NTT Corporation has been increasing its campaign to sell the Innovative Optical and Wireless Network (IOWN). They’re hoping for more—it will completely transform the next-generation information and communications infrastructure. The company’s first-of-its-kind initiative has already picked up strong momentum. Today, it counts more than 160 members, including big names in the tech industry such as Google and Microsoft. The company is particularly keen on developing silicon photonics and optical packaging. They aim to transform the way information is transmitted inside data centers.
At the last NTT Tech Day, NTT demonstrated for the first time in the world a high-speed factory production on the optical and wireless network. A data center 300 km away was able to remotely operate this complex network. This accomplishment is a testament to the ways in which photonic technologies improve operational efficiency. NTT and Toshiba are now working together to develop new forms of photonic-electric conversion at the level of internet servers. This breakthrough, more than a decade in the making, is an essential milestone in fulfilling IOWN’s ambitious vision.
A New Era of Connectivity
The IOWN initiative is all about creating that kind of detailed roadmap. This roadmap describes various stages of development for improving data center infrastructure, from state to national levels. The second phase of IOWN is planned to be operational by 2026. Most importantly, it will bring new cutting-edge hardware that allows for optical communication between circuit boards. Under their long-term vision, inter-chip connections are anticipated to be deployed by 2028 and intra-chip connections by 2032.
C. Sean Lawrence, an expert in the field, emphasized the shift in approach required to enhance data transmission. His main point was that we are really talking about moving from electrical wiring to optical connections. This shift will play out within data centers, across circuit boards in servers, across silicon packages on circuit boards, and eventually even across the silicon die in a package. We believe we can transform the world of high-performance data transmission and computing by making this transition.”
NTT’s dedication to IOWN is demonstrated through its strategic partnerships and continuous research and development activities. The company’s work on package-to-package connections promises to extend this efficiency and capability beyond a data center’s walls.
Industry Implications and Future Prospects
As NTT continues to develop its NTT photonics initiative, industry professionals underscore the importance of these developments. Takasumi Tanabe, a professor of electronics and electrical engineering at Tokyo’s Keio University, remarked on the importance of IOWN’s contributions to research and development. He noted that challenges persist, even to the device level. Photonic devices are poised to be key enablers in the next generation of systems that realize ultra-low power consumption, increased bandwidth and reduced latency.
“Some things are a little bit tougher,” Tanabe said. He admitted that a truly ‘all-optical’ system isn’t really possible with the current state of device physics. He was insistent that electronics will continue to be key to the future and electronics control, modulation and signal processing.
Rubenstein added context to the urgency surrounding these developments, stating, “With the advent of AI, computing has returned to the center of everything. If the AI boom slows, then the urgency will disappear. If AI continues as it has done, in five years it will be much closer to that vision.”
The Competitive Landscape
There’s no question that NTT is betting big on IOWN. That makes this high-profile initiative especially timely, as telecommunications companies continue to struggle with leveraging new technologies including cloud computing and AI. As Roy Rubenstein reminded us, telcos have a track record of ignoring the big picture and squandering consequential chances. Nonetheless, he noted, their edge network connectivity remains a key asset. “This is their last chance to claim some territory,” he stated.
As NTT plays an important role in leading the charge towards an advanced, photonics-driven future for data centers, industry stakeholders will be watching closely. By starting this initiative, DOT has the opportunity to change the paradigm of efficiency and performance for data transmission. It could even transform the whole field of information technology.

