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TELECOMNEXT: Wave7 Optics announces two new customers


21/03/2006

LAS VEGAS: Wave7 Optics this week announced two new customers who represent two new sale categories in which it expects major growth.

The company said it is supplying its FTTP gear to CableOne for green field deployment in Rio Rancho, near Albuquerque, New Mexico, in its first announced sale to an MSO. And it is announcing an earlier sale of its gear to Sydfyns Elforsyning, a municipal power utility company in Svendborg, Denmark.

Wave7 is expecting significant growth in sales outside North America, said Emmanuel Vella, chief marketing officer and executive vice president of operations.

“About 80 to 85 percent of our sales have been in North America, but by this time this year, that percentage will change drastically, and not because our North American sales are going down,” Vella said. “We have started to secure deals that will contribute substantially to our revenue this year.”

Going forward, Wave7 could earn as much as 40% of its revenue abroad.

Sydfyns is building an FTTP network that will compete with the local incumbent service provider. It already reaches 1200 households and will hit 5000 by year’s end and ultimately 30,000 homes.

“We are seeing the same Tier 2 trend in Europe that we saw here,” he said. “The incumbent service providers are not doing a good job and there is no cable deployment to speak of.”

Wave7 is on the cusp of landing more U.S. municipal power companies, Vella said, but some deals have been delayed by political opposition from cable and telephone companies.

“What we are seeing is that they are looking at alternative ways of funding, instead of using municipal bonds,” he said. “There is money available in the financial markets.”

Cable companies may also be a “game-changer” as they look to FTTP for green field developments. Wave7 is able to integrate its FTTP system into the existing cable network, allowing CableOne to offer RF video and Voice over IP using its existing infrastructure.

Meanwhile, Wave7’s traditional Tier 2 and Tier 3 customer base continues to boom, Vella said.

“We’re buried in RFPs from rural companies,” he said, with a laugh. “The deals have gotten bigger – we’re seeing larger rural companies do it. Plus, they are finding RUS money is still available.”



 

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