Tellabs, Ericsson Sign 3G Wireless Pact
May 9 4:47am ET
LISLE, Ill. (Reuters) - Telecom equipment maker Tellabs said it signed a multi-year agreement with Swedish firm Ericsson to provide carriers with power that is needed to converge mobile telephony with the Internet, and create a third generation, or 3G, network.
This network will be able to support high-speed mobile access to corporate networks, the Internet and multimedia data communications using a 3G handset, the company said.
Under the terms of the deal, Ericsson will market and sell Tellabs' FOCUS SDH systems.
The FOCUS systems will be integrated into Ericsson's mobile network as an extension to the cellular transport system that uses Tellabs' MartisDXX managed access solutions. This extension will provide the bandwidth that is needed for a 3G network and will help carriers monitor, control and manage communications traffic.
Shares of Tellabs closed Tuesday at $38.09, off a 52-week high of $76.94, up from a year low of $31.23.
Mike:
Be ready to see many more pacts as this between ERICY and Tellabs in the future:
I posted this in the CSCO Thread:
My scenario for the next years: CSCO will sell telecom gear via big vendors (LU, SI, ALA, NEC or NT).
Then they will sell LAN gear to the enterprise directly.
The invasion of each others turf -CSCO going to telecoms and big telecom vendors going to data networks- will be gone in a year. Those big telecom vendors will stop such purchases done to match CSCO bluff: ERICY/Juniper. LU/Ascend, NT/Baynetworks and ALA/Newbridge. CSCO, in its turn, will stop trying to be everything to everybody. Call it the end of convergence.
Investors should take this 3.000 to 150 drop with a grain of salt.
Elmat |
