Another potential acquisition target--in keeping with NSN’s pattern of picking companies whose names start with “A”--is its current partner, Adva Optical Networking, which supplies NSN with metro optical gear.

“Not having in-house metro WDM is, we believe, a key strategic hole, given the growth in sales in that segment,” said Dana Cooperson, vice president of network infrastructure for Ovum-RHK. “The partnership with Adva's worked very well for both companies, but if NSN really wants to play in [optical networking] long term, they need more direct control.”

Adva has also been through a rough patch lately, losing Alcatel-Lucent as a contributing partner and lowering its revenue expectations for the fourth quarter.

Another partner NSN might consider bringing in-house is Stratalight, a vendor of optical subsystems whose 40-Gb/s gear has been deployed by MCI and Sprint, both in connection with Cisco Systems’ CRS-1 core router.

“Working with Stratalight, NSN is leading 40G deployments,” Cooperson said, conceding that such vertical integration might be a departure from NSN’s strategy of increased outsourcing and offshoring.

NSN might also consider optical vendors with traction in emerging markets, where it has lost ground to Huawei Technologies, she said. In addition, purchases in IMS, IPTV and video distribution might help NSN fill out its broadband access and IMS core offerings. “End-to-end solutions are becoming more critical, so locking these up…could be pretty important to them,” she said.

NSN already has fiber and broadband access products but could make acquisitions in adjacent markets such as intelligent home gateways, for instance, said Kamalini Ganguly, another Ovum analyst. “How about Actiontec as an entry into Verizon and North America?” she said. “It starts with an A.”