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News update


CommScope buys TE’s broadband network unit for $3 billion


TE Connectivity has agreed to sell its broadband network business unit to


CommScope for $3.0 billion (€2.64 billion). The networks business, one of the company’s four divisions, includes TE’s telecom, enterprise networks and wireless operations. Together these businesses generated


$1.9 billion of revenue in fiscal 2014, consisting of $1.1 billion from the telecom business, $627 million from enterprise, and $164 million from wireless. The sale does not include TE’s subsea


communications or datacom businesses, which also report into TE’s networks division. CommScope, which makes cable television


equipment, enterprise and data centre infrastructure, and wireless products, says the acquisition will help it enter attractive adjacent markets such as wireline telecom and fibre-to-the-x (FTTx). The company believes TE’s fibre technology will put it in a better position to address the transition from copper to fibre, as optical fibre is deployed


deeper into networks and data centres. ‘This is an important and transformative


acquisition for CommScope, bringing together complementary geographic and customer coverage, products and technologies for the benefit of our stockholders, customers and employees,’ said Eddie Edwards, CommScope president and CEO. TE’s telecom business forms the largest part


of the deal. This includes the fibre-optic and copper connectivity products deployed in the outside plant of a telecom or a cable network – everything in the path from the cable head end or a telecom central office through the network to the consumer’s house or to a node close to the house. The enterprise business includes structured


cabling for the enterprise or in the data centre, and the wireless business is what TE describes as a relatively small, ‘niche’ distributed antenna systems business. All of the digital antenna business came to TE when it purchased ADC Telecommunications


Intel targets connected home with Lantiq acquisition


Intel has agreed to buy Lantiq Semiconductor, a Germany- based supplier of broadband access and home networking semiconductors for an undisclosed sum. The acquisition will expand


Intel’s opportunities in the growing market dubbed the Internet of Things (IoT), where everyday items – from heart monitors to automobiles– are connected to the cloud via embedded electronic devices.


Intel will also gain a


stronger foothold in the cable residential gateway market and broaden its offering to other gateway markets, including DSL, vectoring and G.fast, fibre access networks (via GPON chips), and even LTE, cordless phones and smart routers. Dan Artusi, Lantiq CEO said:


‘Intel and Lantiq share a common vision about the evolution of the connected


home and the intelligent network. Together we can drive the transformation of the broadband customer premises equipment as it becomes a smart gateway that connects an increasingly diverse roster of devices and services in the home.’ Privately held Lantiq was


formed in 2009 when Golden Gate Capital purchased the former operations of Infineon Technologies.


Intel and Lantig share a vision for the connected home


back in 2010. About 20 per cent of the enterprise business came from ADC and a little over half of the telecom business came from ADC, according to Tom Lynch, TE Connectivity chairman and CEO. For TE, the sale means a greater focus on the


connectivity and sensor markets, which are expected to account for approximately 90 per cent of TE’s product portfolio after the sale. ‘Our decision to sell our broadband network


solutions business reflects our strategy to continue focusing on and expanding our leadership position in the attractive connectivity and sensor markets, with particular emphasis on harsh environment applications,’ said Lynch. He believes these markets represent a


$165 billion opportunity for TE, driven by the global trends of a safer, smarter, greener and more connected world. As billions of devices, objects and people become part of the Internet of Things, products based on TE technology will sense, connect and transmit the data being created.


NEWS BUSINESS


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Issue 7 • Spring 2015 FIBRE SYSTEMS 5


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