Corrigent Systems, a provider of Packet ADM (Add Drop Multiplexer) for next-generation transport networks, and a subsidiary of Orckit Communications (Nasdaq:ORCT) has announced that its CM-100 Packet ADM has been selected as the key element in Japanese telecommunications operator KDDI's packet-optimized transport network build. KDDI has over 21 million mobile telephone service subscribers, and some nine million fixed-line subscribers.
Nationwide deployment in Japan is expected to begin this year. Net One Systems, Japan's largest network solution provider, will provide sales, system integration and support services for KDDI. The value of the deal was not disclosed, but the contract is estimated to be worth $40-60 million.
"We are extremely impressed with Corrigent's CM-100 Packet ADM. We have been evaluating it extensively both in our lab and in the field, and finally determined that it outperforms all other solutions and best meets our requirements," said Hiroshi Takeda, General Manager, Network Engineering for KDDI.
"We are honored with KDDI's selection of Corrigent, allowing us to play a significant role in a leading carrier's move towards a data and packet based infrastructure and away from legacy transport architectures," said Ehud Rokach, CEO of Corrigent Systems.
KDDI will use the CM-100 in its metro networks which are used to provide several key services, including KDDI's Hikari-Plus service. Hikari-Plus provides video, voice, and data services that enable residential customers to benefit from DVD-quality video-on-demand, broadcast TV, Voice-over-IP telephony, and high-speed internet access. Corrigent's CM-100 will be used to deliver these bandwidth-intense services throughout Japan.
The CM-100 is a high capacity transport solution that enables carriers to mix video, data and voice applications on the same infrastructure by utilizing Resilient Packet Ring (RPR) and Multi-Protocol Label Switching (MPLS) technologies.
Orckit owns 70%, fully diluted, of Corrigent. The remaining 30% is represented by employee options. In its 20-F filing the company said its holding might be further diluted by fund raising to finance Corrigent's activity. Orckit reported a $5.9 million loss for the second quarter. It is traded at a market cap of some $100 million, and has about $50 million cash.
Published by Globes [online] - www.globes.co.il - on July 15, 2004