In a deal expected to bolster Motorola Broadband's fiber optic transmission portfolio for voice, video and data services, Motorola Inc. has closed its stock-for-stock acquisition of San Jose, Calif.-based Synchronous Inc.
Synchronous, now part of Motorola Broadband's Transmission Network Systems (TNS) unit, will help Motorola fill some technical gaps, particularly in the area of 1550 nm digital transport technology, a cost-effective transmission method that touts higher power, less loss and greater distances.
Synchronous, a 1550 nm specialist, complements Motorola's existing 1310 nm product line, said Charles Dougherty, vice president and general manager of Motorola Broadband's TNS division. That will come in handy, he said, as operators phase upgrades from local plant to their backbone networks and interconnect their headends.
Though 1310 nm is a strong technology for point-to-point narrowcast, and the majority of MSOs use it in their access networks, 1550 nm is becoming a more popular option, Dougherty said.
"We had existing 1550 nm product, but that wasn't our focus, and Synchronous has dominated that segment," he added, noting Synchronous' strong North American customer base, which includes Cablevision Systems, Charter Communications, Time Warner Cable and Rogers Cable Inc. Synchronous also offers equipment that addresses digital return and DWDM (dense wave division multiplexing) technologies.
Dougherty said Motorola hopes to leverage Synchronous' technology in other parts of the world, including Germany and the Asia-Pacific region.
Motorola also plans to target the traditional telecom sector. "That's a space we don't play in, but one we want to play in," Dougherty said. "We think can develop that channel as a near-term goal for 2002."
Financially, the addition of Synchronous will likely add 20 percent to TNS' incremental revenue, Dougherty predicted, but declined to provide specific figures.