How broadband hunger fuels test
An exclusive interview with a technical leader
By Larry Maloney, Contributing Editor -- Test & Measurement World, 10/1/2007
|
Q: How far has the communications industry rebounded from its early-decade slump?
A: It’s been a gradual recovery, but lately it has accelerated. JDSU has benefited from the build-out of new broadband networks and adoption of bandwidth-intensive services, such as VoIP and IPTV. Growth in on-demand content, such as YouTube and iTunes, also drives new network challenges and increases the need for test solutions.
With these trends, JDSU is in a unique situation, since our test portfolio addresses the entire network and service deployment life cycle. This ranges from development and production in the network-equipment manufacturer arena to deployment in the field and then ongoing service assurance and network monitoring. We provide test products to the cable industry and the telecom industry, and the competition between those sectors to lock in customers with a compelling package of services has helped drive double-digit growth in our communications test business.
Helmut Berg provides additional comments on his company’s products, services, and customer outreach programs in the continuation of this interview.
Q: What portion of JDSU’s total business can be attributed to test and measurement?
A: Test and measurement is the largest segment and is tracking at about $600 million in annualized revenue. In the most recently reported quarter (ending March), the T&M business grew by 28%. We also see strong performance in other JDSU units. For example, JDSU is the leader in the ROADM [reconfigurable optical add-drop multiplexer] market and enjoyed record shipments in the quarter ending March 31. Our Advanced Optical Technology group and our laser businesses also are growing at double-digit rates.
Q: How has the test and measurement business evolved at JDSU?
A: Our heritage was field-service test, which includes test instruments carried by technicians, and that remains our largest segment. From that core, we have expanded to other areas, such as the network equipment manufacturer market, where we provide high-end instruments for system design, verification, and production. JDSU has also established the leading market position in 40G network test. Finally, we offer test systems that combine software and instrumentation into service-assurance solutions, as well as wireless service-assurance systems and software.
Q: What impact have recent acquisitions had on the company?
A: The acquisition of Acterna two years ago made JDSU the world’s largest provider of test solutions to telecom and cable network operators. We followed that with three more important acquisitions: The acquisition of Test-Um expands our portfolio in home wiring and home testing. The Casabyte acquisition allows us to provide service-assurance solutions for the wireless market, and the acquisition in May of Innocor adds more broadband test solutions for network equipment manufacturers.
Q: What is the potential for home-networking test?
A: The intense competition between telecom, cable, and satellite service companies means that test service providers must take greater responsibility for the wiring inside homes and enterprises. There’s great opportunity in this market.
Q: Which of your markets is now growing the fastest?
A: It’s clearly broadband network deployment and services, which again points to the importance of the Innocor acquisition. We believe our enhanced capabilities put us in an even better position to help equipment manufacturers keep pace with next-generation technologies.
Read the continuation of this interview.
