I am certainly not an expert in this - but I do have something to say about it. I hope others do, too. You raise a topic I'm very interested in.
Regarding their size in comparison to their competitor's, I think in some ways the smaller size of Tellabs has given them some advantages in flexibility, total focus on their core markets {I mean this in the sense that they are not so diversified as Lucent, and some others in their industry and have to manage so much on their plate at once}, and ability to manage fast growth effectively. It may be an especially strong advantage until another two or three years.
[Any Lucent supporters on this thread, please don't take this as being down on Lucent. I think Lucent is a dynamite investment (!!) and they are certainly managing their growth very well. I am only trying to point out that there might have been some disadvantages for Tellabs if they were - in earlier times and maybe even now - as into other markets as Lucent is.]
This is a gut feeling, but I think the world-wide communication needs will fuel their growth many, many years down the road. And Lucent's, and PAIR's, and FORE's, etc., etc.
I think one advantage TLAB has had over the last few years is that they have been able to focus on being the best in whatever they do rather than spread too thin over many parts of the telecommunications industry. Their quality has not always at a level they want to be, but they've done a very good job at make sure they keep it. Note their echo cancellers and Titan.
As far as international goes, they have been working on setting up the Latin American area, Asian area, and the European area for future sales growth. They have recently entered the Mid-East area as well. Personally, I would like to see their manufacturing facilities expansions completed and operational. If they telecommunications industry as a whole start spending large quantities of $$s on upgrading/expansion equipment, TLAB and others will need the capacity.
Overall, I think the telecommunications industry is on the edge of a major explosive growth cycle. It may take until 2002 or 2003 to really get into this cycle, but it will almost HAVE to happen.
Regards.
walker
|
