We've been representing Integra Networks for years and we love this play. Carriers are all too often inclined to buy their optical electronics, also called pluggables or SFP's from OEM's, such as Cisco, Alcatel, Juniper etc. However, both the legal and technical landscape have involved in such a way to allow network providers the ability to disaggregate the procurment of the OEM box from the Optics which are often added as the system grows. Since this is a mature technology, 3rd party optics have proven to retain high quality while being significantly less expensive.
We did a recent analyis for a medium sized CLEC and determined that they could reduce Capex by $12 million annually by switching to 3rd party optics from folks like Integra Networks. That's big money. Integra also has increased CSat (another of our focus areas) by developing a operational process which allows them to frequently retain inventory of optics, locally in the US and then program the pluggables upon order. This has allowed them to sometimes ship optics overnight versus OEM timeframes of up to 6 weeks.
Here is another example:
One of the nation's largest cable operator has been able to dramatically reduce the cost of optical components by buying their optical boxes and plug-able transceivers from separate vendors. Their overall optical box cost is reduced by over 30% with improved customer service and no quality degradation. A major Cable Operator saved over $200k on one purchase order we reviewed. Another major carrier received 75 transceivers by hand delivery overnight to save a job after OEM components failed to arrive on time.
Please contact us if you'd like to learn more about this opportunity to save as well as turn up your revenues faster.
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