To all-
News Released Today
by: ChicagoTRS (M/Chicago, IL)
4260 of 4261
TELLABS TO SUPPLY CABLESPAN SOLUTION IN HOLLAND
AND FRANCE
Priority Telecom Selects Tellabs to Deliver Telephony-Over-Cable Service
Lisle, Ill. - Tellabs announced today it has signed a three-year contract,
estimated to be worth more than $150 million, with Priority Telecom to
deploy telephony-over-cable services in the Netherlands and France.
Priority Telecom, the newly launched CLEC (competitive local exchange
carrier) and integrated telephony services division of United Pan-Europe
Communications (UPC), selected Tellabs' CABLESPAN solution as its
broadband access platform to allow it to deliver integrated voice and
high-speed data services over a hybrid fiber-coax (HFC) network.
The CABLESPAN system will be deployed over UPC's HFC networks in
Paris, France, and Arnhem and Eidhoven, Netherlands. Priority Telecom
will provide telephony services via cable systems infrastructure owned and
operated by UPC through Mediareseaux in France and United Telekabel
Holdings in the Netherlands. This agreement builds upon the joint success
of UPC and Tellabs in the Netherlands with UPC's cable television and
telephony operations, where more than 20,000 cable telephony lines have
been installed in and around Amsterdam. Also, Priority Telecom, as
announced in September, is presently delivering telephony services in
Norway using the CABLESPAN system.
"With the new deployment in the Netherlands and France, this will bring the
total number of UPC homes in Europe passed by our CABLESPAN
distribution system to more than 2.2 million," said Brian J. Jackman,
president of Global Systems and Technology at Tellabs. "UPC is already
successfully deploying the CABLESPAN solution on networks in Oslo and
Amsterdam, and we are delighted that it has chosen to extend its agreement
with us to include these additional networks."
"Our prior experience with the CABLESPAN system in Amsterdam has
shown us that we can provide added value to our customers, displace the
incumbent operator and take a large percentage of the residential and
business markets," said Joe Webster, chief executive officer of Priority
Telecom. "UPC's ability to bundle different telephony, high-speed Internet
access and video services sets us apart from the traditional PTTs. We plan
to repeat this success across our other properties in Europe."
Including UPC, Tellabs currently has delivered more than 30,000 lines of
cable telephony to its customers around the world. With the introduction of
the EXPRESS/pathÔ feature, the CABLESPAN system provides direct
high-speed Internet and Intranet data connectivity along with other business
applications. Tellabs, a pioneer in this industry, has become one of the
leading providers of cable telecommunications solutions to operators in
Europe and around the world.
With headquarters in Amsterdam, United Pan-Europe Communications
N.V. (UPC) is the largest privately-owned and one of the most innovative
broadband communications companies in Europe, providing cable
television, telephony, Internet and programming services. It has
well-established multi-service telecommunications systems in 11 countries in
Europe and Israel, serving approximately 4.6 million homes (including
announced transactions), 3.3 million subscribers, 82,000 telephony access
lines, 18,000 indirect access telephony customers and 23,500 broadband
Internet connections. UPC is strategically located in the capital cities of its
core European markets with operations in Amsterdam, Vienna (two of the
world's largest communications clusters), Brussels, Oslo and the suburbs of
Paris, as well as in capital cities in Eastern Europe and Israel. UPC delivers
voice, video and data services, which allow it to offer stand alone and
bundled service solutions to suit its individual customers.
That's $150,000,000 over 3 years at 39% net margin in an area that represents as new growth area for Tellab's,this Oak tree is about 15 foot tall with a top end growth potential of 80 feet.
ASnother way of looking at this that's 50 million per year of largely new business,at 40% net profit,that's 20 million profit. That's10 cents per share net,times 34PE that's +$3.40 to share price next year or + 5.7%.
GO TELLAB'S!!
DAVE DICKERSON |
