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XFP Prices Plummet: Page 3 of 4

Vendors shipping or planning to ship XFP modules include:

The biggest price shrinks are hitting the highest volume XFP versions: the 1310nm, 10km module; and the 850nm, short-reach version. Laudon has seen price quotes indicating that towards the end of 2004, the 1310nm, 10km model could reach $500 or $600 in price, compared with more than $800 for a comparable Xenpak module.

XFP does require an extra $100 serializer/deserializer (SerDes) chip, which splits the 10-Gbit/s stream into four lanes of 3.125 Gbit/s, a more manageable speed for linecard electronics. But prices of that chip are declining as well.

Looking at the metro market, the 40km XFP module probably won't come as cheaply. "I don't think there'll be as much price erosion, because the volumes will be significantly lower," Laudon says.

The sharp decline in XFP module prices might have taken some people by suprise, but it was forecast by Heavy Reading, Light Reading's paid research division, in a recent report entitled "10-Gbit/s Ethernet Components: A Heavy Reading Competitive Analysis." The 63-page report delivers a complete analysis of transponder modules and PHY devices from 44 components vendors, covering nearly 200 different products. All the main 10GE transponder form factors are covered, including 300-pin, Xenpak, XPAK, X2, and XFP. For more information, click here.

Craig Matsumoto, Senior Editor, Light Reading