Lucent makes cable TV move with Ortel buy

Lucent makes cable TV move with Ortel buy


Lucent Technologies has announced plans to acquire Ortel, which makes optoelectronic components for cable TV networks, in a stock deal worth approximately $US2.95 billion.

Ortel's fibre-optic technologies help boost the bandwidth of cable networks, which is necessary to meet the increasing demand for services, such as Internet telephony and high-speed access.

`This [purchase] bolsters Lucent's overall optical portfolio and it gives Lucent a stronger presence in the cable access market, which they needed,' said Ron Westfall, a senior analyst at Current Analysis in the US.

`On the down side, I'm not sure that Lucent will get $3 billion worth,' Westfall said.

`[Ortel's technology] has a specific application for the cable access market, but Lucent still needs other key pieces for the cable access space, like routing sys-tems for the backbone of cable access networks, cable modems, and cable head-end systems.

`They don't yet own a lot of tech- nology if they are serious about being a stronger player in the cable access market.'

Ortel will become part of Lucent's optoelectronic components division. The acquisition is expected to be completed in June.

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