The Tellabs Image Needs to Reflect Getting Back to “Nuts and Bolts” Matters

Implications: 1.    After business started going downhill, Tellabs strived to manufacture news as much as possible.   2.     Its latest press release is perhaps the worst example to date because it does not connect at all with the new direction of the company. 3.     Tellabs would be better off refraining from issuing announcements that lack any real substance.

Analysis:  Better late than never, Tellabs finally placed in the CEO position an individual who understands and appreciates the fundamentals that in the past resulted in the supplier becoming a vital, incumbent vendor to the service providers.  The company could not have picked a better person than Rob Pullen to get Tellabs back to its former status.  

Obviously, overhauling the public relations department is hardly at the top of his list, as he has just taken charge in recent weeks.  However, Tellabs would be much better off keeping quiet than to use commissioned studies just for the sake of making statements.  It would have been more advantageous just to jettison the survey, despite any prior investment.  

Right now, Tellabs needs to win back the attention of hard-core network engineers, architectural planners, and product evaluators.  It is no time to be worrying about keeping industry analysts and members of the press happy with copy.  

Any distraction away from the key goal of getting back to technology fundamentals is not going to help the company.  Certainly, any discussion about progress on the key areas of focus whether they are DWDM/ROADMs, data products, or cross-connects, is the way to go in the future.

As an aside, the information released by Tellabs did not provide any startling new revelations about the state of the broadband market in the US. The large metropolitan areas continue to get the main attention and the more rural areas are forgotten by the major providers.