Verizon’s NG-PON2 Trial: Reality and Historical Perspective Needed to Temper the Hype

Erik Keith - Principal Analyst, Fixed Access Infrastructure
Erik Keith – Principal Analyst, Fixed Access Infrastructure

Summary Bullets:

  • Verizon’s NG-PON2 trial provides both ADTRAN and Calix/Ericsson with the opportunity to establish a foothold in one of the world’s highest-profile FTTH networks and pressure incumbent supplier Nokia in the process.
  • Optics pricing for NG-PON2 – as much as 10x higher than current GPON prices – means that any vendor meeting Verizon’s demand of deploying NG-PON2 at GPON prices will prove hard-pressed to realize product line profits.

Verizon has announced that it will be trialing NG-PON2 solutions from U.S.-based vendors ADTRAN and Calix, with resale partner Ericsson supporting Calix for good measure. While this trial will be in Verizon’s Waltham, Massachusetts-located FiOS laboratory – i.e., a lab trial, not a field trial, let alone commercial deployment – it has nevertheless generated substantial hype in the industry. To be clear, winning formal, publicly disclosed trial status with Verizon or other Tier 1 operators is no small feat. For both ADTRAN and Calix, winning a slice of Verizon’s NG-PON2 FiOS network upgrade and service deployment would be one of the biggest wins in company history. But, before we all get too excited about the prospects of Verizon going full steam ahead with NG-PON2, several factors must be considered. Continue reading “Verizon’s NG-PON2 Trial: Reality and Historical Perspective Needed to Temper the Hype”