Furukawa and Capella establish strategic partnership

Sept. 20, 2006
SEPTEMBER 20, 2006 -- Under the partnership, Furukawa and Capella will each independently source and manufacture wavelength-selective switches.

SEPTEMBER 20, 2006 -- The Furukawa Electric Co., Ltd. (search Furukawa) and Capella (search Capella) have entered into a strategic partnership to manufacture and market wavelength selective switches (search wavelength-selective switches) based on Capella's patented design and technologies. The companies claim that Capella's best-in-class WSS technology combined with Furukawa's excellent reputation and large-scale business with system providers will greatly increase the global supply of WSSs.

Under the partnership, Furukawa and Capella will each independently source and manufacture WSSs. Furukawa will manufacture WSSs at its own factory in Japan and market them under the 'FITEL' brand. Capella will continue to manufacture its WavePath product line at Fabrinet's Pinehurst facility near Bangkok, Thailand.

WSSs, the core of multi-degree reconfigurable optical add/drop multiplexers (ROADMs), are in strong demand by telecommunications carriers and cable operators. ROADM technology is designed to transform the traditional telecommunications network to cost effectively deliver broadband services such as voice-over-IP (VOIP) and digital video (IPTV).

According to market research firm Infonetics, ROADM switch revenue in the metro market alone is forecasted to grow at a compound annual rate of 46% during the next five years. This explosive growth is being fueled by the flood of IP traffic generated by critical broadband applications such as video on demand. U

Also, as part of the partnership, Furukawa says it will take an equity position in Capella to further solidify Capella's leadership position and ensure market acceptance of their WSSs.

"Furukawa's selection of Capella is a strong endorsement of our product line and provides great assurance for our customers," contends Larry Schwerin, president and CEO of Capella. "This is another essential step in our plan and commitment to being the leader in this market. We are now uniquely positioned to leverage various business opportunities as we jointly advance Capella's current WSS products to meet increasing customer needs. Moreover, this is not only a major step for both Furukawa and Capella, but for the industry as a whole, as we are ensuring global supply of the world's preferred wavelength management subsystem," he adds.

"The distinctive advantages of Capella's WavePath portfolio clearly made it the preferred WSS for Furukawa as it is the only WSS that provides the full range of desired switching and monitoring functionality required for true deployment into ROADM-enabled networks," reports H. Ogoshi, vice president of Furukawa's Telecommunications Company. "This Partnering enables us to enhance and strengthen Furukawa's optical product line-up and address our customers' ROADM and Photonic Cross Connect (PXC) needs in a very short time. We believe this will be a successful partnership and look forward to working with the Capella team on current and future products."


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