Very good Oz. Another indication that POET has picked the right Chinese company.

It is really interesting that POET is building both PSM4 and CWDM4 transceivers and can build these optical engines at 2 to 3 times lower cost. Typically using existing models PSM4 offers the lowest cost solution when installed for 500 meter reach. It uses more fiber (more lanes) than CWDM4 so in the traditional model at longer distances the cost of fiber outweighs the advantage of the lower cost PSM4 transceiver. CWDM4 uses 1/4 the fiber (4 lanes on one fiber) but more transceiver components thus higher cost. In both cases the POET solution offers lower cost transceivers so a new model to calculate the best solution will be required by industry. The added investment in the fiber for PSM4 becomes recovered in the future as a cost savings. But I think the highest gain will be associated with conversion from 40G to 100G in existing data center upgrades utilizing the cheapest transceiver solution of POETs PSM4 where the fiber is already installed. But again new builds will require new modeling to determine cost benefits between POETs PSM4 and CWDM4 as they become available.

Pretty exciting to think that POET could be redefining the model.