Verizon Wireless, a division of Verizon, is picking LTE — Long-Term Evolution — as the 4G technology for wireless broadband, and will start trials sometime in 2008.
LTE allows download rates of 100 Mbps and upload speeds of 50 Mbps for every 20 MHz of spectrum. It can handle 200 connections per 5 MHz. However, it is said to be spectrally more efficient and can better handle IP connections. LTE networks are based on the Internet Protocols. The traditional wireless vendors — Alcatel-Lucent (ALU), Nortel (NT), Motorola (MOT), Nokia-Siemens and Ericsson (ERICY) — are going to be hardware suppliers, while the usual handset makers will make devices for this trial. Vodafone (VOD), joint owner of Verizon Wireless, is also planning an LTE Trial for 2008.
That said, it will be a while before we see the actual 4G network rolled out. This technology evolution when complete will make Verizon’s (VZ) Open Access Development initiative more meaningful. The LTE evolution negates the GSM vs. CDMA debate, and it also promises global connectivity. In a recent chat, AT&T Mobility President & CEO Ralph de la Vega said that his company was going to migrate to LTE as the 4G solution. In such a scenario, you and I can then switch between the two services without worrying too much about handsets.
Large funding rounds for startups dabbling in optical technologies were a regular affair back in the late 1990s, but lately they’ve become about as common as a Bigfoot sighting.
Today, Mountain View, Calif.-based Matisse Networks announced that it has raised $45 million in fresh capital from Merrill Lynch PCG ($35 million) and existing investors Menlo Ventures, Walden Intl., Woodside Fund and Monitor Ventures. The latest round brings the company’s total funding to date to $80 million.
Matisse is targeting the metro networks with what it calls “optical burst switching” technology. It’s a combination of two boxes: one is a photonic switch, the other, an Ethernet switch (with packet smarts) that maps packets to wavelengths. Based on where the traffic is going and the quality of service associated with the packets, the system assigns a wavelength in less than 50 nanoseconds.
Sam Mathan (who in his past life started and sold Amber Networks to Nokia (NOK) for $421 million in July 2001), told us in an interview that Matisse’s products are ideal for those who are looking to replace SONET and other legacy technologies.
Large telecom carriers, thanks to the growing demand for bandwidth (driven in part by video), are showing an increasing interest in optical Ethernet technologies, prompting equipment vendors to build what analysts refer to as “optical networking platforms.” With the consolidation in the carrier market, the equipment vendors find themselves on the back foot these days, often making deals that defy logic.
Still, Matisse counts Alcatel-Lucent (ALU), Fujitsu (FJTSY) and Ciena (CIEN) among its competitors, and as such is going to have to its work cut out for it in trying to convince carriers to do business with a startup.