Part 2
Part 2- article
by: stephenmaisel
12/23/1999 11:01 am EST
Msg: 11271 of 11274
Acquiring Salix will helps Tellabs get to market more quickly. "Salix's equipment allows us to play in the voice-over-IP
market immediately instead of wasting time on internal developments," says Sabalaskey.
At the same time, against Cisco Systems, Lucent Technologies or Nortel Networks (nyse: NT), Tellabs' advantage is that
the company is not tied to a legacy-installed base product line. Tellabs is freer to become more aggressive as it moves into
newer markets. "Unlike the other major vendors, we can act as a neutral new player," says Doug Rippe, director of global
business development at Tellabs.
Tellabs execs also say that, although the company may be on the quiet side as far as marketing goes, it is no less poised to
take advantage of the growth of the Internet.
"They may be less in the limelight, but I don't think that's to the detriment of their business model," says Dan Simpkins,
founder and chief executive officer of Salix.
According to analysts, Tellabs is best suited to transitioning traditional telecommunications carriers into being able to offer
data and other multimedia services on a single infrastructure. "Much of their business is based on long-standing relationships,"
Simpkins says.
The company already owns an industry-leading cable access platform, called Cablespan. But Tellabs is interested in
participating in new markets, and could pursue developments or acquisitions of digital subscriber line (DSL) and broadband
wireless technology. |
