TXP Corporation (fka TXPO)

[jmack3265]

I'm not so sure that ONTs are shrouded in that much of a mystery and this is why IMO.

From Adtran's Transcript:

"In the fourth quarter, our Broadband Access business continued to migrate to fiber-to-the node applications in a move to upgrade bandwidth."

"In the fourth quarter, we began shipping this new platform to our first tier 1 carrier account. These shipments were tied to Ethernet over copper, which is one of two applications we have now been awarded within this account."

The majority of Adtran's fiber business came from a Latin American carrier and AT&T who is deploying fiber to the node "FTTN" and does NOT require a ONT. Both of Adtran,s platforms mentioned, Total Access 5000 and Netvanta 1000 support VDSL & ADSL2 & +2. If I understand correctly, the Total Access 5000 is the flagship so to speak because it affords the flexibility to support both FTTN & FTTH. This was a smart move on the part of Adtran because it allows service companies the ability initially deploy lower cost FTTN networks and the ability of scale or upgrade to a all fiber FTTH network in the future from one platform. This also IMO was a kick in the pants to TLAB.

Initially I would not be surprised to see the FTTN route taken by many carriers globally simply because of economy of scale or cost of deployment but eventually will build out to all fiber FTTH in the future.

With regard to FTTN:

"When rolling out VDSL2 services, however, carriers will want to think beyond traditional xDSL modems. Since new services will incorporate video and voice functionality, it will be necessary to include Ethernet-based service gateways and VoIP adapters. The carriers will need to control the equipment further into the home to guarantee reliability and Quality of Service (QoS) that are enabled in gateways."
http://www.convergedigest.com/bp-ttp/bp1.asp?ID=232&ctgy=

So the question I have, if FTTN is dominant at first, how does this affect TXP? VDSL & ADSL for voice & Data would simply require a modem however triple and quadruple play would require a "Gateway" or a means to incorporate voice, video, data applications through a single device with controlled quality of service. Hopefully and aside from ONTs TXP is working on a network interface device (NID) or a gateway that addresses FTTN as well as FTTH.

"Under the agreement, TXP will augment ADTRAN’s GPON offering with ONTs designed for multiple targeted applications. Additionally, TXP will supply a customized family of its outside plant cabinet retrofit kits to support the deployment of ADTRAN’s Total Access 5006, a carrier class multi-service access and aggregation platform."

"multiple targeted applications" My first inclination would be "greenfield" or new construction. No secret that TLAB is hurting and would agree that Adtran and others have eroded TLAB's market share but the positive aspect for TXP is all the OSP's that will need to be retrofitted and the agreements in place with both Adtran & TLAB.

This is going to be very interesting to see how this all plays out for TXP and now with the appointment of Troxel from VZ it gets even more interesting with his expertise on the enterprise level.