Infinera Unveils the Network Efficiency Quotient

Thu Jun 14, 2012 11:00am EDT

* Reuters is not responsible for the content in this press release.

  SUNNYVALE, CA, Jun 14 (Marketwire) -- 
Infinera (NASDAQ: INFN), a leading provider of digital optical
communications solutions, announced today the network Efficiency Quotient
(EQ). Network EQ is a framework for comparing next-generation optical
transport network architectures, enabling network operators to evaluate
the ripple effect of architectural decisions on the total cost of
ownership (TCO). As part of the announcement, Infinera unveiled two new
applications that enable rapid estimation and analysis of transport
network EQ, the EQ Estimator and EQ Power Analyzer. Additionally,
Infinera is introducing EQ Engagement which provides select customer
engagements with Infinera consultants for network specific TCO analysis.
As a relative measure of optical transport network efficiency, EQ
compares the impact of capital expenses (CapEx) and operating expenses
(OpEx) of architectural alternatives over time. The results show that
some operators may be able to reduce TCO by up to 70% with an optimal
architectural approach. 

    As optical transport bandwidth requirements grow -- driven by mobile,
cloud and video services -- operators have to invest in scaling their
networks to meet these demands. Simultaneously, operators must maintain
or improve CapEx and OpEx over revenue financial ratios to satisfy their
investors. Network operators can no longer meet both of these objectives
by simply increasing optical capacity, such as moving from 10 gigabits
per second (Gb/s) to 40 (Gb/s) or 100 (Gb/s) optical transmission speeds;
they also need to deploy modern architectures that deliver scalability
while converging network layers to simplify operations and boost
efficiencies. An architecture that integrates OTN switching with WDM
transmission without compromise can dramatically improve network EQ,
helping network operators improve their bottom line over legacy
architectures that rely only on WDM transmission, without the benefits of
OTN switching. 

    The TCO benefits of an integrated OTN switching and WDM architecture can
be further enhanced through the use of systems that utilize photonic
integrated circuit (PIC) technology. PICs enable converged OTN/WDM
architectures without compromise and provide important additional
benefits; rapid system commissioning to lower installation costs;
service-ready bandwidth to enable operators to respond faster to customer
service requests; lower power use, higher density to reduce rack space
and co-location costs; reduced numbers of line-cards and fiber
connections to simplify network operations; and greater reliability for
improved service availability.

    "Through several years of deploying and maintaining Infinera technology
across our optical transport network we have enjoyed the improved network
efficiencies enabled by a system that combines OTN switching with
Photonic Integrated Circuit-based WDM optics," said Randy Nicklas, senior
vice president and chief technology officer at XO Communications. "By
working with Infinera, we've been able to realize the benefit of
increasing wavelength efficiency while reducing space and power
consumption compared to alternative solutions."

    "Our recent OTN Deployment Strategies survey showed that 75% of operators
plan to deploy OTN switching in their networks. More than half of these
operators want OTN switching integrated with WDM, as they see it as a
means to improving network efficiency and lowering network lifecycle
costs. It is good to see that Infinera has developed a framework that
will help operators evaluate their architectural choices," said Andrew
Schmitt, Principal Analyst, Optical at Infonetics Research.

    "In conversations with service providers around the world, we are seeing
increased focus on driving efficiencies from the transport network to the
bottom line of their income statement," said Tom Fallon, Infinera CEO.
"The EQ framework simplifies the analysis of transport network
architectures as they impact total cost of ownership, providing operators
a quick way to recognize opportunities to improve network efficiency for
their bottom line."

    For more information on Infinera's EQ metrics or to find your network's
EQ score, please visit www.infinera.com/go/eq. The EQ Estimator and EQ
Power Analyzer are available on PCs, tablets and smartphones.

    About Infinera
 Infinera specializes in Digital Optical Networking
solutions that are designed to continually improve the economics of
optical networking by combining the speed of optics with the simplicity
of digital. Infinera is unique in its use of breakthrough semiconductor
technology: Large Scale Photonic Integrated Circuit (PIC). Infinera's
platforms leverage PIC technology to provide customers with a
service-ready architecture that enables faster time-to-revenue and
greater profitability through network efficiency and the ability to
rapidly deliver differentiated services without reengineering their
optical infrastructure. For more information, please visit
http://www.infinera.com/.

    This press release contains forward-looking statements including, among
other things, statements relating to Infinera products and applications;
that The TCO benefits of an integrated OTN switching and WDM architecture
can be further enhanced through the use of systems that utilize photonic
integrated circuit (PIC) technology; that the PIC-enable converged
OTN/WDM architectures without compromise and provide important additional
benefits including; rapid system commissioning to lower installation
costs; service-ready bandwidth to enable operators to respond faster to
new service requests; lower power use, higher density to reduce rack
space and co-location costs; reduced numbers of line-cards and fiber
connections to simplify network operations; and greater reliability for
improved service availability. These forward looking statements are based
on our current expectations. Actual results may vary materially from
these expectations as a result of various risks and uncertainties,
including, but not limited to, aggressive business tactics by our
competitors, our dependence on a single product, our reliance on
single-source suppliers, and our ability to respond to rapid
technological changes. Further information about these risks and
uncertainties, and other risks and uncertainties that affect our
business, is contained in the risk factors section and other sections of
our annual report on Form 10-K filed with the Securities and Exchange
Commission on March 6, 2012, as well subsequent reports filed with or
furnished to the SEC. These reports are available on our website at
www.infinera.com and the SEC's website at www.sec.gov. Infinera assumes
no obligation to, and does not currently intend to, update any such
forward-looking statements.

    

For media and analysts:

Media:
Anna Vue
Tel. (916) 595-8157
avue@infinera.com

Investors:
Jenifer Kirtland
Tel. (408) 543-8139
jkirtland@infinera.com 

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