The manufacturer claims to be the first company to convert its GPON platform into an enterprise switch, back in 2009, to enable enterprises to take advantage of the bandwidth capacity and lower costs of passive optics, and considers itself a global leader in optical LANs. Tellabs is getting competition in the field from Motorola Inc. (NYSE: MOT) and newer fiber-to-the-desktop players such as Zhone Technologies Inc. (Nasdaq: ZHNE) are also exploring how to use their PON expertise in what is expected to be a growing market. (See Moto Expands PON Family.)
Other companies capitalizing on this market are fiber management firms, such as 3M Co. (NYSE: MMM) and TE Connectivity (NYSE: TEL).
Tellabs has had success selling its optical LAN technology into enterprises through Value Added Resellers, and into federal government agencies. One of its new pushes is to encourage telecom service providers, especially those in rural areas, to look to optical LAN technology as something they can sell to their business customers, as part of a hosted or managed service they deliver, says Van Horne.