Navigating Tariff Changes Together

Dear Valued Customer and Partners,

We want to share an important update regarding recent developments in U.S. trade policy and how they may affect our industry—and, by extension, our work together.

The evolving tariff environment continues to present challenges for manufacturers like Tellabs. With ongoing changes in federal trade regulations, uncertainty has become a constant. While these tariffs impact a wide range of imported products, we remain focused on minimizing disruption to your business and maintaining the high standards of service and value you expect from us.

At Tellabs, we believe in transparency, fairness, and a shared commitment to navigating change together. While we cannot fully absorb the rising costs associated with these new tariffs, we are choosing a path that preserves the value of our core offerings without altering our product list prices or service and support fees. Beginning July 1, 2025, we will introduce a tariff surcharge—calculated based on applicable rates at the time of quoting. This surcharge will be:

• Clearly itemized on all quotes starting July 1, 2025
• Reviewed and updated quarterly based on changes in tariff rates
• Adjusted only if government-mandated tariffs change significantly beyond an acceptable +/- range, which will be shared as part of our quarterly updates

In the spirit of partnership, we are offering customers the opportunity to purchase from our limited pre-tariff inventory at current pricing. Tellabs Optical LAN and Tellabs 1000 products ordered and shipped by June 30, 2025 will not incur a surcharge, while supplies last. Third party products such as Infinera 7100, remote powering, layer 1, and Wi-Fi may have varying policies dependent on original equipment manufacturer policies.

Behind the scenes, we are taking proactive steps to adapt. This includes reassessing our supply chain, exploring alternate sourcing options, and evaluating manufacturing strategies—including potential U.S.-based solutions—to reduce tariff exposure while staying competitive. These efforts reflect our long-term commitment to both our customers and the broader U.S. manufacturing ecosystem.

What won’t change is our dedication to delivering reliable, high-quality networking solutions with the support and responsiveness you count on. While the road ahead may be uncertain, you can count on Tellabs to remain steady, open, and responsive.

If you have any questions or would like to discuss your upcoming projects or purchase plans, please contact your Tellabs sales representative. We’re here to help you plan effectively and make informed decisions.

Thank you for your continued trust and partnership. We look forward to moving forward—together.

With appreciation,
The Tellabs Team