Good points Jack. I think POET has some ballpark numbers based on making their decision to go into manufacturing which no doubt is part of the basis for 2 wafer suppliers.
What is interesting is that a Royalty Model was produced by IBK some time ago showing the value POET would have to Finisar. The increases to the market value of Finisar was very dramatic and one would have to believe that there was something very relevant in those numbers. The new POET management probably looked at it and said why aren't we doing it ourselves and we can keep all that money instead of just collecting a royalty?
The market for the optical transceiver is just so immense that likely they just need to produce a limited number of AOC's types for widespread deployment. Anadigics gets some money for building them but it is hard to imagine that POET could not make a significant premium and remain fabless. They would have some pretty amazing flexibility in pricing to the point where they could kill the competition very quickly in that area.
It is a good point for discussion.
