re: AT&T Vendors Sing Merger Blues Adtran is not a fast follower. Adtran is a company of niches. Analysts make this mistake all the time.
Adtran makes ADSL DSLAMs. When has anybody picked Adtran over Alcatel? Only in the remote DSL business. Only in those places where Adtran has designed its product to be greatly suited to be a dominant product.
Analysts. Please ask Adtran the following question. What percentage of the business that Adtran wins is CO DSLAM? How about asking how many RFPs does Adtran win where it is displacing Alcatel as an incumbent? The answer to those questions is 0. Adtran works to cover the complimentary applications that is the 20% of the 80/20 rule.
re: AT&T Vendors Sing Merger Blues Actually, ONE of the businesses that Adtran is in is HDSL. It has some enterprise business, some remote DSL business, and some other odd assorted little bits and pieces.
re: AT&T Vendors Sing Merger Blues Traditionally, (over 5 years ago) it would have been Enterprise CPE (DDS and T-1 DSUs). In the recent past, it would have been HDSL. Now, I am not clear if ADSL or HDSL is a bigger chunk.
re: AT&T Vendors Sing Merger BluesThanks Seven. Is it possible that AT&T is slowing down DSL purchases not because of the merger but becuase it is anticipating a more aggressive move toward fiber? If that's true Adtran will report more bad news next quarter. One analyst said that idea is BS, and that Adtran's gear is still squarely addressing AT&T's needs.
re: AT&T Vendors Sing Merger Blues Adtran has two DSL businesses with AT&T.
They have an HDSL business which is being impacted somewhat by a Fiber to the Cell Site initiative. However, cell site bandwidth growth probably outweighs that initiative.
They have an ADSL business that is probably somewhat impacted, but it is not clear what their deployment is in what will be Litespeed properties. You should probably ask them what their approvals are like. One thing that is true is that greenfield in AT&T is no longer copper. This means that the total market opportunity is capped. The question is how Adtran can address the merger needs to roll out rural broadband or other existing DSL vendors (and Adtran is #3 ADSL inside of AT&T) will fill that role.
Adtran is not a fast follower. Adtran is a company of niches. Analysts make this mistake all the time.
Adtran makes ADSL DSLAMs. When has anybody picked Adtran over Alcatel? Only in the remote DSL business. Only in those places where Adtran has designed its product to be greatly suited to be a dominant product.
Analysts. Please ask Adtran the following question. What percentage of the business that Adtran wins is CO DSLAM? How about asking how many RFPs does Adtran win where it is displacing Alcatel as an incumbent? The answer to those questions is 0. Adtran works to cover the complimentary applications that is the 20% of the 80/20 rule.
seven