Intel spends $50m on tunable laser techNews from E-InSiteContinuing its rampage into the optical communications market, Intel has purchased New Focus' network tunable laser business and technology for about $50m in cash.
The deal gives Intel another piece of the dense wavelength division multiplexing (DWDM) puzzle it has been piecing together over the last couple of years. The technology acquisition allows Intel to offer small form factor tunable optical transceivers for DWDM equipment.
This tunable laser technology would allow Intel to provide service providers with dynamic provisioning capabilities. This is where the available capacity of optical networks is shifted to quickly add bandwidth in response to customer needs.
DWDM is a next generation technology that increases the available bandwidth for network service providers by separating light waves that travel over existing optical fibres into as many as 80 individual wavelengths, each capable of carrying data at 10Gbit/s.
DWDM technology requires each wavelength to have a separate fixed wavelength laser to drive a specific wavelength of light over the fibre. Thus a 40-channel DWDM device would require equipment manufacturers to stock 40 different transceivers, each with a different laser. Tunable transceivers are designed to send different wavelengths of light over one fibre, allowing equipment manufacturers to lower costs by only qualifying and stocking a single tunable transceiver rather than different fixed wavelength parts. Tunable laser technology has traditionally been the domain of optical startups such as Agility Communications.
Intel will license technology and supply certain products to New Focus, as part of the agreement. Intel gains about 40 employees from New Focus, which will become part of Intel's communications group and be based in Newark, California. New Focus intends to continue supplying products to the test and measurement market segments.
"This transaction will also benefit New Focus by providing us with advanced tunable laser transponders from Intel that we will combine with our products to create more advanced test and measurement solutions for our customers," said Tim Day, CTO and co-founder of New Focus.
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