Telecomms equipment vendors are in an acquisitions frenzy this week in a bid to compete in the cut throat carrier and data networking markets.
Tellabs and Ciena, two relatively unknown US developers, are joining forces in a $7 billion deal to tackle giants Lucent and Nortel, while Alcatel of France is to bag DSC for around $4.4 billion. DSC develops digital switching, transmission, access and network management systems.
Ciena designs optical dense wavelength division multiplexing (DWDM) technology, which enables telcos to build high capacity IP backbones to carry data and video services, rather than attempt to use their traditional TDM networks.
It recently opened a development centre near Heathrow, London, and counts Cable & Wireless among its clients.
The firm also recently acquired start-up Terabit Technology to provide a key component in its strategy to enable telcos to carry data as efficiently as voice.
In April Ciena teamed up with Cisco to integrate the data networking giant?s 12000 Gigabit switch router with its DWDM technology.
Tellabs designs voice and data transport and access systems. It creates ?digital cross connect? products that help telcos manage their networks and deliver services to business and residential subscribers.
The firm is also in the middle of acquiring Coherent Communications Systems which manufactures systems that reduces echo sounds on cellular and fixed wire telephone calls.
Patrick Nettles, Ciena president and chief executive, said: ?Our partnership with Tellabs is an acknowledgment that together, we can do a lot more, a lot quicker.?
Alcatel?s acquisition of DSC will give the French company access to the US market through DSC?s share of the regional ?Baby Bells? market.
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