Cost-effective monolithic and hybrid integration for metro and long-haul applications

Today's telecommunication market is characterized by conservative business practices: tight management of costs, low risk investing and incremental upgrades, rather than the more freewheeling approach taken a few years ago. Optimizing optical components for the current and near term market involves substantial integration, but within particular bounds. The emphasis on evolution, in particular, has led to increased standardization of functions and so created extensive opportunities for integrated product offerings. The same standardization that enables commercially successful integrated functions also changes the competitive environment, and changes the emphasis for component development; shifting the innovation priority from raw performance to delivering the most effective integrated products. This paper will discuss, with specific examples from our transmitter, receiver and passives product families, our understanding of the issues based on extensive experience in delivering high end integrated products to the market, and the direction it drives optical components.