Moto Finishes FTTN Fare
The sale is otherwise unremarkable except that it appears to put a final nail in the coffin of Next Level Communications, the startup upon whose technology Moto based the MSAP.
Motorola first got a controlling interest in Next Level Communications via its January 2000 purchase of set-top maker General Instrument Corp.
What followed was a turbulent relationship between an independent access company and a controlling parent. The two companies famously sparred for a while, much to the delight of journalists and the chagrin of shareholders who had bet on the FTTN market waaaay too early. (See Motorola Extends Next Level Offer, Moto's Next Level Offer to Expire, and Motorola Buys Rest of Next Level.)
In 2003, Motorola acquired the 26 percent of Next Level it didn't already own for about $34 million, and, just three years later, Moto shuttered the Next Level facility and consolidated its FTTx resources at the Massachusetts-based site of QuantumBridge Communications, another acquired fiber-access property. (See Moto Shuts Next Level Facility.)
Under Motorola, Next Level lost $385 million, according to BusinessWeek's 2003 profile of the faltering fiber concern.
But the business did have some real customers, and there is a real need to maintain those installed networks. That's where CTDI comes in. That firm has built an arsenal of discarded telecom access products by acquiring product lines from Zhone Technologies Inc. (Nasdaq: ZHNE), Conklin Corp. , Verso Technologies Inc. (Nasdaq: VRSO), and others: CTDI is to access equipment what Genband Inc. is to media gateways.
Motorola’s FTTN product line has been around since the late 1990s. Qwest Communications International Inc. (NYSE: Q), one of the Moto's marquee MSAP customers, discontinued a TV-over-DSL service powered by Moto's gear last year after the set-top box maker it used said its products would no longer support the aged MSAP product line. (See Qwest Tuning Out ChoiceTV.)
— Phil Harvey, Editor-in-Chief, Light Reading