& cplSiteName &

TLAB Shakeup Coming

Phil Harvey
The Philter
Phil Harvey
4/24/2008
50%
50%

12:15 PM -- Argus Research Co. analyst Jim Kelleher had a great observation in his research note yesterday:

In coming months, we expect CEO Pullen - after a complete assessment of operations - to announce a substantial downsizing at Tellabs, as he seeks to shift the company into a network specialist role akin to the role developed by Ciena.


This fits nicely with what I wrote just after Tellabs announced it wouldn't be supplying GPON gear to Verizon.

Tellabs won't sell itself. And who'd buy it anyway?

  • The 5500 is coal-powered.
  • The 8800 is being lapped by its competitors.
  • The two biggest broadband access accounts delivered via the AFC acquisition -- BellSouth and Verizon -- are now toast.
CEO Rob Pullen could really make a name for himself here. The company has no debt. It has more than $1 billion in cash and investments. If it does some downsizing and embraces the role of network specialist, it might look a lot different this time next year.

Again, look at Adtran and Ciena. Those companies are pretty easy to size up. They're not good at everything; they're good enough at enough things.

Should Tellabs:

  • Put more resources behind its optical transport and ROADMs?
  • Buy Aktino, Hatteras, or something like it?
  • See if it can get $5.25 a share from Nokia-Siemens?
What would you do?

— Phil Harvey, Editor, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
berty
50%
50%
berty,
User Rank: Light Beer
12/5/2012 | 3:42:32 PM
re: TLAB Shakeup Coming
Phil, the fundamental problem with TLABs is their chance of remaking themselve has now gone. They had a chance after acquiring AFC and some others to set themselves on a path of a remake, but that has clearly failed. Their primary bread and butter business cross connects is in decline and unless they find some thing new and revolutionary for the network they will experience a slow and painful death. They will be the 3com of telecoms, plenty of money in the bank but no new ideas.They could be acquired but who would buy something that has declining revenue. They could buy some new technology but this will cost a lot of cash and most likely not be new and revolutionary.Their time has gone.The new management with their visibily mature board can only pull costs out of the company to delay the decline.Berty
USA
50%
50%
USA,
User Rank: Light Beer
12/5/2012 | 3:42:21 PM
re: TLAB Shakeup Coming
One problem is that they have a significantly overpaid group of employees that cannot be sustained by their anemic product portfolio. Maintenance fees on the Titan DACS ainGÇÖt gonna cut it.
ponguy
50%
50%
ponguy,
User Rank: Light Beer
12/5/2012 | 3:42:20 PM
re: TLAB Shakeup Coming
This is a very tough question for them. Their execution on the outside people brought in has been so poor so who is going to come up with the new ideas-and implement them? AFC aquisition (CEO and 8 of 9 VP's gone within 3 months), Asghar Mostafa (Vinci founder/CEO) leaving, Vivace Sr. team leaving, and now Krish/Carl's departures has left them with the same people who have been there a long time and not succeeded on anything new. So they respond by turing to an insider who in his 23 year career has never seen the outside world from another view but Tellabs. Can they even think differently enough to have success if they were to find the right niche?...Good Luck
More Blogs from The Philter
There's an interesting tension between how much SDN can benefit service providers and how it could threaten their established businesses
Stanford's Nick McKeown says SDN won't take hold until networking equipment vendors give up some control
OneAPI may provide developers a reason to build apps and content for networks, not just mobile operating systems
Ericsson CEO Hans Vestberg defends his company's managed services deals and says he'd rather invest in R&D than make expensive acquisitions
Use our message boards to share photos from your Barcelona experience this week
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
Software Trends in the Telecom Sector

2|23|17   |   03:40   |   (0) comments


Heavy Reading senior analyst James Crawshaw talks with Telecoms.com Editorial Director Scott Bicheno about trends and developments in the telecoms software sector and what to expect at MWC 2017.
LRTV Custom TV
Huawei's Pre-MWC Analyst Briefing 2017 Highlights

