vol. 4 no. 1 january 2010

Vol. 4 No. 1 January 2010

Military & Aerospace Fiber Optics Newsletter is published monthly by Information Gatekeepers Inc.

1340 Soldiers Field Rd. Ste. 2, Boston, Massachusetts 02135, USA; Fax: (617) 782-5735; Editorial telephone: (617) 782-5033;Circulation telephone: (617) 782-5033, (800) 323-1088 (Outside MA); Email: [email protected]; Web: www.igigroup.comPublisher/Editor: Dr. Paul Polishuk Associate Editor: Dr. Hui Pan Managing Editor: Bev WilsonCirculation Mgr: Jaime Perez Subscription rates: $695 per year, US and Canada; $745 per year elsewhere.Discounts available for multiple subscriptions and licenses (see back page).Information Gatekeepers Inc. 2010. All rights reserved.No part of this publication may be reproduced, stored in a data base, or transmitted without prior written permission of the publisher.For photocopying authorization, contact Copyright Clearance Center, 222 Rosewood Dr., Danvers, MA 01923, Tel: (978) 750-8400.

In This Issue...

TOP NEWS

DOD releases defense reviews, 2011 budget proposal, and

2010 war funding supplemental request

President Barack Obama sent to Congress a proposeddefense budget of $708 billion for fiscal 2011.

The budget request for the Department of Defense (DoD)includes $549 billion in discretionary budget authority to fundbase defense programs and $159 billion to support overseascontingency operations (OCO), primarily in Afghanistan andIraq. This proposal continues the reform agenda establishedin last year’s DoD budget request and builds on the initiatives

Army Corps of Engineers

asks for industry bids on

fiber-optic cable and

related supplies ............ 2

Mohawk announces the

addition of Net-Reps Inc. to

their sales force ............. 3

Tunable bandpass filters

now offered in 390-700nm

range ............................. 4

AFL launches new mass

transit fiber-optic cable...5

3SAE partners with DPM

Photonics ...................... 6

Modification of Process to

Accept Applications for

Service to Cuba and

Related Matters ............. 7

First Segment of EASSy

Completed ..................... 8

Copyright 2010 Information Gatekeepers Inc. 1340 Soldiers Field Rd. Ste. 2 Boston, MA 02135 Tel: (617) 782-5033 Web: www.igigroup.com

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Military & Aerospace Fiber Optics January 2010

identified by the 2010 Quadrennial DefenseReview (QDR) and 2010 Ballistic MissileDefense Review (BMDR).

The QDR examines DoD strategies andpriorities. It assesses the threats andchallenges that the nation faces and re-balances DoD’s strategies, capabilities, andforces to ensure the U.S. military has theflexibility to address today’s conflicts andtomorrow’s threats.

The BMDR evaluates the ballisticmissile threat to the U.S. and its allies andarticulates policy. It determines the appropriaterole of ballistic missile defense in the country’snational security and military strategies.

“The fiscal 2011 budget request buildson the reforms begun in last year’s defensebudget,” said Defense Secretary Robert Gates.“These substantial changes to allocate defensedollars more wisely and reform thedepartment’s processes were broadened anddeepened by the analysis and conclusionscontained in the Quadrennial Defense Review.”

The fiscal 2011 base budget requestrepresents an increase of $18 billion over the$531 billion enacted for fiscal 2010.

This is an increase of 3.4 percent, or 1.8percent real growth after adjusting for inflation.

The DoD needs modest real growth tomaintain, train, and equip the forces thatsustain our wartime efforts.

The fiscal 2011 OCO request will provideadditional resources needed to sustain U.S.forces in Operation Enduring Freedom – inAfghanistan and elsewhere – and OperationIraqi Freedom. Included are funds for pay andbenefits, logistics and other support, forceprotection, continuing efforts to counteractimprovised explosive devices, as well asfunding to fully support the buildup inAfghanistan and to carry out a responsibledrawdown in Iraq.

“The choices made and priorities set inthese budget requests and strategic defensereviews reflect America’s commitment to

succeed in the wars we are in while makingthe investments necessary to prepare forthreats on or beyond the horizon,” said Gates.

Also accompanying the 2011 budgetproposal is a fiscal 2010 supplemental requestof $33 billion to support the added costs of thePresident’s new strategy in Afghanistan andstrengthen U.S. force levels with approximately30,000 additional troops.

“To make sure we have the resourcesneeded to support our troops deploying to theAfghanistan theater, I will be asking theCongress to enact the supplemental by spring2010,” said Gates.

