Enron Communications Builds Nation's First All-IP Backbone Network

Strategic Insights -

Enron Communications, a wholly owned subsidiary of Enron Corp., is constructing the nation's first all-Internet Protocol (IP) backbone network, leveraging advanced technology from Cisco Systems and Ciena Corporation. The Pure IP(SM) network aims to reduce capital costs and operating expenditures by bypassing unnecessary network layers, enabling service providers to offer new applications such as video to the desktop and collaborative services. Enron's network architecture is designed to scale rapidly and economically, addressing the growing demand for IP bandwidth.

Key Takeaways:

  • Enron Communications is building the nation's first all-IP backbone network, leveraging Cisco Systems' high-speed 12000 Gigabit Switch Routers (GSR) and Ciena's MultiWave Sentry 4000 Dense Wave Division Multiplexing (DWDM).
  • The Pure IP(SM) network is designed to significantly reduce capital costs and operating expenditures compared to traditional communication systems.
  • Enron's network architecture will enable service providers to offer new applications, such as video to the desktop and collaborative services, by running IP directly over DWDM channels.
  • The network will focus on wholesale bandwidth needs of telecommunications service providers.
  • Enron Communications has formed strategic alliances with Cisco Systems and Ciena Corporation, leading providers of telecommunications technology.
  • The Enron Communications Pure IP(SM) network will utilize Cisco Systems' high-speed 12000 Gigabit Switch Routers (GSR) and Ciena's MultiWave Sentry 4000 Dense Wave Division Multiplexing (DWDM).
  • Graeme Fraser, vice president of Cisco's Optical Internetworking Business Unit, stated that the significance of Internet Protocol networks, such as the one now being built by Enron Communications, cannot be overstated.
  • Steve Chaddick, CIENA's senior vice president of strategy and corporate development, noted that Enron's network architecture represents the best new approach to building multi-service networks commercially available today.

Statistics:

  • Enron Communications' Pure IP(SM) network will utilize Cisco Systems' high-speed 12000 Gigabit Switch Routers (GSR) and Ciena's MultiWave Sentry 4000 Dense Wave Division Multiplexing (DWDM).
  • The network will be built on strategic routes throughout the United States, creating a data-centric national fiber optic backbone.
  • Enron Communications will focus on wholesale bandwidth needs of the telecommunications service providers.
  • The company owns approximately $28 billion in assets.

Sources:

  • PR Newswire, "Enron Communications Building Nation's First All-Internet Protocol (IP) Backbone" (Nov. 3, not provided in source)
  • Enron Communications, Inc.
  • Enron Corp.
  • Cisco Systems (Nasdaq: CSCO)
  • Ciena Corporation (Nasdaq: CIEN)