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Verizon Pushes Toward a 100Gbps Core
Announces additional trials with Nortel....
by Karl Bode Monday 06-Oct-2008 tags: Fiber · business · bandwidth
"There are very few routes [in Verizon's network] with less than 100 Gigabits of traffic," says Glenn Wellbrock, Verizon's director of Backbone Network Design at Optical Expo '08. Unfortunately for them, they're meeting this demand by combining multiple 10-Gig wavelengths -- because "that's the only technology available at the right price when the existing networks were built." This is why Verizon, who has been conducting 100Gbps core network trials with Siemens and Alcatel-Lucent, today announced 100Gbps core link trials with Nortel as well.

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funchords
Hello
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4 edits

Hey Comcast!???!

You can call Verizon customers "The Slowskys" -- but everyone knows that at the finish line, the tortoise wins the race!

Fubar

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1 edit

Re: Hey Comcast!???!

This is backbone... Not Fios or anything else last mile...

ThrowDemsOut
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Re: Hey Comcast!???!

said by Fubar:

This is backbone... Not Fios or anything else last mile...
And it also gives the lie to those claiming there is no backbone bandwidth crunch. Both Verizon & Level 3 and independent vendors proclaiming the problems with backbone traffic. »www.lightreading.com/document.as···d=165279
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Dogfather
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Re: Hey Comcast!???!

Just shows there is no backbone bandwidth "crunch". Both Level 3 and Verizon are easily handling the current traffic and looking ahead to an exponential increase in capacity.

53059959
Temp banned from BBR more then anyone

join:2002-10-02
PwnZone

Re: Hey Comcast!???!

I have to agree, comcast is just cheap. Their backbone has terrible peering, forcing me to go across the country just to come back to the same city.

DataRiker
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3 edits
said by ThrowDemsOut:

said by Fubar:

This is backbone... Not Fios or anything else last mile...
And it also gives the lie to those claiming there is no backbone bandwidth crunch. Both Verizon & Level 3 and independent vendors proclaiming the problems with backbone traffic. »www.lightreading.com/document.as···d=165279
Absolutely false.

"Level 3 has engineered the network carefully. We have high margins and our IP related revenue continues to grow. It is a good business for us and one we remain committed to"

those margins are not easy to come by, but from most educated guesses I have seen are anywhere from 1500 - 10,000%, not to shabby.

Also Level 3 has fiber that is not even turned on yet with no ip infrastructure around it yet.

From the leading national expert, as quoted on our site here:

»Deconstructing The Exaflood Myth

Dogfather
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1 edit

Re: Hey Comcast!???!

Expert was a little understated. In case anyone was wondering, that quote was from Mark Taylor, director of IP Services for Level 3 in Europe. I'm fairly certainly he is familiar with Level 3's capacity

DataRiker
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Re: Hey Comcast!???!

Thanks clarifying that quote. I forgot to put the source.

Data

espaeth
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said by DataRiker:

those margins are not easy to come by, but from most educated guesses I have seen are anywhere from 1500 - 10,000%, not to shabby.
»finance.google.com/finance?q=lvlt

How can you have a 1500-10,000% margin on bandwidth and end up with a negative profit margin?

ThrowDemsOut
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Re: Hey Comcast!???!

said by espaeth:

said by DataRiker:

those margins are not easy to come by, but from most educated guesses I have seen are anywhere from 1500 - 10,000%, not to shabby.
»finance.google.com/finance?q=lvlt

How can you have a 1500-10,000% margin on bandwidth and end up with a negative profit margin?
You can't. But then you live in the real world with the rest of us.
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4 edits
How can you have a 1500-10,000% margin on bandwidth and end up with a negative profit margin?

Spend more money than you earn? Bad management / and or investments? Have you been paying attention to the US news lately.

For being a self proclaimed rich investment type, you don't know much about business.

espaeth
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1 edit

Re: Hey Comcast!???!

said by DataRiker:

For being a self proclaimed rich investment type, you don't know much about business.
According to Level(3)'s own presentations their gross profit margin is between 55-60%.

Source: »files.shareholder.com/downloads/···2008.pdf

I agree that your argument is much more compelling if you just pull numbers out of your ass though.

DataRiker
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4 edits

Re: Hey Comcast!???!

This says nothing about the margins on Bandwidth. Nice try though. You won't find it easily, since its a nasty little secret. I'm not worried because you won't find a credible source that says otherwise.

