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To: Mike E. who wrote (42646)1/26/2007 11:52:50 AM
From: FJB  Read Replies (1) | Respond to of 42804
 
The down part is ATT is going with fiber to the node for now which excludes TLAB.

Still, questions linger over what the merger means for BellSouth's equipment suppliers. One sticking point has been AT&T's commitment to continue to deploy its fiber-to-the-node (FTTN) technology as opposed to the fiber-to-the-home (FTTH) that Tellabs Inc. (Nasdaq: TLAB - message board; Frankfurt: BTLA), for example, has helped roll out in the BellSouth region. (See Ma Bell Merger Thumps Tellabs and Wall Street Frets About BellSouth Suppliers.)

Tellabs CEO Krish A. Prabhu stated earlier this week that his company planned to continue to work with AT&T to upgrade the carrier's fiber lines. But that relationship could be weakened based on Whitacre's comments in today's earnings call. "We are committed to IPTV and the FTTN network," he said. "Our FTTN architecture is performing better than we anticipated it would. This is our Plan A, and we are sticking with it."

Tellabs officials couldn't immediately be reached for comment.

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