Motorola Makes Quantum Leap in Fiber Buy

Retooling wireless giant Motorola (MOT Quote) is hoping a gamble on optical gear will light up sales in its broadband division.

The Schaumburg, Ill., tech shop agreed to pay an undisclosed amount of cash for closely held Quantum Bridge, a 70-employee fiber optic systems maker based in Andover, Mass. The move would enable Motorola to offer Quantum Bridge's so-called fiber-to-the-premises equipment to phone and cable companies.

On Tuesday, Motorola slipped a quarter, to $17.33. The stock has more than doubled off its year-ago low as investors have started betting on an uptick in telecom industry capital spending.

Investors got a charge late last year when big Bells such as Verizon (VZ Quote) and SBC (SBC Quote) said they intend to use fiber-optic lines instead of copper cable as a future access path to homes and businesses. The fiber connections could one day enable phone companies to sell TV, Internet and calling services -- the fabled triple play of telecom. ...