Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management

    Lucent Pursues French Connection

    By
    eWEEK EDITORS
    -
    May 28, 2001
    Share
    Facebook
    Twitter
    Linkedin

      Lucent Technologies last week landed a DSL deal with the only regional Bell that Alcatel had failed to win, and that could make the courtship of the two equipment behemoths just sweet enough to make a marriage.

      The two companies were intensifying talks during the weekend, with predictions that a deal could be done by this week. If the talks succeed, observers said, Alcatel may acquire Lucent in a stock deal worth roughly $34 billion — Lucents current valuation.

      An Alcatel-Lucent merger could push Nortel Networks to seek a merger with Ericsson or another European vendor, so it could match the strength of reaching both the North American and global markets in dozens of spaces, said Blaik Kirby, vice president at Boston consultancy Adventis.

      A merger would “help Lucent sell equipment in the rest of the world, and give Alcatel a deeper U.S. portfolio,” Kirby said.

      An Alcatel-Lucent deal could spark other mergers, too, said Deb Mielke, principal at research firm Treillage Network Strategies.

      There are plenty of reasons Alcatel would balk at acquiring Lucent and its mountains of debt and inventory. But Alcatel pines for three things from the former Bell Labs: Lucents U.S. customer base and its optical technology are two. The third is a DSL deal with Qwest Communications International, the only former regional Bell that hasnt announced a deal with the Paris vendor.

      Last week, Lucent said it will be the major vendor as Qwest, which acquired U S West last year, steps up its DSL deployment in 11 states. Qwest plans to install DSL in an additional 2.5 million homes and small businesses by the end of next year.

      Troubled Lucent has announced other wins this month: a deal with Global Crossing for wavelength routing and a deal with China Unicom for wireless technologies.

      While Alcatel is the strongest global DSL player and has relationships with the Bells in that technology, Lucent is a much bigger supplier of legacy switches and optical technology to the former monopolies.

      “There could be some good synergies in the North American customer base, but I have my doubts,” said Brian Van Steen, an analyst at RHK. “Whenever large companies merge, there are a lot of issues that need to be overcome — a lot of deal-breakers.”

      Lucent may sell off some divisions to reduce its debt before Alcatel commits, Van Steen speculated. If the merger happens, carriers will have one less major vendor, and that will “leave possible inroads for some of the smaller guys,” he said.

      The combined company could be classified as an international firm, which means some portfolio managers would drop it from their lists. As a spin-off of AT&T, Lucent is one of the most common U.S. mutual fund stocks, even though its down 85 percent from its 52-week high. “On the other hand, a lot of Lucent stockholders will be glad to get Alcatel,” Treillages Mielke said.

      eWEEK EDITORS
      eWeek editors publish top thought leaders and leading experts in emerging technology across a wide variety of Enterprise B2B sectors. Our focus is providing actionable information for today’s technology decision makers.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×