Key highlights of the proposed DoDbudget are outlined in the attached summaryand charts. For more information and to viewthe entire fiscal 2011 budget proposal, pleasevisit http://www.budget.mil and download the“FY 2011 Budget Request Overview Book.”

The 2010 QDR and BMDR are availableonline at www.defense.gov/DefenseReviews.

Transcripts from applicable budget andstrategic defense review briefings can also beviewed at www.defense.gov/transcripts.

BID

Army Corps of Engineers asks for industry

bids on fiber-optic cable and related

supplies

The Vicksburg District of the U.S. ArmyCorps of Engineers in Vicksburg, Mississippi,are asking the fiber optics industry to bid on acontract to provide several thousand feet offiber-optic cable and related supplies.

The solicitation number for this federalrequest for quotation (RFQ) is W912EE-10-T-0021. Specifically, the Corps of Engineersneeds the following:

- 6,880 feet of Corning outdoor fiber-optic cable, part number FAN-BT25-06 or equivalent;

- 8,000 feet of Belden multi-conductorcable, part number Belden 5300F1


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or equivalent;- 48 UniCam multimode composite

ferrule connectors;- 10 Corning buffer tube fan-out kits,

part number FAN-BT25-06 orequivalent;

- nine NVT-214A-M video transceivers,part number NV-214A-M;

- eight Corning wall-mountable fiberconnector enclosure, part numberWCH-02P-1215T or equivalent; and

- eight NVT-NV-872 active videoreceivers, part number NV-872-A.

Companies interested should submitprice quotes no later than February 12, 2010.Send quotes to Leah McCain at the Army Corpsof Engineers Vicksburg District by e-mail [email protected], or by post atU.S. Army Corps of Engineers, ATTN: Leah B.McCain, 4155 East Clay St., Vicksburg, MS39183.

For questions or concerns, contact LeahMcCain by phone at 601-631-7905, or at the e-mail address above. More information is onlineat https://www.fbo.gov/spg/USA/COE/DACA38/W912EE-10-T-0021/listing.html.

BUSINESS

Mohawk announces the addition of Net-Reps

Inc. to their sales force

Mohawk, a manufacturer of copper cableand fiber-optic products, announced theappointment of Net-Reps Inc. to their salesforce. Net-Reps Inc. was founded by JesseMeyer, RCDD and Ryan McCray in 2008.

Jesse has worked in the datacommunications industry for over 14 years. Hehas experience in distribution, contracting, andmanufacturer representation. He has cultivatedmany strong relationships in the SouthernVirginia market and has a B.S. in Psychologyfrom Virginia Tech.

Ryan has been actively selling in the datacommunications industry for over 10 years.

Ryan has developed solid relationships withdistribution, contractors, and end-users in thenorthern Virginia and Maryland markets. Ryanhas a B.S. in Education from the University ofMaryland.

Through knowledge, energy, service, andintegrity, Net-Reps Inc. creates and maintainslong-term relationships with individuals in theentire sales channel (manufacturer, distribution,contractors, end users, specifiers) to increasemarket share and give their manufacturers thebest possible representation.

NEW PRODUCTS

Mohawk announces the release of their 6

LAN Plus cable

Mohawk, a manufacturer of copper cableand fiber-optic products, announced the releaseof our 6 LAN Plus Category 6e copper cable.With today’s evolving data capabilities,installation of an enhanced Category 6 cableprovides assurance of current and future dataneeds with one installation. 6 LAN Plus is apatented, cost-effective mid-grade Category 6solution with exceptional data transmissionsupport.

6 LAN Plus is an enhanced unshieldedtwisted pair Category 6e cable for use inhorizontal cabling systems per TIA-568-C. Itexceeds performance requirements of TIA-568-C and ISO/IEC 11801 Category 6. Constructedwith #23 AWG solid bare copper, the insulatedconductors are assembled into four tightlytwisted pairs featuring flat core separatortechnology and ripcord under an overall jacket.6 LAN Plus is listed as C(ETL)US type CMP forplenum and C(UL)US type CMR for Riser.Plenum and riser are ETL verified to TIA-568-C.2 Category 6 and Mohawk’s internal stringentperformance requirements.

The company commented, “The 6 LANPlus cable is an excellent addition to our OpenArchitecture philosophy, which allows flexibleand warranted options for your complete


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Campus-Wide network system installation. 6LAN Plus is compatible with our numerousconnectivity partners for high bandwidth networkinstallations.”

