ADC Telecommunications Wins Major Contract for Optus Vision Broadband Network

Strategic Insights -

ADC Telecommunications, Inc. (Nasdaq: ADCT) has secured a significant contract valued at up to $185 million to supply advanced broadband technology to Optus Vision, an Australian-based consortium developing the world's first combined telphony and home entertainment service. The Optus Vision broadband network, currently under construction in Australia, is the first network to combine broadcast video, interactive video, and telephone services down a single fiber-optic/coaxial line. ADC will support the project by supplying its Homeworx(TM) access platform and broadband connectivity products, while also involving local subcontractors in the manufacturing, assembly, and testing processes.

Key Takeaways:

  • ADC has won a major contract worth up to $185 million to supply broadband technology to Optus Vision, an Australian-based consortium.
  • The Optus Vision broadband network is the first in the world to combine broadcast video, interactive video, and telephone services down a single fiber-optic/coaxial line.
  • ADC's Homeworx(TM) access platform will transport telephone services over Optus Vision's hybrid fiber/coax network.
  • ADC will support Australian industry by involving local subcontractors in the manufacturing, assembly, and testing processes, including AOFR Pty. Limited, which ADC recently acquired.
  • The Optus Vision system will also feature a telemetry interface for monitoring and reporting the status and usage of utility services.
  • ADC's Homeworx telephony system includes a host digital terminal installed in local exchange offices and an ISU integrated service unit located at or near the customer premises.
  • The Optus Vision system aims to provide telephony, home entertainment, and interactive services to more than 50% of Australian homes by the end of 1998.

Statistics:

  • The contract value is estimated to be worth up to $185 million.
  • Optus Vision is a $185 million (U.S.) project.
  • More than 50% of Australian homes are expected to have access to telephony, home entertainment, and interactive services by the end of 1998.
  • The Optus Vision broadband network is currently under construction in Australia.
  • ADC has deployed its Homeworx(TM) access platform with or has been in field trials with Ameritech, Cox Cable, Nynex, PacBell, and SNET.

Sources:

  • ADC Telecommunications, Inc., announcement (February 27, 1995)
  • Optus Vision press release
  • Continental Cablevision press release