CORNING LOSSES BELLSOUTH FIBER BUS. NOT TO MANY METRO PROVIDERS OF BELLSOUTH SIZE.
Monday December 10 3:31 PM ET ADC Signs Contracts with BellSouth
MINNEAPOLIS (Reuters) - Telecommunications equipment maker ADC Telecommunications Inc. (Nasdaq:ADCT - news) said on Monday it has a multiyear agreement to supply broadband connectivity products, systems and integration services to local telephone company BellSouth Corp. (NYSE:BLS - news)
ADC, whose products are used for high-speed Internet and voice lines, did not disclose terms of the deal, but analysts estimated it could be a three-year to five-year contract worth several hundred million dollars.
ADC's stock was off 13 cents, or 2.4 percent, at $5.29 in late trading on the Nasdaq.
``ADC has provided BellSouth with a solution for its existing broadband network that results in significant operating savings,'' Peter Hill, BellSouth's vice president of technology planning and deployment, said in a statement.
Robert W. Baird analyst Ted Moreau said in a research report that the deal could be worth several hundred million dollars over three years to five years, and came at the expense of rival Avaya Inc. (NYSE:AV - news).
He said the BellSouth business was previously split evenly between ADC and Avaya. Merrill Lynch said ADC beat out Avaya and Telect Inc. for the connectivity business, and Lucent Technologies Inc. (NYSE:LU - news) and Corning Inc. (NYSE:GLW - news) for the fiber business.
Atlanta-based BellSouth will use a wide array of ADC products ranging from digital signal cross connects, optical cross connects and fiber cabling systems that will allow the company to realize volume-based savings, ADC said. The products will be used in BellSouth's nine-state southeastern U.S. territory.
The agreement also calls for the consideration of ADC systems integration services in deploying the products and systems, ADC said.
Oliviah Dear, your info is just not correct. The press release you cite is probably accurate because Bell South is generally truthful. However, ADC does not manufacture either fiber or cable. They do compete with Corning on a few items like connectors, etc., but these don't really count for much in either sales dollars or NPAT for GLW. Fiber and cable are what makes or breaks GLW's numbers for the forseeable future....and this announcement has nothing to do with that. What if I suggest that IMO Corning's share of Bell South's cable business is increasing? You, and others should check that out. I actually believe Corning is increasing its share of the fiber cable business overall in the US even though that business is off significantly. I do believe the buying opportunity for GLW stock is still in front of us, but we should try to work from facts as much as possible rather than listen to your blather. You obviously do not understand the industry, so save your money for bon bons and perfume. Otherwise you will lose it all.