2|22|17   |     |   (0) comments


Huawei shares its vision for this year's MWC.
LRTV Interviews
MWC17: 5G, Cloud RAN & More

2|21|17   |   04:35   |   (0) comments


Ovum Senior Analyst Julian Bright talks to Scott Bicheno from Telecoms.com about all things MWC, including Cloud RAN, Huawei's pitch to the industry and the road to 5G.
LRTV Interviews
MWC 2017's Key 2-Letter Terms

2|20|17   |   08:29   |   (1) comment


5G, AI, VR... these are just some of the two-letter terms that will dominate show-floor chat at MWC 2017 in Barcelona, according to these two blow-hards (a.k.a. Scott Bicheno of Telecoms.com and Light Reading's Ray Le Maistre). And then there's PB...
LRTV Interviews
Key Trends for Mobile Operators in Developing Markets

2|20|17   |   06:37   |   (0) comments


Ovum's Matthew Reed talks to Scott Bicheno from Telecoms.com about the challenges and opportunities facing mobile operators in the developing markets of Africa and the Middle East.
LRTV Documentaries
YouTube Takes on Facebook Live-Streaming

2|17|17   |     |   (0) comments


Popular 'YouTubers' will be the first to get the new service on their smartphones. You have been warned.
LRTV Custom TV
Open Source NFV/SDN Automation

2|17|17   |   05:54   |   (0) comments


AT&T ECOMP (Enhanced Control, Orchestration, Management and Policy) code is transitioning into the Linux Foundation for placement into open source. In this video, Carol Wilson provides an update on the maturation of open source ECOMP and meets with industry leaders from AT&T, Bell Canada, Orange, Linux Foundation and Amdocs to discuss what this means for the ...
LRTV Documentaries
Uber & NASA Collaborate on Flying Car Project

2|16|17   |     |   (0) comments


Is Uber for real? Well, it's hired NASA engineer Mark Moore to lead the project, and he wouldn't come cheap.
LRTV Documentaries
Zuckerberg Tries Out the Oculus Rift VR Glove

2|15|17   |     |   (0) comments


Facebook CEO shows off a new way to interact with the Oculus Rift virtual reality headset: an Oculus glove.
LRTV Custom TV
Huawei Digital Transformation Forum 2017

2|10|17   |     |   (0) comments


Here's a preview of the upcoming Huawei Digital Transformation Forum taking place in Barcelona with trending telecom topics like cloud, IoT, 5G and much more!
Telecom Innovators Video Showcase
Dan Sahar of Qwilt on Open Edge Cloud Platform

2|8|17   |   08:38   |   (0) comments


Dan Sahar, Qwilt's co-founder, sits down with Steve Saunders of Light Reading for a conversation about Qwilt's Open Edge Cloud platform and the new role of service providers in application and content delivery.
LRTV Documentaries
ZeroStack's 'Self-Driving Cloud'

2|7|17   |   01:09   |   (0) comments


Its Z-Brain tech automates day-to-day management and long-term planning for hybrid clouds.
Upcoming Live Events
March 21-22, 2017, The Curtis Hotel, Denver, CO
March 22, 2017, The Curtis Hotel, Denver, CO
March 22, 2017, The Curtis Hotel, Denver, CO
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Broadband Has a Problem on the Pole
Mari Silbey, Senior Editor, Cable/Video, 2/21/2017
Is the Time Right for a Cisco/Ericsson Wedding?
Ray Le Maistre, Editor-in-chief, 2/17/2017
Verizon to Start Fixed 5G Customer Trials in April
Dan Jones, Mobile Editor, 2/22/2017
Uber's HR Nightmare: Company Investigates Sexual Harassment Claims
Sarah Thomas, Director, Women in Comms, 2/21/2017
Nice to See at Least One CSP Taking My Advice
Mitch Wagner, Editor, Enterprise Cloud, 2/17/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Animals with Phones
No One Likes This Click Here
Take a hint!
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.