Tellabs gets Occam’s Razor

After spending billions on buying Advanced Fibre, Tellabs is making a defensive move and investing in broadband loop carrier, Occam Networks. Tellabs invested $2 million in Occam, which raised a total of $4.9 million in latest round of founding. Other investors include Alta Partners, US Venture Partners, Norwest and New Enterprise Associates. The two companies also announced a strategic alliance that allows Tellabs “exclusive rights to market, sell, and support Occam Networks’ Broadband Loop Carrier products to select large North American local exchange carriers.” Now AFC might have the goods to delivered fiber to the homes, but looks like it couldn’t juice down the copper lines. SBC and BellSouth are two companies that want to use copper tips on a fiber infrastructure. Occam also has some great IPTV technology and is already finding traction with some of the smaller players. This deal means Tellabs-Occam together can go after guys like Calix and Entrisphere. (More information at Light Reading)