Summary
1. Hitachi tried to get significant business in the US fiber to the premises telco market. 2. The RBOCs have not been too receptive to it and the independents in general appear to be looking more at other competitors. 3. The MSO space now provides the most upside potential for the vendor.
Analysis
It only makes sense to combine Hitachi Telcom with Salira for efficiency purposes. With both entities appearing to be making the MSO space their primary target, there is no need to have two sales forces.
It was a tall order for Hitachi Telecom to break into the RBOCs. But as a strong international player in PON gear, it was almost required that it try. Hitachi also had the size that it could potentially go in alone – without a partner. However, lack of incumbency on the public network side did not help.
Evidently, both Salira and Hitachi Telecom have already made inroads into the cable TV market. The tendency not to have centralized purchasing at the MSOs may provide additional opportunities to the new Hitachi Communication Technologies America.
