It's got a 40-gigabit optical receiver in the works. A gigabit equals 1,000 megabits. One megabit per second is far faster than a typical home modem connection. Typically only a few businesses currently use more than 155 megabits in their transmitters. The gamble is worth it in telecommunications, says Jeff Anderson, a managing director at Mellon Ventures who backed Kestrel.
Analysts disagree on the meaning of the shifting, growing spending on Internet infrastructure.
To some, it's a natural maturing of a still-evolving Internet industry. Economic fundamentals like supply and demand hold true. The economy is the same one it used to be,'' says Steve Domenik, managing partner of Sevin Rosen Funds in Palo Alto.