Summary
1. We recently suggested a scenario in which a Tellabs/Adtran merger could lead to the sale of the TA 5000. 2. Calix says that it can see no justification in adding the product to its portfolio. 3. Calix also argues that the TA 5000 is being leveraged for some very obscure applications.
Analysis
Calix cannot fathom the reason why it would want the TA 5000. The vendor contends that it offers comparable technology now. However, the elegant design and the attractive cost points of the TA 5000 for the RBOC space are clear. AT&T and Verizon are planning to use this device in a big way. With a purchase, they would be compelled to deal directly with Calix, a vendor that ordinarily would not be considered big enough for consideration.
We have stated before that Calix has been wise to avoid the RBOC market so far. And the manufacturer asserts that growth in other market segments would outweigh any opportunities in that particular ILEC space with the TA-5000.
Given Calix’s firm position, it is obviously unlikely that it would be looking for such a deal with Adtran. But plans do not always remain static. In the past, the Calix leadership seemed to be convinced that it could penetrate the RBOC market in spite of major obstacles in the way.
