Tellabs, Inc. was incorporated in 1975 as an Illinois corporation. In 1992, our shareholders approved the formation of a holding company structure. Under that new structure the shareholders of Tellabs, Inc., an Illinois corporation, became the shareholders of a new holding company, Tellabs, Inc., a Delaware corporation. Tellabs’ goal is to enrich people’s lives by innovating the way the world connects. We work toward that goal by designing and marketing equipment and services to communications-services providers worldwide.
On December 1, 2009, we acquired WiChorus, Inc. (WiChorus), a supplier of industry-leading infrastructure products for the mobile Internet. This acquisition will enable us to quickly enter a large and fast growing market with a purpose-built 4G, LTE, and WiMax mobile-network solution that can be used in today’s 3G networks and complements our IP mobile backhaul portfolio.
In November 2004, we acquired Advanced Fibre Communications, Inc. (AFC) of Petaluma, California, a leading supplier in North America of “last-mile access” products. We deliver residential voice, data and video services over fiber-optic networks. In addition, in December 2004, we acquired Vinci Systems, Inc. (Vinci), a privately held developer of customer-premises equipment used for fiber access. This acquisition accelerated our ability to deliver cost-reduced and feature-enhanced components of the solution we acquired with AFC. Beginning in 2008, we reduced our investment in this residential access business and focused on more profitable opportunities in mobile, optical and business markets.
Our products and services enable our customers to deliver wireline and wireless voice, data and video services to business and residential customers. We sell our products domestically and internationally through our field sales force and distributors/partners. Our customers are primarily communication services providers, including local exchange carriers (LECs); global wireline and wireless service providers, multiple system operators (MSOs), and competitive service providers (CSPs). Our customer base also includes distributors, original equipment manufacturers (OEMs), system integrators and government agencies.
While we market our products under a variety of solution names, we run our business and report operating results in three segments: Broadband, Transport and Services.
Within the Broadband segment, we market our products in three areas: data, access and managed access.
Data products include next generation packet-switched products that enable wireline and wireless carriers to deliver business services and next-generation mobile voice and Internet services to their customers. Data products include the Tellabs® 8600 managed edge system, the Tellabs® 8800 multiservice router (MSR) series and the Tellabs® SmartCore™ 9100 platform.
•The Tellabs 8600 system is an aggregation platform for next-generation wireless providers. It provides a cost-efficient way to migrate from 2G to 3G and 4G networks by using pseudowire technology to manage TDM, frame relay, ATM, Ethernet and IP traffic in a single device. It is ideal for current customers of the Tellabs® 6300 and the Tellabs® 8100 managed access systems because it fully integrates with those platforms under the Tellabs® 8000 network manager.
•The Tellabs 8800 MSR series enables service providers to leverage existing infrastructure to seamlessly and cost-effectively integrate all their networks (ATM, Frame Relay, Ethernet and IP) onto a converged MPLS network, while retaining quality of service. This capability enables users to share information regardless of their access technology. The Tellabs 8800 MSR is unique in its ability to take in traffic of any network type and route it over any other network type.
•The Tellabs SmartCore™ 9100 platform is a mobile core gateway designed for the new generation of 4G mobile networks. This platform addresses High-Speed Packet Access (HSPA) and Evolved HSPA (HSPA+), WiMAX and Long Term Evolution (LTE) mobile packet core needs. In addition, the platform can be used in today’s 3G networks to provide a smooth migration path to 4G. Content inspection capabilities and ample resources for state information enable Quality of Service (QoS) support, policy enforcement and billing for large numbers of subscribers. The platform enables the wireless carrier to create new revenue-generating services by delivering personalized content to mobile users.
Access includes products that enable service providers to deliver bundled voice, video and high-speed Internet/data services over copper or fiber networks. Specifically, access products enable service providers to deliver these services over the “last mile” of the communications network, the part of the network that is closest to homes and businesses. Access offerings include the Tellabs® 1000 multiservice access series, the Tellabs® 1100 multiservice access series and the Tellabs® 1600 optical network terminal series (ONTs).
•The Tellabs 1000 series can be configured as a digital loop carrier (DLC), a digital subscriber line access multiplexer (DSLAM), a fiber-to-the-premise (FTTP), optical line terminal (OLT) for broadband passive optical networks (BPON), or a voice gateway for voice over Internet protocol (VoIP).
