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Optical/IP

Alcatel, Redback Score at BellSouth

As expected, Alcatel (NYSE: ALA; Paris: CGEP.PA) has landed another major RBOC access network upgrade deal.

The French giant and Redback Networks Inc. (Nasdaq: RBAK) have been named as the first two vendors to win access network upgrade deals from BellSouth Corp. (NYSE: BLS). (See BellSouth Picks Alcatel, Redback.)

Alcatel had been expected to be a lead contractor (see BellSouth Picks IPTV Finalists). The BellSouth deal adds to its key role in SBC Communications Inc.'s (NYSE: SBC) Lightspeed project, making Alcatel the undisputed king of next-generation access networks on Lucent Technologies Inc.'s (NYSE: LU) home turf (see SBC Sheds Light on 'Lightspeed' and Mais Alors! Alcatel Bags $1.7B SBC Deal ).

No commercial terms were announced.

In pre-market trading this morning, Redback's share price rose 24 cents, more than 3 percent, to $7.52, while Alcatel's stock was up 15 euro cents, 1.5 percent, to €10.07 ($12.84) on the Paris exchange.

The contract awards are part of the RBOC's network transformation, or IPTV, project, that will see BellSouth upgrade its access network so it can provide integrated voice, data, and video -- i.e., triple-play services (see BellSouth: Access Will Rise Again and Analyst: Copper Is BellSouth's Gold).

Alcatel will supply its 7330 IP DSLAM and 7302 Intelligent Services Access Manager devices that can deliver access speeds of up to 24 Mbit/s (see Vendors Claim DSLAM Breakthrough and Alcatel Cancels New Litespan DLC).

"This extends our relationship with Alcatel, which has served both companies well as we've brought DSL services to more than 75 percent of our customers," said BellSouth CTO Bill Smith in a prepared statement.

Redback will supply its SmartEdge Service Gateway, the firm's latest broadband remote access server (B-RAS). "As we deploy our next-generation infrastructure and execute our enhanced broadband services strategy, Redback Networks will provide the platform for broadband services, IP edge routing, and potentially state-of-the-art video," said BellSouth's CTO.

The news is as expected, says Heavy Reading analyst at large Graham Beniston. He says Alcatel was the clear favorite to win the DSLAM part of the deal, while Redback was well placed as an existing supplier.

"Redback is the incumbent B-RAS supplier, and this follows the pattern in terms of the incumbents winning new business. Its installed products already play a key role as part of the provisioning and service management systems. That's one way to get into a long supply lifecycle -- become an integral part of the service management system," says Beniston, author of a recent Light Reading report on the subject (see DSL Service Management).

— Ray Le Maistre, International News Editor, Light Reading

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databoy12 12/5/2012 | 3:27:30 AM
re: Alcatel, Redback Score at BellSouth Nortel was the incumbant, not Redback. Does LR ever get anything right!
digits 12/5/2012 | 3:27:29 AM
re: Alcatel, Redback Score at BellSouth BellSouth is using the Redback SMS B-RAS products -- both the 10000 and 1800 -- at present.

Ray Le Maistre, Light Reading
Access_Mania 12/5/2012 | 3:27:29 AM
re: Alcatel, Redback Score at BellSouth who else was competing for this bid? I would imagine this would be a big loss for Tellabs (formerly AFC.

The article stated that Alcatel and Redback are the first two to be awarded. Is there still business to be won?
light-headed 12/5/2012 | 3:27:29 AM
re: Alcatel, Redback Score at BellSouth AFAIK, The Nortel Shasta was the original BRAS with most deployment. The Redback gear is newer and less volume... so you are both sort of correct.
alcaseltzer 12/5/2012 | 3:27:28 AM
re: Alcatel, Redback Score at BellSouth Who's won the video head-end portion?

TUT systems has been talking about securing an order for a trial system from "a Tier 1" carrier...
paolo.franzoi 12/5/2012 | 3:27:27 AM
re: Alcatel, Redback Score at BellSouth
Yes, the FTTC business is still to be awarded which was the incumbent business of AFC/Tellabs. Alcatel was the incumbent DSLAM player.

seven
databoy12 12/5/2012 | 3:27:27 AM
re: Alcatel, Redback Score at BellSouth Blackstar,

BSouth's original BRAS was Cisco's 6400. Also, there is no longer a DotNet. DotNet merged with the regulated side and they are now one big happy family;) BellSouth migrated to an enhanced PTA architecture with Shasta performing the BRAS role approx. one year ago.
blackstar 12/5/2012 | 3:27:27 AM
re: Alcatel, Redback Score at BellSouth IIRC Bellsouth is cut into two halves (telco and ISP) and one half has shasta and the other one redback.
I could be mistaken, but I think that before shasta, the regulated side of Bellsouth used cisco. Can anyone confirm/deny?
databoy12 12/5/2012 | 3:27:27 AM
re: Alcatel, Redback Score at BellSouth The SMS1800's were part of the old DotNet Network acting as LNS's. Shasta was the product used on the regulated side as tunnel switches and LAC's. BellSouth switched from L2TP to PTA and decommissioned most of the SMS1800's leaving mostly Shasta's as their only BRAS. SMS1000's were in a small portion of the regulated network. Think they still are, but most of the BRAS's deployed at BellSouth are Nortel's and they are considered by BellSouth to be the imcumbant.
mrdid13 12/5/2012 | 3:27:26 AM
re: Alcatel, Redback Score at BellSouth Forgot to give the URL if anyone is interested. Its www.phoenix-lite.com .....See you at the Minnesota Telecom Alliance conference people.
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