Principal Broadband Stimulus Winners Likely to be the Three Cs: Contractors, Corning, and Calix

NASHVILLE, Tenn.--(Business Wire)--
Large construction firms contracted by the independent telcos will get the
biggest amount of money because about 60 percent of Fiber-To-The-home (FTTH)
costs are in this activity, according to a recent report by Telecom Pragmatics.
Corning is the dominant optical fiber provider in the US as well as a large
supplier of other outside plant equipment. Calix will likely continue to be the
market share leader as an overall access provider to the IOCs because as a
private company, it can afford to put market share ahead of margin.

Others that will greatly benefit include FTTH electronics manufacturers like
Enablence as well as vendors of passive gear for these applications. Also, given
the relatively large amount of funds devoted to the "middle mile," optical
transport suppliers will substantially benefit. In addition, there should be
noticeable sales of head-end gear as well as routers for the backend. Moreover,
there could be a fair amount of money spent on HFC upgrades by the cable TV
companies.

Telecom Pragmatics believes that regarding the use of stimulus money, FTTH will
substantially dwarf DSL, wireless, and other solutions.

Telecom Pragmatics published this information in the July 2009 issue of
Independent Telco Tactics Monthly -- "Government Stimulus Impact on Telecom
Infrastructure at IOCs." Its authors include Sam Greenholtz, John Griffin, Mark
Lutkowitz, and David Gross.

Telecom Pragmatics is an independent research firm specializing in
telecommunications markets and related technologies since 2003.

Telecom Pragmatics
Mark Lutkowitz, 615-460-7470
mark@telecompragmatics.com
www.telecompragmatics.com

Copyright Business Wire 2009