Instead, the market is occupied by smaller names like Fiberxon Inc. -- which was acquired by MRV and is being merged with its LuminentOIC Inc. subsidiary -- or NeoPhotonics Corp. (See MRV Buys Fiberxon, Preps IPO, MRV Sags on Fiberxon Buy, and NeoPhotonics Unveils GPON Transceivers.)

    Better known for datacom optics, Finisar is trying to increase its telecom sales -- which is another reason to be interested in GPON. Finisar's other telecom moves lately have included the acquisitions of Azna and Kodeos in the spring. (See Optium, Finisar Bulk Up.)

    That datacom heritage might help Finisar in the GPON market, because it means Finisar already makes Fibre Channel and Gigabit Ethernet transceivers. That expertise -- along with the high volumes those devices command -- could serve Finisar well in GPON.

    "What Finisar brings to it is that they already have the infrastructure for building high-speed optical devices," says John Harmon, an analyst with Needham & Co. Harmon notes that Finisar really builds the stuff, in its own factory in Malaysia, whereas other big names tend to have transceivers built by a contractor like Fabrinet Co. Ltd. -- which might not want to work at such low margins.