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Tellabs halts GPON supplies to Verizon

NAPERVILLE, April 2, 2008 – Tellabs announced today it will no longer be one of three suppliers of gigabit passive optical technology for Verizon's rollout of a high-speed fiber network.

Verizon is deploying gigabit passive optical network technology in its massive buildout of fiber to the premises in several states. Tellabs was one of three vendors supplying the equipment; the others are Alcatel-Lucent and Motorola. Verizon has not named another supplier to replace Tellabs.

The Tellabs announcement said the decision to discontinue current GPON activities focused on Verizon "serves the best interests of both companies and their respective stakeholders." Tellabs will continue to supply Verizon with other technology, it said.

According to Tellabs, the company is currently evaluating the impact of the decision on its various divisions.

The Petaluma division, formerly AFC, is mainly focused on broadband-access technologies, including GPON.

The Petaluma division currently employs 250.