Mohawk releases newly redesigned tactical

fiber-optic cable

Mohawk, a manufacturer of copper cableand fiber-optic products, announced the releaseof their newly redesigned tactical fiber cable,which they say is a sure fit in today’s harshapplications. The robust cable design wasdeveloped and constructed from rugged militarymechanical standards and will stand up to harshfield abuse.

The company says that this re-deployable cable is ideal for use in broadcastapplications, military communications, mining,and industrial applications.

Mohawk’s tactical fiber is designed toperform at the highest standards, even whenexposed to harsh elements and tight bendradiuses.

The cables are durable and resistant toabrasion, cut-through, and crushing. They arealso smaller and lighter than most traditionalcables used in these applications, resulting insmaller bend radius capability and improvedflexibility in a broad range of outdoortemperatures and weather conditions.

Mohawk also offers its tactical fiber infactory preterminated assemblies. SC/ST/LC/FC fan-outs or SMPTE 358 hermaphroditicconnectors are available in custom lengths.

Conolog starts production of ‘GlowWorm’

fiber-optic detector

Conolog Corporation an engineering anddesign company that provides digital signalprocessing solutions to global electric utilities,announced that it has completed field testingand started production/marketing of its“GlowWorm” fiber-optic detector that may beused in any fiber-optic line or network withoutthe need to cut the cable.

The president of Conolog, Marc Benou,stated, “Our ‘GlowWorm’ surpassed ourexpectations in field tests and demonstrated itscapabilities in fiber-optic networks as well aslines.

This application of passive detectiontechnology is unique to Conolog and will allowutilities and other customers to quicklydetermine the source of a fiber-optic signalfailure.”

Benou concluded, “Conolog productscontinue to demonstrate the global applicationsof our products, ease of installation and ourcommitment to low maintenance and long termsecurity and reliability.”

Tunable bandpass filters now offered in 390-

700nm range

Available in 25.2 x 35.6 x 2.0 mm sizes,VersaChrome bandpass filters offer tuning rangeof greater than 12 percent of normal-incidencewavelength and average transmission of greaterthan 90 percent with steep edges and widebandblocking.

Applications include fluorescencemicroscopy, imaging, and quantitation, as wellas spectral imaging. Due to their polarizationinsensitivity, optical quality, and damagethreshold, filters are also suited for wide rangeof laser applications.

US Conec offers cleaning tool for ODC-

Series, outdoor 1.25-mm connectors

US Conec Ltd. has released the IBCBrand Cleaner ODC. This mechanical cleaningtool uses a dry cleaning strand to remove dustand liquid residue from the end face of plug andsocket ODC-series connectors.

This version of the IBC cleaning toolsfeatures a new, highly flexible cleaning tip anda ribbed alignment cap.

These features, combined with areinforced nozzle, make the IBC Brand CleanerODC tool well suited for cleaning connectorsdeployed outdoors, says US Conec.


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The tool uses what the companydescribes as “a simple pushing motion” forengagement and provides an audible click toalert the technician when the tool has been fullyengaged. The tool locks at the end of life,preventing accidental cross contamination.

The IBC tool is designed to enable itscleaning strand to be guided precisely acrossthe cleaning tip to ensure consistent contact withthe center of the ferrule while not scratching theend-face. This feature of the IBC tool eliminatesthe need to re-install the cleaning strand acrossthe cleaning tip as is the case with manycompeting mechanical cleaners, US Conecasserts.

The IBC Brand Cleaner ODC reducescleaning costs to less than $0.25 per cleaning,says the company. IBC Brand Cleaners provideimproved reliability, better cleaningperformance, faster cleaning times, and lowercleaning costs than current methods such assticks and swabs, US Conec concludes.

AFL launches new mass transit fiber-optic

cable

AFL Telecommunications announces theintroduction of its new Low Smoke Zero Halogen(LSZH) Loose Tube Cable with

Thermoset Jacket for mass transitapplications. Consisting of a thermoset jacket,the low-smoke zero-halogen loose tube cableis specifically designed for harsh environments.The cable design includes a dry-core waterblocking system, SZ-stranded core for easy mid-span access and a flame retardant, highlychemical resistant, cross-linked UV resistantouter jacket.

The Mass Transit cable is suitable forsubway tunnels, railway right-of-ways, mining,airport terminals, confined space pathways andsteam tunnels.

Available in fiber counts up to 60 insingle-mode or multimode. The cable is listedto NEC OFNG-LS and suitable for outdoor andindoor installations.

For more detail on this product and otherfiber-optic cables and accessories, visitwww.AFLtele.com.

