Users face wait for telco savings



The development of ultra-fast optical switches and routers was a key theme of Networld+Interop in Las Vegas this week, but users may have to wait for another...



The development of ultra-fast optical switches and routers was a key theme of Networld+Interop in Las Vegas this week, but users may have to wait for another two years before their communications costs come down.

At the pre-show NetEvents symposium, Desh Deshpande, chairman of Sycamore Networks, said that business users would not see any reductions to their bills for another 12 to 24 months, despite carriers in Europe adopting optical technology that enables the telecoms firm to carry far more traffic over each fibre strand.

Sycamore was recently set up and has come through a successful IPO. It aims to supply high-speed routing kit to the main telecommunications providers.

Deshpande's previous experience of setting up Cascade which helped to build high-speed networks for telecoms giants including BT, Sprint and many others, before selling the company to Lucent, should stand him in good stead to increase traffic throughput for the big telecoms firms.

But Deshpande explained that while getting a lot more for their fibre would soon have a positive effect on the bottom line of the telecoms firms, the formula for passing on the benefits for the likes of Barclays Bank and Marks & Spencer was still to be negotiated.

The telecoms providers are working on moving from systems that move deliver data at billions of bits per second to those capable of transporting files at a trillion bits per second.

Unlike the internet service providers who will be taking up this technology to cut costs in response to the growth of free internet access, the telecoms firms have no excuse but to pass on the savings. But, said Deshpande, it would be up to the users to make their claim to get savings of their own.

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