Tellabs, Carrier Access joint backhaul effort stalls

The wireless backhaul product developed jointly by Carrier Access and Tellabs has been snubbed by the operator for which it was created, Carrier Access revealed this week.

“The solution was developed for a specific customer that informed us they are looking at alternative technologies--in effect, halting, at this time, the rollout at this particular target customer,” a Carrier Access spokesperson said in an email to Telephony this week. “We still feel confident about the [radio access network (RAN)] optimization market nonetheless and are working with partners to bring this technology to market for other potential customers.”

In April, the two vendors announced the integration of Carrier Access’ FLEXengine hardware and software in a card to be inserted in Tellabs’ 5500 crossconnect, widely used for wireless backhaul. The resulting gear would allow wireless operators to backhaul GSM, UMTS and IP traffic over a common network, sharing bandwidth efficiently among the different traffic types to reduce bandwidth requirements for carriers migrating to next-generation networks. That integrated combination would be generally available in the second quarter, the companies said in April. But in fact, it was never released and is not generally available now, a Tellabs spokesperson told Telephony this week.

In the company’s third-quarter earnings call this week, Carrier Access’ Chief Executive Officer Allen Snyder said “work” on the joint solution was “concluded.”

Carrier Access has been reviewing strategic alternatives in recent months, meeting with several entities about a possible sale of the company. The integration of its gear with Tellabs was a key reason that at least one analyst considered Tellabs a likely candidate to acquire the company.

Meanwhile, Carrier Access is also pursuing partnerships with other original equipment manufacturers, in some cases as a software supplier. “A large number of equipment vendors have expressed interest in working with us through this OEM model, and we are actively pursuing discussions,” Snyder said.

Twenty-five percent of Carrier Access’ third-quarter revenue came through vendor partners and distributors, down from 30% in the second quarter. Total third-quarter revenue was down 4% sequentially and down 54% from a year earlier to $7.4 million. The company expects fourth-quarter revenue to be sequentially flat.

The company reported a $2.8-million charge in the quarter for inventory reserves. “Our best effort to sell this inventory over recent quarters was unsuccessful,” said Gary Gatchell, Carrier Access’ chief financial officer.