"Telcom Capital" loses another
BBN is latest high-tech firm to exit Massachusetts
By W. David Gardner, EE Times
Cambridge, Mass. -- Talk about bad timing. Last month, Massachusetts
awarded itself the title of Telecommunications Capital--presumably of the
universe. The coronation was based on a bullish study of telecom employment
in the Bay State, a study issued by a group headed by Stephen Levy, the former
chairman of BBN Corp. of Cambridge, Mass.
Now BBN, which is being acquired by GTE Corp., is moving to Dallas.
Massachusetts has a long history of pioneering high-tech businesses, only
to lose control--and subsequent jobs--to companies in other parts of the
nation. Just last month, Hewlett-Packard Co. announced it would move its
Massachusetts workstation operation to Colorado. The former Apollo Computer
Inc. invented the workstation, only to be overtaken by Sun Microsystems Inc.
Likewise, oldtimers remember that transistor and semiconductor pioneer William
Shockley nearly started his pioneering company in Massachusetts with financing
from the Raytheon Co. When Shockley and Raytheon couldn't get together, Shockley
moved to Palo Alto, Calif., where he helped plant the seeds that grew into
Silicon Valley.
In 1994, networking leader Wellfleet Communications Inc. joined Synoptics
Communications Inc. in 1994 to form Bay Networks Inc., whose center of power
steadily shifted from Wellfleet's Billerica, Mass., home to Santa Clara,
Calif. And Cascade Communications Corp.--the all-time highest flying
Massachusetts telecommunications company, which had a market valuation of
more than $6 billion at one point--is being acquired by Ascend Communications
Corp. of Alameda, Calif.
But there is some good news. In the study of telecom jobs, the report prepared
by the University of Massachusetts at Amherst for the Massachusetts
Telecommunications Council maintains that the Bay State leads the nation
in per capita concentration of employment in key aspects of telecommunications,
including Internet service and products, and hardware and software.
And Levy? He's still optimistic about the prospects of his home state. As
he told The Boston Globe: "We're still on the cutting edge of where this
industry is going."
"Many people are just not aware of how big a telecommunications capital
Massachusetts is," he said. The report noted that nearly 30,000
telecommunications jobs associated with the Internet--representing about
one-third of the 90,000 telecommunications jobs in the state--had been created
since 1993. (Next article.)
(c) 1997 CMP Media, Inc
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