Deutsche Telecom Greenlights Nokia for Optical Upgrade

Nokia’s optical portfolio got a boost from Deutsche Telecom today. The German network operator plans to deploy the vendor’s optical transport portfolio as part of an ongoing network modernization effort. Nokia’s optical portfolio got a boost from Deutsche Telecom today. The German network operator plans to deploy the vendor’s optical transport portfolio as part of an ongoing network modernization effort. The deal will see Deutsche Telecom deploy Nokia’s WaveFabric coherent optics, including its 600 Gb/s-capable PSE-V line cards and 1830 Photonic Service Switches, alongside its WaveSuite software platform. Nokia claims its coherent optics will help to address growing demand for bandwidth in both residential and industrial settings. The contract win is a “pretty significant” one for Nokia, which doesn’t have a long history with Deutsche Telecom in the optical space, Dell’Oro Group VP Jimmy Yu said. Launched in May 2020, Nokia’s PSE-V and low-power PSE-Vc line cards are capable of peak line rates of 600 Gb/s and optimized for use at 400 Gb/s at all span lengths. The new cards launched at a time when Nokia’s competitors were rolling out and/or trialing 800 Gb/s-capable coherent optics. Despite offering slower peak line rates on paper, Yu argues that Nokia’s PSE-V is more than capable of delivering 600 Gb/s line rates on all but longest spans of Deutsche Telecom’s network. Deutsche Telecom, however, is likely to operate them at 400 Gb/s. “If you’re a service provider, you’re not exactly rushing out to get 800 Gb/s out there,” he said. “It’s usually the hyperscale guys that are pushing for 800 Gb/s. Most telecom operators are just starting to ramp 400 Gb/s.” Nokia claims to have “cost optimized” its latest generation of line cards to meet the need of service providers — especially at 400 Gb/s line rates. In an earlier interview Kyle Hollasch, director of product marketing for Nokia’s optical networking division, called 400 Gb/s the sweet spot for modern optical transport networks. Additionally, Yu notes that Nokia’s strong presence in Europe may have played into Deutsche Telecom’s decision to go with WaveFabric over competing alternatives, particularly those from China-based telecommunications giant Huawei. “Deutsche Telecom does buy a lot from Huawei,” Yu said. “I can’t help but think: could this be one of the actions Deutsche Telecom is taking to either reduce [its investment in] Huawei or somehow move away from Huawei?” Huawei is just one of several Chinese-owned companies that have come under fire from the U.S. and its allies. Over the course of 2020, the U.S. Commerce Department took steps to cut off Huawei from U.S. intellectual property and effectively banned U.S. companies from deploying the vendor’s equipment. These efforts have generated quite a bit of uncertainty for many service providers, Yu explained, adding that many are now looking to de-risk their network investments. “Nokia has a very large presence in the European market,“ Yu said. “If you want to choose vendors and you want to be risk averse you want to choose a vendor that’s in your region.” According to Dell’Oro Group, Huawei currently dominates in the region, commanding 32% of the optical market, while Nokia comes in second with 22%, and Ciena holds about 15%. Tangentially, Ciena today scored two new subsea fiber deployments that will leverage its 800 Gb/s-capable WaveLogic 5 Extreme coherent optics. The first of these deployments is the Next submarine cable, a 13,494 kilometer span connecting Australasia to the West Coast of the U.S., which is scheduled for completion in 2022. The second is the Havfrue submarine cable, which will span 7865 kilometers across the Atlantic Ocean, and connect the U.S. to Denmark, Ireland, and Norway.