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World Markets Analysis
January 04, 2005
Tellabs, the bandwidth management and optical transport vendor, has announced the acquisition of Vinci Systems, the developer of optical networking terminals (ONTs) for Fiber-to-the-Home (FTTH) access systems. Tellabs will pay up to US$52.5 million in cash and restricted Tellabs stock.
Significance: The acquisition of Vinci Systems follows Tellab’s merger with AFC, which gave Tellabs a new suite of DSL-based and FTTx-based products. The acquisition of Vinci Systems will further enable Tellabs to provide transport to access solutions to carriers investing in next-generation broadband, such as SBC and Verizon in the U.S.
The growth in competition in the FTTx vendor market is likely to lead to more consolidation in 2005 (see Global: 31 March 2004: Motorola Buys Fiber-to-the-Premises Specialist Quantum Bridge Communications).