Summary
1. The cultures are very similar at both Tellabs and Adtran. 2. They are both nut-and-bolts kinds of companies without a lot of flash. 3. The question is whether Tellabs would want to get back into the access space.
Analysis
It is not necessarily the case that Tellabs would not want to get back into the access business. Given a much different approach (TA 5000) it would certainly be considered. Trying to build a PON system at what Verizon wanted to be at a fraction of the cost was problematic.
With a merger, the TA 5000 could also be sold off for a nice return. Calix might have an interest in acquiring the product because 1) it would gain a state-of-the-art, multipurpose access system and 2) it could ultimately provide a ticket into the RBOC space.
The biggest advantage for Tellabs would be the engineering development talent that it would acquire. Adtran has always been adept at building lower cost boxes with the features/functionalities that are really important to the carriers. These types of skills would be valuable to Tellabs because it fits in well with its own philosophy in designing products.
Adtran’s solutions would benefit from increased international exposure. Both would gain a more diversified product line. They each have a concentrated customer mix at this time.
