For Tellabs, optical is not an illusion. Optical, as in fiber optic cable, is the basis of its business. The networking infrastructure company installs and supports optical LANs (Local Area Networks) for businesses, government agencies, health care facilities, hotels, and schools (from K-12 through university). The company's Access segments offers products for the delivery of bundled services over the "last mile," or final leg, of networks. The company is owned by Marlin Equity Partners.
Change in Company Type
Tellabs was bought by Marlin Equity Partners for about $900 million in 2013 and taken private. Then in 2014, Marlin combined some of Tellabs businesses with those of another of its portfolio companies, Coriant. Marlin built Coriant from its acquisition of networking companies Nokia Siemens Networks and Sycamore. Tellabs is an independent company within the Marlin portfolio with the optical LAN and access businesses.
Tellabs’ passive optical LAN business sets up and services networks for a variety of clients. Optical LAN deliver information including voice, data, Internet, and more by high-speed fiber optic cable. It uses passive switches to route information, which reduces energy demand. The company’s Telco Access offerings provide a range of networking options to customers. The company also provides support and training for its products.
Tellabs is based in Naperville, Illinois, where it also has a sales office and a customer training center. It has a sales office in the Washington, D.C. area. Tellabs conducts research at a center in Dallas. It sells its products and services throughout the US.
Sales and Marketing
Tellabs targets organizations that have networking needs, particularly those that connect several locals in one network. Customers include the Santa Fe School System in New Mexico, SK Food Group, the Aurora Public Library in Aurora, Illinois, and Sandia National Laboratories. The company has a direct sales staff and it works with other companies to integrate their products for customers.
Tellabs focuses on passive optical LAN technology since it was spun out of the merger of the former Tellabs and Coriant, a merger engineered by Marlin Equity Partners, which owns the companies.
Tellabs positions optical LAN as a higher performance, more efficient alternative to copper wire-based networking infrastructure. Its technology is the backbone of Verizon’s FiOS and AT&T’s U-Verse voice, video, and data offerings. The company teams up with other companies to sell comprehensive communications packages. Tellabs worked with NCI Inc. to develop and install networking at NETCOM's Greely Hall facility at Fort Huachuca Arizona. It also worked with CORE Telecom Systems develop a network system for Elauwit, a provider of student housing at colleges.