Optical transceivers are the most important first and last 10cm in any network. Without them, a network will not work. However, transceiver prices have remained high over many years, mainly because major Network Equipment Manufacturers (NEMs) are setting inflated prices and adopting practices that attempt to ‘lock in’ network builders into using their solutions.
However, there are now manufacturers supplying compatible optical transceivers, which offer the same level of performance of NEM transceivers, but at the fraction of the price. This makes the compatible optical transceiver a viable option for service providers and Altnets looking for greater interoperability and cost-effectiveness in their networks.
Diversifying choices
By using third-party optics, businesses can utilise a number of different vendors and component types, leading to a more competitive, collaborative market. These cost-efficient, versatile network solutions are already proving pivotal against the rising demand for connectivity and effective data transmission.
Breaking from NEMs means businesses can select third-party transceivers that are compatible with the switches within their networks. These can offer greater maximum reach and suitable data rates for their specific operations, with adherence to the latest technical specifications, including DOM Tx and Rx values, to ensure optimal signals consistently fall within the correct tolerances when in use. It’s for these reasons that service providers and Altnets are increasingly turning to third-party suppliers like ProLabs for their optical transceivers.
It’s fair to say that NEMs have not taken kindly to this competition however, with many engaging in anti-competitive behaviour as a result. To ensure customers remain loyal to their transceivers, NEMs often advise that integrating third-party components will lead to technical issues or a voided warranty.
Establishing ‘fair play’
Of course, this is not the case. Using third-party optical transceivers within a network will not directly void any service contract or warranty with an NEM, and there is legislation in place which proves this.
For example, the ‘Treaty of functioning of the European Union (TfEU)’ protects businesses and their customers within Europe, with any explicit or implicit ‘warranty tie’ by a NEM considered invalid under Articles 101 and 102. A similar legal framework for the United Kingdom, the ‘Competition Act of 1998’, specifically prohibits any anti-competitive agreements between companies, including NEMs.
Across the pond, there are federal laws in place to ensure any businesses operating within the United States are not forced to commit to the exclusive use of a singular company’s products or updates. At the same time, a warranty cannot be invalidated if a business look to obtain another one. The Magnuson-Moss Warranty Act of 1975 (15 United States Code section 2302(c)) also ensures a “tie-in sales provision” – forbidding NEMs from voiding a warranty offering if a customer uses a third-party transceiver for their operations.
One small step for NEMs....
These pieces of legislation are encouraging greater competition and choice for the benefit of the consumer, ensuring those in a more dominant standing can’t abuse this position and establish vendor lock-in. Businesses are also protected through warranties offered by the third-party suppliers themselves. Subject to the same legal requirements as those offered by NEMs, many of these warranties provide greater longevity to customers, including lifetime coverage.
As the interoperability of networks becomes increasingly crucial for service providers and Altnets alike, we are beginning to see a change of attitude towards third-party optics from NEMs however. When a major NEM launched a new series of switches last year, they advertised the solutions were ‘third-party transceiver enabled’ and that they supported ‘a wide range of small form-factor pluggable (SFP) modules’.
Baby steps for sure, but this acknowledgement of third-party optics by such an established NEM will hopefully inspire further movement towards greater flexibility and choice for businesses. Should others follow suit, then proprietary solutions will be rejected in favour of components that better align with a company’s budget and requirements.
....one giant leap for the market
The effect this will have on the market cannot be understated. To be clear, this doesn’t mean businesses as a whole will move away from NEM components: there will always remain room for them in the market. However, what users want is greater choice. If NEM and third-party components are interoperable, then it becomes a market of compatibility, not competition.
Selecting a good third-party supplier also ensures businesses don’t just receive a solution, but a service. They benefit from in-house programming and testing, often in state-of-the-art laboratory facilities. Once NEMs launch their latest products, these suppliers will be able to carry out analysis on these switches and other components to ensure its products remain compatible and offer the highest levels of performance. These facilities are a key selling point to Altnets, who may lack the space and resources to test every component within their networks. Buying components which have undergone this process frees up vital resources for these businesses, while giving them peace of mind that they are suitable for their operations.
Further support is also provided through environment testing. Following the initial customer order, suppliers like ProLabs will request specific data to establish the most suitable switch-to-switch connection. By carrying out testing using the customer’s exact set up, third-party suppliers can confirm that the optical components will work as they need to once they are implemented within the network infrastructure. It also assures businesses that any modules shipped to them have been fully tested and validated and can simply be plugged in as needed.
The key to optimal network performance
By 2026 to 2027, the top ten Altnets within the United Kingdom are expected to have built full fibre networks covering approximately 30 million premises. Using third-party components within these networks is a builder’s best bet to overcome the rising pressure for reliable connectivity and to best serve the nation.
This makes it even more important for businesses to ignore the fearmongering carried out by the major NEMs, especially where threats about warranties are concerned. If misconceptions like these can be dispelled, then companies will no longer be able to be directly or indirectly influenced by these conglomerates, giving them the freedom to make their own decisions when it comes to components.