Opnext delivers world’s first ultrahigh speed

SMT multiplexer IC for 100G coherent

transponders

Opnext Inc., a provider of state-of-the-art laser technology and hi-h speed opticalcommunications, announced that it hasdeveloped the world’s first ultrahigh speedSurface Mount Technology (SMT) multiplexerintegrated circuit (IC) for 100Gbps applications.

The SiGe (silicon germanium) 0.13-micrometer process technology chip wasdesigned in-house to be used inside Opnext’scoherent 40Gbps and 100Gbps transpondermodules and subsystems.

The 128Gbps multiplexer IC transmitsthe data in 32Gbps lanes suitable fortransmission using the DP-QPSK modulationscheme, as documented in the OIF 100G UltraLong Haul DWDM Framework, for 100GbE andOTU4 transmission in the Wide Area Network(WAN).

The multiplexer IC employs ball grid array(BGA) technology to allow standard SMTmanufacturing processes. This enables higher-density transponder designs with ICs mounteddirectly onto the printed circuit boards (PCBs).

“One of the major challenges ofincreasing 40G production was themanufacturability, quality and performanceconsistency of the hardware,” said RobertoMarcoccia, vice president of R&D for Opnext’ssubsystems business unit.

“This SMT IC eliminates the radiofrequency (RF) connectors and coaxial cabling,a major source of these volume manufacturingissues.”

Opnext continues to employ selectivevertical integration on components like this newSMT IC with the goal of delivering the lowestcost and highest performance 100Gbps OIFMSA compliant solution to its OEM partners.


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PARTNERSHIP

3SAE partners with DPM Photonics

3SAE Technologies Inc. announced ithas signed a consulting and distributionagreement with DPM Photonics to make 3SAETechnologies’ new large-diameter fiber fusionsplicing and preparation technologies availableto high-power fiber laser manufacturers and tomilitary, aerospace, and industrial medicalmarkets throughout the United States.

The association between DPM Photonicsand 3SAE Technologies personnel dates backto 2003, during the advent of large mode areafiber fusion splicing and cleaving.

The partnership between the twocompanies is truly synergistic, combining yearsof optical component and fiber-based deviceexperience with a strong engineeringbackground in fusion splicing and fiberpreparation techniques for their assembly andmanufacture.

“DPM Photonics is major addition to ournationwide distribution channel,” said DonGrasso, chief executive officer of SAETechnologies Inc.

“The synergy between our products andtheir services make DPM Photonics a uniquepartner that can discuss detailed customerapplications on a technical level as well assupport custom product development.”

DPM Photonics was founded in February2009, offering consulting services in the areasof fiber optics, fiber-based components, fiberlasers/amplifiers, precision optics and opticaldesign.

Its clients include start-up ventures, majorcorporations, and government agencies. It hassince expanded its business to include productrepresentation and development services.

Its product lines enable users andfabricators of mid- to high-power active devicesand include a wide variety of high-powerprecision optics and fiber-based components(PM and non-PM).

NETWORKS

XO expands international reach to Latin

America via south Texas gateway serving

Mexico

XO Communications announced that itis increasing its international networkconnectivity to Latin America by establishing anew gateway on the U.S.-Mexico border inMcAllen, Texas. XO is also expanding its fibernetwork in southern Texas by 800 miles,providing greater diverse long-haul routes toSan Antonio and Houston through Laredo,McAllen, Harlingen, Corpus Christi, and Victoria.The increased connectivity will expand domesticand international customer access to XO’s Tier1 IP backbone and 28,000 route-mile U.S. long-haul/metro network (1.2 million-total-milenetwork).

With a presence in the largest U.S.-Mexico cross-border telecom corridor, XO nowhas the ability to provide direct network accessto dozens of U.S. and Mexican telecom carriersthrough a carrier-neutral facility in McAllen. Thisinternational gateway in McAllen representsXO’s fourth to Latin America, with others inMiami, San Diego, and Los Angeles.

Mexico is the third-largest destination fortelecom traffic from the U.S., with the U.S.-Mexico voice, private-line, and IP servicesmarket totaling nearly $1 billion annually (FCCInternational Report, 2009). In addition, thecountry’s mobile subscriber base is growing 10percent annually, and its broadband subscriberbase is expanding 35 percent annually,according to COFETEL, Mexico’s federalgovernment telecom regulator. “With double-digit growth in mobile and broadband servicesin Mexico, the Texas-Mexico border is a naturalpoint for XO’s network expansion,” said DonMacNeil, vice president of XO Carrier ServicesOperations. “By expanding the reach of ournationwide network and establishing points ofpresence across Southern Texas, XO will beable to offer carriers and their customers


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competitively priced, high-speed private line(DS3-10G wave), IP/MPLS transit, andwholesale voice termination services.”

