Tellabs GPON move leads to more questions

Following Tellabs' exit from a GPON supply deal with Verizon Communications, industry analysts may be waiting for the other shoe to drop. Will Verizon exit the PON market entirely? The company says it is still committed to competing in the PON business, and with the market set to grow 41% annually over the next few years to $5 billion, according to Infonetics Research. With that in mind and carriers worldwide having a need for PON, what would be the point in leaving? Even if the Verizon supply deal was a money-losing proposition, as analysts suggest, that may not be true of deals with other carriers, especially international deployments.

When Rob Pullen recently became CEO of Tellabs, the former international sales executive indicated a stronger focus for Tellabs on international deployments. Perhaps being free of a difficult Verizon deal will give Tellabs more resources to do just that.

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