Optical Transport Networks, Optical Containers, And Granular Layer 1 ODUflex Protocol

Optical wavelengths are composed of fundamental building blocks known as containers. The industry has recognized that current wavelength transmission rates are too chunky. There are limited number of sizes with many customers struggling to justify the leap from 100G to the relatively new 400G standard. On the supplier side the limited size of wavelengths can lead to stranded spectrum. For example, you might have enough spectrum for 5G or 150G or 650G. In all these cases the stranded capacity represents lost revenue in a cut throat, ferociously competitive wholesale market. 

The ODUflex standard was introduced in part to create wavelengths below the 2.5G level. The fundamental ODU building block is a 1.25Gbps transmission rate. ODU means optical data unit. But let's assume you divide each second into time slots for 80 ODU units per second. Well, that is a 100G transmission rate. Want a 150G wavelength? Interweave 120 ODUs. So now Layer 1 granularity becomes a reality. One customer advantage is fewer cross connects. As wavelength prices have declined, cross connect prices have risen or stayed flat and hence those costs have become an increasing portion of the network operating budget. Indeed, Equinix dominance in many data centre markets means that six cross connects can easily cost $36K a year. Indeed, it is possible the two cross connects combined exceed the long haul cost! The other cost saving is buying only what is needed. For example, peak traffic may be 200G, which requires buying a 400G bandwidth pipe. ODUflex benefits the supplier because less bandwidth is stranded in the network. But most of the benefit is coaxing clients into high bandwidth brackets. 

In the diagram below you see a client with a 6 Gbps peak traffic application riding a 10G wave. ODUflex meets the same requirement, but saves 40% of the capacity for other uses. It is a win-win.