Recently Passave, the GEPON chip maker, announced that they would delay their IPO date. More information came out today. One of their key customers UTStarcom sued Passave in the "quiet period" because an equipment rollout for Softbank Broadband had technical glitches associated with Passave chips. Here’s the news article and here’s the analysis. After reading the analysis, the main questions for me are whether NTT’s GEPON equipment has the same Passave chips as UTStarcom, and if so why did they perform well for NTT and not for Passave. If the chips were not the same, who "dropped the ball" an allowed a faulty product to ship to market. In any case, this problem does not seem "minor" as described in the initial delay news.