How do I handle a supplier that delivered a faulty product?

Tue Nov 25 16:21:28 UTC 2014

Hello,

We are a small FTTH provider and our main business is selling 1000/1000
internet. Our network is GPON based.

We recently made the mistake of buying a large shipment of Zhone 2301
modems (ONU). We did test this device before purchase, but unfortunately we
failed to notice a severe fault with the product. Soon after putting it
into production we got many complaints from customers that the modem would
crash daily.

Turns out that the device can not handle download streams at or near 1000
Mbps. Especially if the download originates with a server that is 10G
connected.

GPON downstream is actually 2.4 Gbps. The modem has to deliver on an
ordinary 1 Gbps ethernet port. This means the packets can arrive faster
than the modem can hand it off on the ethernet side. And when that happens,
it will simply crash.

The vendor then told us to limit download speed to 750 Mbps with a small
buffer of 50 KB. Any faster and the modem can crash amongst other issues.

When I told them I do not think I can sell 1000/1000 Mbps internet if I
limit the modems to 750 Mbps, as that would be false advertising, I was
simply told that the 2301 is a low cost solution, so deal with it. They are
not going to work more on fixing the issue.

The website and the datasheet does not say anything that would warn you
that this product can only handle 750 Mbps:
http://www.zhone.com/products/ZNID-GPON-2301/ZNID-GPON-2301.pdf

So what do I do now? I am thinking Zhone needs to resolve this in a
satisfactory way, which is to either return my money or switch the product
to something, that actually delivers what was promised. We have some of
their 24xx series and that works perfectly well. So we know it is just the
2301 that is bad. Unfortunately we are apparently to small a customer to
them.

As this is an USA supplier, will suing them help me any? Yes I know, don't
ask for legal advice on a mailing list, and I am not - I just want to know
some opinions if that is even worth considering. Or if I will just have to
eat it and drive the whole shipment into the harbor.

Regards,

Baldur