This network expansion comes on theheels of XO’s announcement of increasedconnectivity throughout the Inland Empire regionof Southern California. These expansionssupport the company’s strategy to broaden itsservice areas within existing XO markets andto expand into new markets.

SUBMARINE CABLES

FCC Releases Public Notice Regarding

Applications to Connect Submarine Cables

to Cuba

The FCC has issued a public noticemodifying its application process for submarinecable service to Cuba. These changes arebased upon a letter received from the U.S.Department of State. The following is the originalPublic Notice.

Modification of Process to Accept

Applications for Service to Cuba and Related

Matters

By the International Bureau:The Commission has received a letter

dated January 12, 2010, from the U.S.Department of State detailing policy guidanceon licensing the provision of telecommunicationsservice between the United State and Cuba.

The State Department letter rescinds its1993 policy guidance to the Commission andreplaces it with the guidance outlined below.State recommends that the Commission use thefollowing policy guidelines in reviewingproposals for telecommunications servicesbetween the United States and Cuba:

a) The Commission should apply itsInternational Settlements Policy (ISP) and theappropriate benchmark settlement rate withrespect to proposals for the provision oftelecommunications services to Cuba; however,in implementing this recommendation, the

Commission should be prepared, to the extentnecessary, to grant waivers reasonably limitedin duration to enable carriers within itsjurisdiction to provide telecommunicationsservice between the United States and Cuba.

b) The Commission should sendapplications for the provision oftelecommunication services between the UnitedStates and Cuba to the State Department forreview. If the State Department does not objectwithin 30 days of receipt, the Commissionshould assume that the State Department doesnot object to the grant of the application onforeign policy grounds.

The State Department letter notes thatnothing in the guidance should be interpretedas establishing a policy to authorize investmentin Cuba’s domestic infrastructure. In addition,applications approved by the Commission mayalso need to be licensed, as appropriate, by theOffice of Foreign Assets Control (OFAC) at theTreasury Department and/or the Bureau ofIndustry and Security (BIS) at the Departmentof Commerce.

The Commission will act uponapplications to provide facilities-basedtelecommunications services between theUnited States and Cuba consistent with theguidance set out in the 2010 State Departmentletter and Commission’s policies and rules.

In order to implement the new guidance,the Commission will retain Cuba on theExclusion List. The Exclusion List forinternational section 214 applications identifiescountries and facilities that are not covered bythe grant of global section 214 authority undersection 63.18(e)(1) of the Commission’s rules.Carriers desiring to serve countries or usefacilities included on the Exclusion List must filea separate application pursuant to section63.18(e)(3). Cuba will continue to be identifiedon the list as a country for which a separateapplication is required pursuant to section 63.18(e)(3). The Commission will processapplications for the provision of services to Cuba


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on a non-streamlined basis and coordinate withthe State Department prior to action as providedin the State Department letter. In addition, inorder to implement the guidance in the StateDepartment letter, the Commission will continueto apply to Cuba the International SettlementsPolicy (ISP), which currently applies to Cubaand certain other countries, and the 1997Benchmarks Policy, both subject to requests byU.S. carriers reasonably limited in duration forlimited waivers based upon the uniquecircumstances presented. The ISP governs howU.S. carriers negotiate with foreign carriers forthe exchange of international traffic in order toprevent foreign carriers with market power fromdiscriminating or using threats of discriminationor other anticompetitive actions, againstcompeting U.S. carriers as a strategy to obtainpricing concessions regarding the exchange ofinternational traffic. The Commission’s 1997Benchmarks Order established benchmarkrates U.S. carriers are permitted to pay foreigncarriers for terminating traffic. The goal of theBenchmarks Policy has been to reducesubstantially above-cost settlement rates paidby U.S. carriers to foreign carriers for terminationof international traffic.

For further information, contact JamesBall, David Krech, or Imani Ellis-Cheek, PolicyDivision, International Bureau, at 202-418-1460.

First Segment of EASSy Completed

The West Indian Ocean CableCompany (WIOCC) has announced that the firstsection of the EASSy system is laid in MaputoBay, Mozambique marking a major milestonein the system’s construction.

