Responding to the need for a single network to deliver multiple services, Tellabs is buying Future Networks, a developer of standards-based voice and data cable modem technology. After the purchase is complete, Tellabs will be able to provide cable operators with an end-to-end multi-services system based on Internet protocol.
"There are many benefits to our customers," Tom Gruenwald, vice president and general manager Access Systems Division, Tellabs, tells CEDaily. "Tellabs can deliver equipment to our customers in an end-to-end packet-based solution. To deliver voice and data services, it currently requires two networks, and the training and staff to maintain those networks. In the future, MSOs, will have one network that is packet-based, carrying all these services. One network equates to lower cost for them.
"Because Tellabs is providing an end-to-end solution, we can give them all the pieces. Our customers don't have to go from one vendor to another to get the equipment they need, fit them together, and [the customer doesn't] have to referee when things go wrong. Our customer can manage their investments in a much smoother fashion," says Gruenwald.
Future Networks makes the customer premise equipment that supports the packet networks. The company will be folded into Tellabs' research and development division for the cable telephony and cable data systems and will be integrated into the Access Systems division, based in Atlanta.
Analysts predict the cable data and telephony markets will grow from $1 billion in 2000 to $7 billion in 2003.