The recent merger between Wavetek Wandel Goltermann and
TTC, a unit of Dynatec Corp., is expected to create a global giant in communications-test
"The merger zooms into the marketplace," said Joe
Perdano, senior vice president of North American operations for WWG. "What this
brings to the cable industry right now is that the combination of the two companies
will not only provide solutions for the core transport network but will be able to
integrate into a seamless solution data, telephone and cable, all under one company."
The new company, which will announce its new name later,
will have more than $800 million in annual revenue and 4,000 employees, and it plans to
invest $135 million annually in research and development.
The merger of the industry's Nos. 2 and 3 companies
will bring an expanded product and services portfolio, according to company spokesmen.
John Peeler, who will be the new company's president,
said the two companies have some overlap in product development, but "the strategy is
to look at areas in those markets to accelerate growth."
WWG, based in Eningen, Germany, has a leading position in
Europe, Latin America and the Asia-Pacific region, while TTC is considered a market leader
in North America.
WWG's sales of fiber optic solutions and testing
systems to service providers and its sales of transmission-test instruments to equipment
manufacturers are expected to increase due to TTC's North American market strength.
And sales of TTC's transmission, data instruments,
systems and software solutions are expected to benefit from WWG's global positioning,
according to the companies.
Consolidation to capture market share in the communications
industry is only going to grow in the future, Perdano said.
"Today, there's a consolidation in the test and
measurement industry, and that mirrors what's going on in the communications
industry," he said. "The cable industry used to be a delivery network, and now
it's evolving into a packet-based communications network."
Companies that don't have a breadth of knowledge that
encompasses video, voice and data won't be able to provide integrated solutions for
the consumer, he added.
The biggest challenge facing the companies is
"delivering on the promise," he said. "If you look at what's happening
in equipment manufacturing customer needs are fundamentally changing. Bringing
solutions is going to be the key," Perdano added.
To remain flexible and competitive, the new company hopes
to capitalize on the knowledge of its employees. "The trick is to have all of the
benefits of a large company, without losing sight of our entrepreneurial spirit,"