If I'm not mistaken Cogent's modest take was stated at 1500% on this site before, and they are the bottom of the barrel when it comes to cost, so I imagine that 10,000% would not be out of line for Level 3 comm.

By far the highest expense (besides the initial fiber) is exchanges brokered with other backbone carriers, and these were kept quiet until the age of Cogent, who undercut other providers, something like 1/5th the price. I guess your probably right and cogent just found some "cheap photons"...

As for making up numbers, these are what I have taken just from my limited reading on the subject, and there is not much. I am not an expert by any means, but this is what I have seen quoted before.

Having said that, I know there is only an indirect link between the profit margin of bandwidth on fiber lines a companies gross profit. Level 3 is subject to Wall St. and that means at this point you basically means a companies books mean N O T H I N G. High profits one day, and 70 billion dollars in dept the next.

sporkme
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said by DataRiker:

How can you have a 1500-10,000% margin on bandwidth and end up with a negative profit margin?

Spend more money than you earn? Bad management / and or investments? Have you been paying attention to the US news lately.
Yeah, try being a customer. Network is great. The rest is a total mess. Their management is terrible, the buying sprees they went on made the mess worse.

NetAdmin1
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join:2008-05-22
said by ThrowDemsOut:

And it also gives the lie to those claiming there is no backbone bandwidth crunch.
That's not necessarily an indication of a bandwidth crunch. It is good planning. It appears that Verizon is putting bandwidth in place to deal with an all IP future where telephone, SDTV and HDTV all ride the same network as traditional data. Now that Verizon has gotten into the content business with FiosTV, they have to contend with distribution of live and on-demand video content from national super-headends.

Capacity problems, no. Future proofing, yes.

Providers like Verizon aren't fly by night operations where they let circuits run at near capacity.
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Re: Hey Comcast!???!

said by NetAdmin1:

said by ThrowDemsOut:

And it also gives the lie to those claiming there is no backbone bandwidth crunch.
That's not necessarily an indication of a bandwidth crunch. It is good planning. It appears that Verizon is putting bandwidth in place to deal with an all IP future where telephone, SDTV and HDTV all ride the same network as traditional data. Now that Verizon has gotten into the content business with FiosTV, they have to contend with distribution of live and on-demand video content from national super-headends.

Capacity problems, no. Future proofing, yes.

Providers like Verizon aren't fly by night operations where they let circuits run at near capacity.
Well stated. My thoughts exactly, but I no longer bother with the technical corrections of TK's posts. Its a full time job.

jlivingood
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3 edits
Maybe you missed when we did this in the network core in March of this year with Nortel (with their Adaptive Optical Engine - also mentioned in the VZ press release), »ietf71.comcast.net/?p=44, and June with Cisco, »newsroom.cisco.com/dlls/2008/pro···08c.html.

(They differ slightly, but you get the point.)

Jason
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funchords
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Re: Hey Comcast!???!

said by jlivingood:

Maybe you missed when we did this in the network core in March of this year with Nortel (with their Adaptive Optical Engine - also mentioned in the VZ press release), »ietf71.comcast.net/?p=44, and June with Cisco, »newsroom.cisco.com/dlls/2008/pro···08c.html.
Maybe you missed my smileys (I've been trying to figure out a way to make fun of the turtles for a long time.)
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Dogfather
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Re: Hey Comcast!???!

Go to ATM, they make fun of a turtle quite frequently.

funchords
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Re: Hey Comcast!???!

said by Dogfather:

Go to ATM, they make fun of a turtle quite frequently.
(??) huh?

(BTW, are blocking IMs generally or just from me?)
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telcolackey
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4 edits

Poo poo Comcast

quote:
"In other words, both Level 3 and Verizon are meeting their traffic needs by combining multiple 10-Gig wavelengths because that's the only technology available at the right price when the existing networks were built."

hmm... only 10G?

»newsroom.cisco.com/dlls/2008/pro···08c.html

quote:
"The implementation tested by Comcast and Cisco is consistent with the emerging IEEE 802.3ba 100GE standard and validates the use of 100GE and IPoDWDM technologies over Comcast's own production network, which was the first, and is currently the world's largest 40G IPoDWDM network."

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iansltx

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Re: Poo poo Comcast

SprintLink is OC-192 (~10Gbit), so why not Verizon? But 100 Gbit is verynice.

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