Optical virtual private networks: Applications, functionality and implementation

Today's economic environment presents special challenges for telecommunication carriers-finding new ways to drive down network costs i, without limiting future growth opportunities. Minimizing operating expenses and capital expenditures is not sufficient to ensure future prosperity. New, value-added services can help carriers increase their revenues and profits-today. Virtual private networks (VPNs), both data (IP & MPLS) and optical, fit the description of value-added services. VPN services have received ample attention over the last few years as they are viewed by carriers as an attractive value added service and by customers as a cost effective replacement of leased private lines. VPNs can also help carriers reduce their costs-both capital and operational-by supporting multiple customers, each allowed with varying levels of network control and management over the same (shared) infrastructure. Optical virtual private networks (O-VPNs) represent the next step in the evolution of VPNs and provide similar underlying benefits as other VPN technologies to carriers. Although both carriers and vendors have been talking about O-VPNs for years, the first commercially viable solutions started becoming available in early 2002 [1]. O-VPNs provide carriers with new revenue opportunities as well as the potential to reduce their operating and capital costs. Additionally, O-VPNs offer carrier-customers several benefits, including lower networking costs, increased network flexibility and control, and improved network operational efficiency.