Systems Beyond 100G, looks at how demand for optical transport has changed, how coherent optics is evolving and what the future holds for this established but dynamic technology. It examines advances in electronics that are pushing speeds faster, as well as the consequences for the standard optical grid spacing.Further, it looks at standardization efforts, including those led from the demand-side of the market, and compares the approaches and portfolios of 11 vendors of telco-focused optical systems.— Danny Dicks, Contributing Analyst, Heavy Reading

I think that Acacia's DSP and the move toward merchant silicone DSP's might be a very good thing for INFN and the ICE PICS platforms. That move might also facilitate the transition toward SDN by giving all the optical vendors a common starting point that would put everyone on the same page as far as interoperability is concerned. ASIC DSP's cost a lot of R&D money to develop,and produce and it is very inefficient and wasteful for every every vendor to develope and produce their own ASIC DSP's in limited volumes, not to mention the the interoperability issues (ASCIS as opposed to FPGA's have better performance, but need VOLUME to justify their development and production expense) ACACIA was out spending everyone and producing the best DSP which is why CEIN capitulated and made their DSP available to everyone in an attempt to recoup some of the costs. Having merchant silicone benefits everyone since all the optical vendors will not have the interoperability issues that are one of the biggest barriers to SDN's implementation. If the market moves to merchant silicone DSP's, the real competition can be over who can shape, transport, tune, manage and deliver in terms of performance, power consumption, capacity, configurability and ease of implementation etc. where INFN is leading IMO. This thesis, if true, brings ACIA onto the radar screen although INFN has made me gun shy about "following the technology" ... My thesis might be correct, but that is a pyrric victory if the portfolio suffers- The timing, demand cycles, execution and management might be more important, but I do think ACIA success might be good for INFN especially, and the industry as a whole, and may even be a very good investment. I thought I would float it here for feedback though- I also don't see anyone else willing to try and spend enough to keep up to compete with ACIA.....Huawei might steal the IP and produce it more cheaply, but other than that, I don't see anyone who would challenge their market share since the volumes might not justify multiple vendors.....

Share RecommendKeepReplyMark as Last ReadRead Replies (1)

To: Tartuffe who wrote (3252)10/7/2017 12:54:13 PM
   of 3804
It all depends how fast Infinera can come out with their own. If they are late with the next generations, they might not have a lot of choice. They are already using Acacia in XTM II which should be making the news right now, as it was due out end of Q3...

Share RecommendKeepReplyMark as Last Read

From: FUBHO10/9/2017 1:02:10 PM
   of 3804
Research & Education Networks: A Path Toward Cognitive Networking

October 11, 2017

11:00am to 12:00pm
Eastern Daylight Time

Level 3 and Infinera
Your Host

Share RecommendKeepReplyMark as Last Read

From: FUBHO10/11/2017 3:51:45 PM
   of 3804

CenturyLink pleads with FCC to approve Level 3 acquisition | FierceTelecom

CenturyLink is making a final push to get the FCC to approve its pending acquisition of Level 3 Communications, with hopes of closing it later this month. The FCC is the only regulator that has yet to sign off on the purchase.

To date, CenturyLink and Level 3’s proposed merger has gotten approvals from 19 states. It has also gained pre-closing notice filings in 14 other states.

At this point, CenturyLink and Level only need the final sign off from the California Public Utilities Commission (PUC), which is expected to approve the acquisition during their meeting later this week.

In September, a proposed decision to approve the acquisition was issued last month by Regina DeAngelis, the presiding Administrative Law Judge in California. The judge’s decision has been placed on the Consent Agenda for the California Public Utilities Commission’s next open meeting, scheduled for Thursday.

The California Administrative Law Judge proposed a decision that recognized the combination of CenturyLink and Level 3 was in the public interest.

Just last week, the deal was also approved by the Department of Justice with conditions that the two providers divest certain fiber assets in their respective regions.

Meanwhile, a U.S. District Court Judge executed the Asset Preservation Stipulation and Order filed jointly by the Division and the Applicants, clearing the applicants to complete the acquisition.

CenturyLink said in an FCC filing (PDF) that now it has gained these other approvals, the regulator should have all it needs to approve the acquisition.

“In light of these developments, and based on the record developed in this proceeding, the Applicants submit that the Transaction is in the public interest and thus urge the Commission to approve it forthwith,” CenturyLink said.

Share RecommendKeepReplyMark as Last Read

From: FUBHO10/11/2017 4:02:47 PM
   of 3804

FCC Restarts Approval Clock for CenturyLink & Level 3

By CAROL WILSON, Editor-at-large, 10/11/2017
CenturyLink's pending $34 billion purchase of Level 3 Communications is now apparently days away from completion, as the FCC has restarted its informal approval clock, now set to expire in the next two weeks.

The deal was announced a year ago, and both companies have since weathered stock price woes. The US Department of Justice weighed in a week ago, setting its conditions for the merger. Then the Federal Communications Commission (FCC) issued its letter Wednesday saying it had restarted its 180-day informal approval clock last Friday, making it likely that CenturyLink Inc.(NYSE: CTL) and Level 3 Communications Inc. (NYSE: LVLT) will finally be allowed to combine. (see DOJ Blesses CenturyLink, Level 3 Merger... With Conditions and CenturyLink Splashes $34B on Level 3 Buy.)

Merger plans are well underway at the companies, with management structures in place and a palpable eagerness to get started, especially in addressing the business services market, as indicated in off-the-record discussions with executives at both CenturyLink and Level 3.

CenturyLink also must get California state regulators' approval but that is expected later this week, after a state administrative law judge issued a decision that the merger was in the public interest.

The FCC letter notes that CenturyLink has "fulfilled their obligations to provide responsive information to the Commission in connection with its requests in this docket, and because most of the supplemental materials had been provided before then, we were able to complete our review of those materials on that date. Accordingly, we are restarting the informal 180-day clock as of Friday, October 6, 2017, making that date Day 170 of the Commission's review."

The first challenge for the combined company will be to convince Wall Street of its potential for success, an effort likely to start when CenturyLink announces its quarterly earnings on October 30. Both CenturyLink and Level 3 stocks are currently hovering above their 52-week lows. (See Investors Flee US Rural Incumbents and CenturyLink Posts Lackluster Q2.)

Share RecommendKeepReplyMark as Last ReadRead Replies (2)
Previous 10 Next 10 

Copyright © 1995-2018 Knight Sac Media. All rights reserved.Stock quotes are delayed at least 15 minutes - See Terms of Use.