WIOCC will offer a range of servicesto African and international carriers, extendingthe reach of the EASSy network throughinterconnection agreements with operators ofother international submarine cable systemsgiving access to Asia, the Middle East, Europeand the Americas. WIOCC will also takeadvantage of its owners’ extensive national

networks to extend services from EASSy’scoastal landing stations to key cities in eachcountry, and for the first time open up access tomany land-locked countries in Africa’s interior.

The East African Submarine Cablesystem (EASSy) project consists of theconstruction of a 10,000 km fiber-opticsubmarine cable along the East African coast,linking Sudan to South Africa with other landingpoints in Djibouti, Somalia, Kenya, TanzaniaComoros, Madagascar and Mozambique. In arelated project, EASSy signatories are buildingof terrestrial fiber backhauls to link the land-locked countries of the region to the cable(Ethiopia, Uganda, Burundi, Rwanda, Malawi,Zambia, Zimbabwe, Botswana, Swaziland andLesotho).

POLICY

ACA: new broadband stimulus loan/grant

rules from NTIA and RUS further

disadvantage small cable providers

According to the American CableAssociation, new rules adopted by the NationalTelecommunications and InformationAdministration and the Rural Utilities Servicewould further advantage certain segments of thetelecommunications industry over small cableoperators interested in obtaining broadbandinfrastructure loans and grants available underthe American Recovery and Reinvestment Actof 2009 for last-mile broadband deployment.

“ACA is disappointed that NTIA and RUSstructurally modified the programs in a way thatmakes it harder for small cable providers toreceive last-mile funding,” said ACA presidentand CEO Matthew M. Polka. “The rules seemto favor every entity except small cableoperators, who are well-positioned to deliverstate-of-the-art broadband facilities in rural andremote communities at low costs. Notsurprisingly, we will be closely monitoring theimplementation of the programs to ensure thatsmall cable operators are not unfairly treated.”


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Small cable operators should not bedisadvantaged because regulations have beenwritten that side with competitors to many ACAmembers, Polka explained in a letter sentFebruary 2 to Assistant Commerce Secretaryand NTIA Administrator Lawrence E. Stricklingand RUS Administrator Jonathan S. Adelstein.

“The American taxpayer will bedisappointed to learn that the program waschanged to give greater priority to awardingparticular segments of the telecommunicationsindustry with broadband funding over equallyor better qualified applicants, including ACAmembers, that could provide the samebroadband service at a lower cost,” Polka said.

Under last year’s economic stimulus law,Congress provided NTIA and RUS with $7.2billion in funding for broadband infrastructureloans and grants issued to eligible entities. Allfunds need to be allocated by September 30,2010. According to ACA, NTIA and RUS madevarious adjustments to its second-round fundingrules that dismayingly tilt in favor of ruraltelephone and satellite companies to a degreethat more than likely gives them a decidedadvantage over smaller cable operators thatdecide to apply for last-mile grants and loans.

Polka noted that in the rules, RUS optedto increase from five to eight the number ofpoints out of 100 automatically awarded toapplicants that have borrowed funds under TitleII of the Rural Electric Act of 1936, which areoverwhelmingly traditional phone companies.Moreover, RUS plans to set aside $100 millionin grants specifically for satellite broadbandtargeted at rural unserved areas.

This decision to bolster incumbent RUSborrowers has taken on greater urgencybecause NTIA says that most of its $2.6 billionin broadband grants will go to middle-mileprojects, while the RUS’s $2.2 billion in grantsand loans will mostly go toward building last-mile infrastructure projects.

“If preference had to be given to pastborrowers, we thought 5 points was too much

last round. Now, we are perplexed that RUSwould make matters worse by increasing thatamount to 8 points. In our new era of opengovernment, we would have hoped for a clearexplanation of changes that so apparentlydisadvantage small cable,” Polka said.“Favoritism and disparate regulatory treatmentare not a formula for success.”

To their credit, NTIA and RUS didrespond to some of ACA’s concerns. Forexample, NTIA eliminated the strict prohibitionon the sale of funded facilities within 10 years;RUS eliminated the definition of “remote,”thereby broadening access to grants in lieu ofloans; and the NTIA eliminated the requirementthat certain applicants had to apply with RUSfirst before being eligible to obtain NTIA grants.

“But for the agencies’ decision that RUSwill be the primary source of last-mile fundingand the RUS’s increased preference forawarding certain segments of the industry, theserule changes would have encouraged moresmall cable providers to participate.

As it stands now, I’m afraid that we’ll seefewer small cable operators seeking to applyfor money to help the Obama Administrationachieve the goal of making broadband serviceboth universal and affordable to every Americanin the near future,” Polka said.

