Light Reading
More notes on the Ciena-ing of Tellabs

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
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
Educational Resources
sponsor supplied content
Educational Resources Archive
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
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Huawei Video Resource Center
Interview With Rick Talbot, Principal Analyst, Current Analysis

10|31|14   |   2:12   |   (0) comments


At the NFV Open Cloud Forum 2014, Rick Talbot shared his positive feedback about the holistic and open approach that Huawei adopts for SDN and NFV. He also found the open sharing at the event valuable as it features different perspectives from Huawei experts, telecom operators, industry analysts as well as security experts.
LRTV Huawei Video Resource Center
Interview With David Snow, Principal Analyst, Current Analysis

10|31|14   |   2:24   |   (0) comments


David Snow talked about his understanding of Huawei and its SoftCOM strategy at the NFV Open Cloud Forum 2014, saying that Huawei's wide approach combining IT and CT expertise, introducing big data and analytics into solutions and contributing to the OpenStack community particularly resonate with him and make the company stand out in the industry.
LRTV Huawei Video Resource Center
Interview With Roz Roseboro, Senior Analyst, Heavy Reading

10|31|14   |   3:13   |   (0) comments


Roz Roseboro commented on Huawei's data center capabilities and NFV solutions at the NFV Open Cloud Forum 2014, saying that in addition to covering all three key domains of compute, storage and networking, the company also emphasizes the importance of management capabilities and professional services, which are essential in making NFV a reality.
LRTV Huawei Video Resource Center
Interview With Michael Howard, Co-founder & Principal Analyst, Infonetics Research

10|31|14   |   5:25   |   (0) comments


Michael Howard talked about SDN, NFV, and OpenStack adoption at Huawei's NFV Open Cloud Forum 2014. Particularly, he pointed out that Virtual Enterprise CPE is the top NFV use case that operators plan to invest in over 2014 and 2015 to deliver new enterprise services through virtualized functions.
LRTV Huawei Video Resource Center
Interview With Jerry Caron, Senior Vice President, Current Analysis

10|31|14   |   3:11   |   (0) comments


At Huawei's NFV Open Cloud Forum 2014, Jerry Caron from Current Analysis said that orchestration and management are key to realizing SDN and NFV for global carriers, and the approach that Huawei is taking, with its FusionSphere Cloud OS at the core, is in the right direction to address the challenges.
LRTV Documentaries
Broadband Battles

10|31|14   |   01:39   |   (0) comments


This year's Broadband World Forum featured a number of show floor battles focused on access gear, components and coffee.
Jonestown
Mobile Backhaul: Going to the Dark Side?

10|30|14   |   2:26   |   (1) comment


Heavy Reading's Patrick Donegan shares his view on a dark trend that bubbled up at Light Reading's annual backhaul conference in NYC.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With CEO of SwitchCom

10|30|14   |   4:13   |   (0) comments


SwitchCom, an IT company based in Angola, recommends a variety of Huawei solutions and hardware to their customers in the energy industry.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Ethiopia's Ministry of Water Irrigation & Energy

10|30|14   |   4:08   |   (0) comments


Gosaye Mengistie of Ethiopia's Ministry of Water Irrigation & Energy discusses the collaboration with Huawei in that country.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Dongfang Electronics Corporation

10|30|14   |   5:46   |   (0) comments


Dongfang Electronics Corporation, headquartered in Chengdu, China, is one of China's largest manufacturers of power generators and contractors of power station projects.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Zimbabwe's Customers

10|30|14   |   3:31   |   (0) comments


Representatives of Zimbabwe's Ministry of Power and Development discuss the energy needs of their country as well as new areas of improvement due to enhanced ICT capabilities.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Colbún Chile

10|30|14   |   4:29   |   (0) comments


In Chile, an aging energy infrastructure was in dire need of a modern update. Claudio Valenzuela of Colbún discusses how Huawei's ICT solutions continue to provide crucial information to improve the grid and how an in-country engineer is a cricial asset.
Upcoming Live Events
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Microsoft's Skype Embraces WebRTC on IE
Sarah Reedy, Senior Editor, 10/27/2014
FTC Slaps AT&T With Throttling Lawsuit
Sarah Reedy, Senior Editor, 10/28/2014
Wheeler Gets Down With OTT
Mari Silbey, Independent Technology Editor, 10/29/2014
China's MVNOs Hit the Wall
Robert Clark, 10/27/2014
Let's Not Kill SDN & NFV With Silos
Francois Locoh-Donou, Senior VP, Global Products Group, Ciena, 10/28/2014
Like Us on Facebook
Twitter Feed