Tellabs Secures BellSouth Biz
Tellabs' Wednesday announcement did have a couple of interesting tidbits. First, the contract is exclusive. Second, it lasts through 2006.
At the very least, this means that Ciena Corp. (Nasdaq: CIEN) and the other vendors that were competing for the BellSouth business are going home empty-handed for now (see Analysts See Tellabs Win at BellSouth).
BellSouth passes approximately 1.1 million homes with FTTC and has approximately 5.3 million miles of fiber within its network, Tellabs says.
BellSouth has already announced that it will use Alcatel's (NYSE: ALA; Paris: CGEP:PA) 7330 IP DSLAM and 7302 Intelligent Services Access Manager devices for some parts of its access network (see Alcatel, Redback Score at BellSouth).
At least three analysts -- Smith Barney's Alex Henderson, Morgan Keegan & Company Inc.'s Simon Leopold, and J.P. Morgan Chase & Co.'s Ehud Gelblum -- called the vendor pick ahead of the official announcement, with Gelblum doing so as early as March 14. "We expect these contracts to preserve Tellabs’ nearly $200M/year in run-rate sales from BellSouth…" Gelblum wrote in March.
— Phil Harvey, News Editor, Light Reading