ACA is encouraged to learn that NTIAand RUS will soon send out approximately 1,400letters to applicants whose proposed projectswill not be receiving loans and grants under thefirst round of funding applied for last year. Theseletters will inform ACA members whether theyneed to consider applying in the second round.

Last year, more than 80 ACA membercompanies applied for broadband stimulusfunding for an array of last-mile and middle-mileprojects totaling more than $1.3 billion. Of the80, only one was granted.

The turnout by ACA members wouldhave been greater if certain funding restrictionshad not made it so difficult for small cablecompanies to apply.


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NEW PRODUCTS

JDSU introduces DMC to boost efficiency of

optical fiber network testing

JDSU is introducing the Dual ModuleCarrier (DMC) for the T-BERD/MTS-8000portable fiber-optic network test equipment,which enables technicians to determine andtroubleshoot network traffic problems from twodirections using one test solution, rather thanboth ends of a local circuit.

In the typical CO and Tier 2/3troubleshooting environment, two testers havetraditionally been necessary to determine thatthe network segment is properly passing traffic.Now, using one T-BERD/MTS-8000 DMC,technicians can find network traffic problemsfrom both directions with one set of testequipment. The T-BERD/MTS-8000 offersconcurrent capture/decode and TCPWireSpeed testing on two 10-Gigabit Ethernetports. A 10M to 10-Gigabit Ethernet, DS1/E1to OC-192/STM-64, OTN, PDH, Next-generation SONET/SDH, and Fibre Channeltest solution, the T-BERD/MTS-8000 DMC iscapable of simultaneous troubleshooting bothsides of a circuit — using one tester.

The DMC also offers the ability to runfour concurrent tests, so technicians can sharea test set for installation and troubleshootingin a central office, and offers service providerlabs sufficient port density for long-termequipment “soak” testing across severalinterfaces with the portability needed to takesoak testing to the field.

For more information, contact JDSUonline at www.jdsu.com.

MARKET INTELLIGENCE

Opportunities in Military Fiber Optics 2010

– a New IGI Certified Report

New Report Outlines CriticalDevelopments in Military Fiber Optics Now inits fourth edition, Opportunities in Military Fiber

Optics 2010 provides powerful insight into themost up-to-date military fiber optics trends.Become an expert in the latest militarydevelopments by utilizing the vital informationcontained in this report, including:

* Comprehensive profiles of 43 DoDfiber optic contractors, including the majorsyour company needs to do business with andtheir contact information.

* Exclusive interviews with DARPAProgram Managers Dr. Michael Haney and Dr.Adel Saleh about their ground-breaking workin next-generation fiber optics programs.

* Interviews with the successfulCiena Government Solutions Division team,which now does approximately $50 million inbusiness annually with the U.S. Department ofDefense and intelligence community.

* A complete transcript of thelandmark cyber security workshop at theFederal Communication Commission led byadmiral Jamie Barnett and attended by manyindustry experts.

* A detailed analysis of the 51 DoDSBIRs awarded to 27 vendors in the last year.

* A chronology of critical events forthe calendar year 2009 in military applicationsof fiber optics, including dates of awards,important solicitations, and agencydevelopments.

* A review of all DARPA programsfocused on fiber optics including dollar amountsby fiscal year.

With Opportunities in Military FiberOptics 2010, you can stay abreast of all of themilitary fiber optics trends, know whichprograms will make money for your company,and successfully leverage the valuableinformation contained in the report to generatenew revenue.

This is your opportunity to get theinsight the leading Pentagon funding agentsand defense contractors have for a fraction ofwhat the other market research companiescharge. Begin 2010 by maximizing your


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revenue potential by doing business with theU.S. government. You will be glad you tookadvantage of this opportunity! For moreinformation or to order the report, visitwww.igigroup.com or call: Dr. Hui Pan, +1-617-782-5033, email, [email protected].

Status of the multibillion-dollar MEMS

industry for 2009

Research and Markets announced theaddition of the “Status of the MEMS Industry2009” report to their offering.

In the face of a collapsing mainstreamsemiconductor sector over the past 18 months,the MEMS business held its own and remainedflat. While this is great news for MEMS overall,for the many MEMS companies that madeproduction infrastructure investments in 2006and 2007, flat business made 2008 and 2009really difficult. The MEMS industry remainshighly diverse, and as such, the impact of thefinancial collapse and economic recession hasbeen varied. While established applicationshave struggled, new ways to package andintegrate MEMS devices in systems buttressedthe industry. New MEMS devices are indeedgrowing very fast: two-axis gyros, MEMS IMUs,and MEMS oscillators, to name a few.