•The Tellabs 1100 series can be configured as DLC, DSLAM, and FTTP OLT for gigabit passive optical networks (GPON), as well as for fiber-to-the-curb (FTTC), or fiber-to-the-node (FTTN) network architectures. In addition, this platform can be used to deliver enterprise GPON services such as fiber-to-the-desktop (FTTD).
•The Tellabs 1600 series of ONTs consists of remote devices installed at user locations (i.e., single-family homes, multi-dwelling units, and small businesses) in both BPON and GPON FTTP and FTTD network architectures.
Managed access includes aggregation and transport products that deliver wireless and business services primarily outside of the United States. Voice-over-cable products, used to deliver voice and data services over cable television networks, also are included in this segment. Managed access products include the Tellabs 6300 managed transport system, the Tellabs 8000 network manager and the Tellabs 8100 managed access system.
•The Tellabs 6300 system is a packet optical transport and access platform that serves wireline and wireless operators primarily outside of North America.
•The Tellabs 8100 managed access system is used outside of North America in business service and wireless networks.
•The Tellabs 8000 network manager provides full network management across a wide range of Tellabs products. The Tellabs 8000 manager fully supports the Tellabs® 3700 multimedia controller, Tellabs® 5500 digital cross-connect, Tellabs® 5320 L/S digital cross-connect, Tellabs 6300 managed transport system, Tellabs® 7100 optical transport system, Tellabs® 7300 metro Ethernet switching series, Tellabs 8100 managed access system, Tellabs 8600 managed edge system, and Tellabs 8800 multiservice router series. The network manager offers end-to-end management for 2G and 3G mobile backhaul applications, carrier-class Internet, virtual private network (VPN) and extranet services for corporate customers, business broadband Internet access and corporate voice services.
The Transport segment includes solutions that enable service providers to transport services and manage bandwidth by adding capacity when and where it’s needed. Wireline and wireless providers use these to support wireless services, business services for enterprises, and triple-play voice, video and data services for consumers. Products include the Tellabs® 3000 voice-quality enhancement products, the Tellabs® 5000 series of digital cross-connect systems, the Tellabs® 7100 optical transport system and the Tellabs® 7300 metro Ethernet switching series.
•The Tellabs 3000 series enables service providers to improve voice quality and ensure calls are echo-free. Wireless operators have directly attributed revenue accretion and customer retention to this higher quality service.
•The Tellabs 5000 series of digital cross-connects manages and routes voice, data and video traffic and combines, consolidates and segregates signals to maximize efficiency. It also provides a centralized point for network performance monitoring and testing, as well as converting different signal formats. The Tellabs® 5500 digital cross-connect is used by every major service provider in North America. It enables service providers to reduce equipment and maintenance costs and maximize network profitability.
•The Tellabs 7100 optical transport system enables service providers to deliver high-speed wavelength services and alleviate bandwidth bottlenecks. The Tellabs 7100 system integrates optical and electrical transport via wavelength selective switches (WSS), ROADM (reconfigurable optical add-drop multiplexing), Ethernet switching, next-generation SONET/SDH MSPPs (multiservice provisioning platforms) and DWDM (dense wave-division multiplexing) into a single platform. It decreases capital and operating expenses by eliminating network elements and reducing equipment interconnections. The Tellabs 7300 metro Ethernet switching series extends a Tellabs 7100 or Tellabs 8000 network solution to the customer’s premises for any size application. The Tellabs 7300 series offers a portfolio of Ethernet switching products that address service management, provisioning, monitoring and troubleshooting.
The Services segment delivers deployment, training, support and network design/consulting services to Tellabs’ customers. Through these offerings, Tellabs supports our customers through all phases of running a network: planning, building and operating.
•Services in the planning phase include network architecture and design, network and applications planning, network management design, migration planning and others.
•Building services include applications integration, program and project management, installation, testing, network integration, third-party systems integration and others.
•Once networks are deployed, Tellabs offers a variety of operating services including network optimization, onsite engineering, network monitoring, remote and onsite support, capacity management, training and others.
At January 1, 2010, we had 3,295 employees. We employed 1,278 individuals in research and product development; 1,254 in the sales, sales support, customer service and marketing areas; and 763 in support activities. We consider our employee relations to be good. We are not a party to collective bargaining agreements.