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News >> Technology >>
Tellium frees C&W from contract, to get purchases
By siliconindia
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Wednesday, 18 December 2002, 20:30 IST
OCEANPORT: Tellium Inc. (Nasdaq:TELM) on Tuesday said it freed Cable & Wireless Plc (London:CW.L) of obligations to buy $350 million worth of network gear in return for the purchase of an unspecified amount of equipment next year.
"Since we signed the original contract, a lot of things have changed in the telecommunications business, for the industry as a whole and for Cable & Wireless," said Harry Carr, Tellium's chairman and chief executive officer. "It became clear in our discussions with Cable & Wireless that the original contract, signed before the industry downturn became evident, had actually become an impediment to moving forward with our relationship. Since our focus has always been on creating a successful long-term relationship, amending the existing contract was clearly required. It's a clear 'win-win.' Cable & Wireless can now purchase Tellium equipment without worrying about the original commitment, and Tellium now has much greater visibility for the first half of 2003."
Tellium expects that Cable & Wireless will purchase Tellium's Aurora Optical Switch, its Aurora 128, as well as the latest version of the company's StarNet Suite of software products, which includes the StarNet Optical Virtual Private Networks, the most recent addition to the StarNet Optical Services portfolio.
"We appreciate Tellium's flexibility concerning our original contract obligations," said Andy Macleod, chief operating officer of Cable & Wireless. "They have always demonstrated a long-term view of our relationship and this amendment continues to demonstrate that. With the amendment behind us, we can focus on receiving the value that Tellium and its capabilities can bring to Cable & Wireless. We are looking forward to a mutually beneficial relationship."