Tellabs CEO: Midsized Is Rightsized

Telecom consolidation is the order of the day, but Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA) continues to maintain that its size is the right size for now. In a new LRTV interview, CEO Krish Prabhu said his company intends to stay mid-sized, even though there have been rumors afoot that Tellabs is for sale (see Krish Prabhu, CEO, Tellabs ).

Prabhu says his company wishes to leverage the credibility of a large supplier while maintaining the tight product and market focus of a small company.

“We are very focused in what we do, both in terms of markets as well as technologies, and our plan clearly is as long as we bring the value proposition that’s superior to anyone else in the supply chain, we will have a role to play and we can thrive,” Prabhu says.

He notes that Tellabs has roughly 4,000 employees, is well capitalized, and has no debt (see Tellabs Ups Q2 Revenues).

Prabhu's vantage point on the industry is an interesting one. He left the telecom supplier business after the bubble burst and spent a few years working as a venture capitalist. But he was drawn back by a telecom industry in the throes of a transformation toward convergence. “The main reason why I came back to work at Tellabs is I felt that there was a game going on and I was on the sidelines."

Finally, Prabhu explains what an echo boomer really is and why that group matters to Tellabs. Obviously, not all of our editors are hip to the concept.

— Mark Sullivan, Reporter, Light Reading

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