Service providers of all sizes and shapes are wondering if passive optical networks (PON) have finally come of age, and if they are ready for deployment in their networks. Regional Bell operating companies are actively investigating PON for “greenfield” and overlay networks, as are independents and overbuilders. Even municipalities are launching PON initiatives as an “economic infrastructure” designed to improve broadband deployment in their regions. And overseas, the push for PON is even stronger, particularly in Asian markets.

But PON is still a new technology, and despite some valiant marketing efforts, the industry as a whole is still awash in acronym soup – is Ethernet PON (EPON) the best solution? Or is Gigabit PON (GPON)? And what about ATM PON (APON) and Broadband Access PON (BPON)?

This PON shootout reminds us of the early days of DSL, when vendors lined up behind CAP or DMT, and fought it out to the very end. There’s also a whiff of the old ATM vs. Ethernet battles we fought back in the '90s. Vendors are falling into various camps and making technical arguments about the superiority of their preferred protocols.

What’s really important, however, is how well these different PON camps’ products fit the service provider vision for PON services. We’ve spent some time talking with RBOCs about what they want out of a PON solution. Here are a few of the key things they have to say:

First of all, service providers buy off on the concept of PON. Particularly for their residential and small business customers, the fact that PON shares some of the most expensive parts of the outside plant – the fiber itself and the opex-intensive splices – makes it much more attractive than point-to-point fiber solutions.

Optics are a huge chunk of the overall cost structure – particularly at the level of individual subscriber ONUs. The big telcos want all PON vendors – regardless of which Layer 2 method they choose – to converge on a single Layer 1 optics solution. The only way prices are going to come down to a reasonable (to the telco) level is for a common optical standard to bring volumes up.

Speaking of prices, ONU prices for residential customers need to be in the sub-$500 range, and those for business customers not much more than double that amount. There are, however, huge variations in the capabilities of different equipment, so some gear can potentially cost more but do more, as well.