Turin Bulks Up With Backhaul Buy
"They are complementary on the technology side and on the customer side," says Ovum Ltd. analyst Dana Cooperson. On the technology side, she says, "Carrier Access sits at the customer edge of the network, while Turin focuses more on the core and metro edge of the network."
The combination of complementary technologies will help broaden Turin's overall product portfolio, allowing it to offer more of an end-to-end solution set. That will come in handy, Cooperson says, as more service providers look to one-stop-shop vendors for their equipment.
"We would expect more alignments of this type," Cooperson says. "Service providers want more of an end-to-end solution, and nowhere is that more true than on the wireless side."
One financial analyst, who asked not to be named, says competitive pressure from larger equipment vendors is making life very tough for the smaller, specialist players. "Carrier Access identified the market for wireless backhaul early on, but it was a small market. As bigger players came in and changed the competitive landscape, it made a deal inevitable," he says.
Michael Howard, principal analyst at Infonetics Research Inc. , says the customer base is also very complementary. "Carrier Access has about 100 customers, a lot of which are Tier 1 operators, and Turin has a lot of Tier 2 and Tier 3 service providers."
Merging the two companies could help Turin sell up into Tier 1 accounts where it doesn't already have a presence, particularly in service providers that have both wireline and wireless assets.
Turin is also hoping to leverage the companies' complementary sales and marketing stories. Turin has a significant direct sales force, while Carrier Access sells primarily through channel partners. While Turin is looking to expand its sales channel, it also thinks it can leverage its existing sales force to sell Carrier Access gear.
Turin Networks CEO Henry Wasick says, "We like the business model from a sales and marketing standpoint. The real benefit here for a combined entity is that we have many more sales and marketing people on the street than they have."
— Ryan Lawler, Reporter, Light Reading