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Vendor strategies: Tellabs fights back against larger full-service rivals
Market Study
Published: July 2010
Pages: 18
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 934.38 Buy Now!
Research from: Ovum Research and Consultancy
Sector: Mobile Markets
Tellabs is a vendor in transition. The company has been moving in a new direction since naming a new CEO in early 2008. As part of its new strategy, Tellabs realigned its product lines and marketing organization to focus on specific market applications for optical networking, mobile backhaul, business services, and professional services where its products best fit. This is in direct contrast with network infrastructure vendors that have pursued a growth strategy based on full-service breadth. Recent results have validated Tellabs’ approach: it was one of the few vendors to actually increase its operating profits in 2009. Ovum is encouraged by the company’s next-gen products and its prospects for growth in the mobile market beyond backhaul. Its optical networking, IP/Ethernet, and broadband access product lines provide good solutions that the company sells to tier-1 and tier-2 markets in North America, EMEA, Asia-Pacific, and SCA. It counts 43 of the top 50 global operators as customers.