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FOR IMMEDIATE RELEASE
Nov. 4, 2009

Optical is the clear winner in future telecom networks

New survey reveals service providers seek operating efficiencies and cost savings from the transition to optical networks over the next five years

São Paulo – In the next five years, telecommunications professionals expect to improve communications efficiency and reduce costs by transitioning infrastructures to optical networks, according to a new survey released today. The survey shows that by the end of 2014, more than 60% of respondents expect the majority of their network infrastructure will be optical. In that same time period, 43% of respondents predict that video will constitute more than half of network traffic.

The telecom industry in Latin America is placing greater emphasis on making networks greener. More than 90% of respondents think it is important to lower network power consumption.

On the road to optical
Tellabs and research firm IDC conducted the survey of 482 telecom industry professionals at Futurecomm ’09 in Sao Paulo, Brazil. The survey tracked respondents’ current and planned optical deployments, network transport methods and video traffic levels, and benefits of transitioning to optical networking.

According to the survey, respondents believe that service providers will transition to optical networks over the next five years to improve speed and capacity (84%), provide cost savings (47%), simplify network management (33%) and save energy (33%).

More than 40% of respondents reported that less than 15% of network infrastructures are optical today. But, within five years, 39% of those surveyed predict more than 75% of network infrastructures will be optical; more than 60% foresee half of their networks being optical.

“The findings of this survey reveal that telecom professionals in Brazil understand the tremendous impact traffic growth will have on networks in the near term,” said Tarcisio Ribeiro, vice president of sales for Tellabs’ Latin America and Caribbean region. “Optical networks are the right choice to improve network capacity, lower costs and reduce power consumption.”

Regarding the technology, 39% said that today they use SDH/SONET and 36% use Carrier Ethernet. According to the survey, in five years the technology will change to 39% Carrier Ethernet and 24% DWDM; only 14% believe they will continue to use SDH/SONET.

“The survey respondents clearly understand that operators in Brazil have infrastructure issues that need to be solved quickly,” said Vinicius Caetano, Telecom Analyst, IDC. “Operators must invest in highly cost-efficient and scalable solutions to be ready for the inevitable demand increase.”

About Tellabs — Tellabs helps customers succeed through innovation. That’s why 41 of the top 50 global telecom service providers choose our mobile backhaul, optical networking and business services solutions. We help telecom service providers, independent operating companies, MSO/cable TV companies, enterprises and government agencies get ahead by adding revenue, reducing expenses and optimizing networks. With wireless and wireline networks in more than 90 countries, we enrich people’s lives by innovating the way the world connects™. Tellabs (Nasdaq: TLAB) is part of the NASDAQ Global Select Market, Ocean Tomo 300™ Patent Index, the S&P 500 and several corporate responsibility indexes including FTSE4Good and eight KLD indexes. http://www.tellabs.com

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