Several companies stopped their MEMSproduction entirely or in part (Delphi,Continental, Colibrys, Systron DonnerAutomotive), while others saw their businessesenter a huge growth phase (InvenSense, Kionix,STMicroelectronics, SiTime).

All in all, booming new business wasentirely offset by flagging established business,with the net result flat. Innovation in MEMS ischanging: few totally new devices are nowlaunched, and most new applications are linkedto new usage of existing devices (humanmachine interface, replacement of existingtechnologies). With packaging averaging morethan 40 percent of the cost of a MEMS device,strong efforts are being put into adapting thepackaging to drive out cost and enter new

applications (like mobile applications). Inparallel, MEMS foundries are coming out of theeconomic downturn in a strong position: moresystem manufacturers have made the decisionto stop internal MEMS manufacturing and arenow working with MEMS foundries.

MEMS foundries are extremely activewith these new customers. As can be expected,this growth is attracting new players like TSMC,UMC, and others. In addition, wafer-levelpackaging and 3D chip stacking using throughsilicon vias (TSV) are also growth drivers forthe MEMS foundries.

Driven by cost-reduction goals neededfor consumer applications, investments in 8-inchinfrastructure continued despite the downturn.

“Status of the MEMS industry 2009”provides an analysis of the evolution of MEMSapplications and markets:

- Updated data on MEMS markets;- Analysis of the industry from the

manufacturing and innovation pointsof view;

- Analysis of the strategies of the mainplayers;

- Evolution of the equipment marketsfor MEMS production;

- MEMS packaging trends.Market trendsThe MEMS markets are flat since 2007:

from $7.1 billion in 2007, to $6.8 billion in 2008,and an estimated $6.9 billion in 2009. But thatresult is the sum of a huge plus in consumerelectronics applications, which grew at 25percent CAGR, and a huge minus withestablished automotive business taking a bighit. A restart of the net growth is expected after2010, with a CAGR of 12 percent in the nextfour years.

The production equipment market isextremely low at $140 million (in 2008, 2009,and 2010) and will restart in 2011:

1. The production infrastructure in placeis sufficient to absorb the growth forthe next two years and we will have


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to wait until 2011 for a significantrestart of the MEMS productionequipment market;

2. The MEMS foundry growth in 2008and 2009 was limited at 6 percent(after years of 30 percent growthannually) and will restart in 2010 withmore than 25 percent CAGRexpected in the next 4 years.

Report highlights- Analysis of the business trends and

expected evolution of the 15 majorapplications areas of MEMS devices(pressure sensor, ink jet,accelerometer, gyroscopes, siliconmicrophone, microfluidic devices,thermography, micro displayspicoprojector, optical MEMS, RFMEMS);

- Long-term vision of MEMS markets2008-2020: evolution of the MEMSmarkets, current drivers of theindustry;

- Technology and business trends atequipment and materials level;

- Detailed analysis of the evolution ofthe MEMS foundry business and ofthe main players: What is thestrategy of each of the top 30 MEMSmanufacturers?

- Evolution of MEMS packaging: HowMEMS companies are learning fromchanges in the packaging fields(TSV, WLP, Si Interposers);

- Analysis of the latest 12 months’M&A in MEMS and venture capitalinvestments in MEMS.

Who should buy?- The executives of MEMS

companies, to look at the completeMEMS business and the majorevolution that could impact theindustry in the long term;

- The technology teams of MEMScompanies, looking to learn from the

development of the other parts of theMEMS industry;

- The end users, trying to understandthe evolution of the MEMS industryand find data on each applicationand who is doing what;

- The marketing and technology teamof equipment and materialsmanufacturers, looking to have acomplete picture of MEMS world andthe key metrics of the industry.

Benefits of the report- What are the market shares of

MEMS manufacturers perapplication?

- What is the evolution of the MEMSfoundry business?

- What are the trends and competitivelandscape in the MEMS productionequipment business?

- Detailed analysis of the major 15applications of the MEMS markets:* Pressure sensor* Accelerometer* Gyroscope* Inkjet head* Silicon microphone* Optical MEMS* Micro displays* Micro bolometers* Microfluidics for research* Microfluidics for diagnostic* Microfluidics for drug delivery* RF MEMS* Micro tips and probes* Micro fuel cells* Emerging applications.

- Strategic analysis of each applicationand analysis of the competitivelandscape

- Detailed equipment manufactureranalysis

- Detailed analysis of the evolution ofthe MEMS packaging

vol. 4 no. 1 january 2010

Documents