Source Photonics, based in West Hills, California, has expanded investments in its 10G PON Optical Line Terminal (OLT) and Optical Network Unit (ONU) product lines. The company intends to use the increased investment for the anticipated fixed access network upgrade cycle from Ethernet Passive Optical Networks (EPON) and Gigabit Passive Optical Networks (GPON) to 10GEPON and eventually Passive optical networks capable of tens of Gigabits of bandwidth.
According to the firm, the investment, which is at all levels of manufacturing, includes laser chips and advanced optical modules. Source Photonics says that the investment will enable the firm to continue to be the highest volume vertically integrated provider in the market.
While several industry participants have announced an exit from the FTTx transceiver market due to declining competitiveness and eroding margins, Source Photonics plans to increase investments by five times the prior year to support the expected rapid growth during the 10G migration. The company says it is concurrently investing in the main technologies for future 25G and 100G migrations.
The company’s investments include increased capacity to support EML laser diode and optical sub-assembly volumes that customers and policy regulators project. Doug Wright, CEO of Source Photonics commented, “Over the last two years, we successfully ramped our 100G product line to world class levels of performance. We are excited to expand this operating infrastructure as we support early deployments of next generation FTTx networks.”
The 10GEPON OLT modules manufactured on the expanded lines are in production and available for order. The company intends to release XGPON and XGSPON OLT modules later this year that will leverage the same manufacturing assets.