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By Jonathan Tombes, Senior Editor

A combination of integrated circuits (ICs), Gigabit trunking and distributed switching promises cable operators an unprecedented rate of return in the business market arena.

"What we are doing is providing a switched broadband, Ethernet interconnect network on top of an existing cable operation," Dev Gupta, Narad Networks CEO, says.

The goal is to make bandwidth above 860 MHz on existing coaxial cable available to the small- and medium-sized enterprise (SME) market. How does it work?

Narad uses Silicon Germanium ICs to modulate digital signals onto coax, enabling a high-speed transmission link for Internet protocol (IP) traffic. Its trunking architecture provides 1 Gbps between nodes and amplifiers, while 100 Mbps is delivered on drops from taps to the customer premises.

Gupta says Narad implements distributed switching at each node by very large scale integration (VLSI), using 0.189 micron complementary metal oxide semiconductor (CMOS) technology. A fair-queuing algorithm allows for a consistent rate of service, regardless of distance from nodes. The switching scheme also enables quality of service (QoS) and bandwidth control.

The technology sounds complex, but Gupta says it takes little by way of upgrade to transform the operator's business.

Eight commercial customers, for instance, would generate the same earnings before interest, taxes, depreciation and amortization (EBITDA), as do 320 residential subscribers, Gupta says. Serving those eight would require only four of Narad's switching taps, effecting only 3 percent to 4 percent of a typical node's 115 or so taps.

"A very light touch on your network, and you can double your margins," Gupta says.

Narad boasts Ethernet pioneer Dr. Bob Metcalfe and Data Over Cable Service Interface Specification (DOCSIS) godfather Rouzbeh Yassini on its board, but it is not the only company gunning for the SME market.

Harmonic has also proposed a switched Ethernet over hybrid fiber/coax (HFC) network for the same purpose. And fellow start-up Jedai Networks also is offering to help cable operators tackle this market, though its technology has yet to be unveiled.

Concerns raised

Can cable operators really go after T1 and T3 business lines?

Narad picked a winner in Ethernet technology, whose flexibility, and end-to-end possibilities are compelling, Ron Westfall of research firm Current Analysis says. Other new carriers, such as Yipes and Cogent, are also are exploiting Gigabit Ethernet (GigE) technology, as is Cisco Systems, through its long-reach Ethernet, he says.

Westfall raises concerns, however. First, he says it remains to be seen whether operators are able to deliver voice over Internet protocol (VoIP). "The PacketCable portion of DOCSIS is still plodding along."

Second, deployment scenarios vary. "A tall shiny building with high-grade wiring...is made to order for cable operators," Westfall says. Some older properties are getting upgrades, but many remain less than ideal.

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