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Ethernity Networks Lands $4.6 Million Follow-On Contract for Fiber-to-the-Room Devices

Ethernity Networks, a leading supplier of networking processing semiconductor technology ported on FPGA (field programmable gate array) for virtualized networking appliances, announced that it has signed a new $4.6 million follow-on contract with its existing customer, a Chinese broadband network OEM.

Under the contract, Ethernity will supply system-on-chip (SoC) devices with support for Gigabit Passive Optical Networking (GPON) Optical Line Termination (OLT), adapted to enable Fiber-to-the-Room (FTTR) deployments. The Ethernity solution offers GPON OLT over an extremely low-cost FPGA to serve residential and small-office Customer Premises Equipment for FTTR deployments.

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Fiber-to-the-Room is a disruptive trend that uses passive optical fiber to reach residential, retail, and enterprise deployments. Passive fiber-optic deployments provide greater reliability and performance than Wi-Fi and a greener and more power-efficient solution than traditional copper cabling. By bringing fiber into the individual rooms of an apartment or small office, end-users can benefit from higher throughput with an unmatched level of service to enable today’s most data-hungry applications without experiencing lags.

This is the second major contract with this customer, following an original $3M GPON/XGS-PON OLT SoC order in October 2021. Given the success of that initial project, the customer proposed a follow-on project to address the larger FTTR market, targeting residential deployments and expanding Ethernity’s reach into a new mass-volume market.

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This is the largest single FPGA volume-based contract that Ethernity has entered into to-date. With the device being a major enabler within a next-generation home gateway and considering the significant estimated volumes indicated by the customer beyond the committed volume per the contract, this may justify porting the design integrated on the FPGA to an Application Specific Integrated Circuit (ASIC) to allow long-term competitive pricing.

David Levi, CEO, Ethernity Networks said: “This deal confirms our prior expectations that Ethernity’s contract wins would lead to follow-on business. We are extremely pleased with the advances we have made on a deployable PON product with this OEM customer, and we are excited to begin work on this extended offering for the new FTTR market. This is a totally untapped market for Ethernity that utilizes our existing 5G infrastructure technology to serve a major connected residential market. I believe this is the tip of the iceberg in this growing market for Ethernity with further potential to generate significant additional revenue flows.”

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[To share your insights with us, please write to sghosh@martechseries.com]

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