Uncommon Wisdom

Jul 21 2010   4:40PM GMT

Tyco ADC acquisition could signal metro plant changes

Tom Nolle Tom Nolle Profile: Tom Nolle

With the acquisition of broadband network connectivity vendor ADC for $1.25 billion in cash, Tyco Electronics may be looking at profiting from the broadband-driven changes to metro plant for incumbent local exchange providers worldwide. As we’ve noted before, there’s a sharp decline in interest in basic telephony and a collateral lack of interest in modernizing TDM plant.

The impacts of a packet-only decision would spread from the access network inward to first- and tandem-tier offices, and the mixture of products from the newly merged company could address the shifts nicely. What’s not yet clear is whether they could get the engagement to do so.

The modernization of metro infrastructure is not happening reactively based on an orderly technology evolution but proactively based on new service opportunities. Chances are that the players that have a stake in the transformation of infrastructure that these opportunities will create will also have the best shot at the metro-modernization game.

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