Struggling Alcatel-Lucent to handle AT&T's 3G expansion
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Quickly following up the announcement by AT&T earlier this month that it would be expanding its 3G network by 80 cities to nearly 350 US Markets, Alcatel-Lucent announced today that it will be in charge of supplying it.
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VALENCIA, Spain, June 1  /PRNewswire-FirstCall/ -- Vodafone and Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced a cooperation agreement to deliver the award-winning America's Cup Live Sailing service developed by Alcatel-Lucent in Vodafone's mobile portal.
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(InfoWorld) - Alcatel-Lucent cut its revenue forecast for the year on Thursday, underscoring the challenges the newly merged company faces in a highly competitive communications equipment industry. The company now expects its revenue to be flat or up slightly in 2007, compared with an earlier forecast that it would grow in the mid-single digits along with the overall carrier market. (Both estimates use a constant exchange rate between the euro and U.S. dollar.) In its new forecast, Alcatel-Lucent cited discussions with wireless customers in North America that led it to anticipate weaker spending than it had expected among them this year. Growth in sales volume won't make up for falling prices, Alcatel-Lucent said. As a result, the company expects only to break even in the current quarter. In the second quarter, which ended June 30, it reported an adjusted net loss of â¬336 million, or $455 million as of June 30, the last day in the period being reported. France'sÂ Alcatel bought troubled U.S. infrastructure vendor Lucent last yearÂ as the companies faced Asian competitors, such as Huawei Technologies, as well as consolidation among telecommunications carriers and vendors. It cut 3,800 jobs in the first half of the year and still expects to reach a target of â¬600 million in pre-tax savings from the merger this year, butÂ the merger hasn't led to strong results. The market has lashed out: Alcatel-Lucent's shares (ALA) on the New York Stock Exchange started this year over $15 and are now below $10. On Thursday's news, the stock fell $0.88 to close at $9.16. The company is taking steps to speed up its post-merger restructuring and carry out additional focused cost-cutting plans, CEO Patricia Russo said in a prepared statement on Thursday. Alcatel-Lucent does expect some improvement from quarter to quarter. It forecast third-quarter revenue up slightly from the second quarter and a strong increase in the last quarter of the year. Bright spots in its worldwide business include the wireline and enterprise network business, as well as sales in the Asia-Pacific region.
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(InfoWorld) - Alcatel SA and Lucent Technologies Inc.'s plan to form a global communications equipment giant may run into a roadblock next week in a state court in New Jersey. The companies face a showdown Sept. 6 with shareholders who want to postpone Lucent's Sept. 7 shareholder meeting on the merger as they pursue lawsuits to block it. The Superior Court of New Jersey in Union County is set to hear arguments that day on whether to grant an injunction sought in a proposed class-action suit, Resnick vs. Lucent Technologies Inc. On Thursday, the plaintiffs in another suit, filed in New York, agreed to join in on that hearing. Alcatel and Lucent announced in April that they had agreed to merge into a single company, based in Paris, that would have about US$25 billion in annual revenue. Lucent has struggled in the wake of the post-2000 telecom crash, and the deal is also seen as an outgrowth of consolidation among the carriers that buy from big equipment companies such as Alcatel and Lucent. But the merger, now heading for votes by shareholders in both companies, has been criticized and still faces some hurdles. The stocks of both companies have fallen since the deal was announced, and some investment firms have spoken out against the merger. The European Commission and the U.S. Federal Trade Commission have both approved the deal, but it still needs approval from the Committee on Foreign Investment in the United States. Both companies have scheduled shareholder meetings on Sept. 7 to vote on the deal. In May, the Asa R. Maley Trust sued Lucent and several of its executives in U.S. District Court for the Southern District of New York, alleging they made a deal that would benefit executives and hurt shareholders. The plaintiffs sought class-action status. "In essence, the proposed Acquisition is the product of a hopelessly flawed process that was designed to ensure the sale of Lucent to one buyer, on terms preferential to Alcatel and to subvert the interests of plaintiff and the other public stockholders of Lucent," the plaintiffs said in their complaint. On Thursday, the attorneys in the Maley case agreed to serve as co-counsel for the plaintiffs in the similar Resnick case and will submit their papers for the Sept. 6 hearing in New Jersey. Lucent is based in Murray Hill, New Jersey. In a U.S. Securities and Exchange Commission filing on Tuesday, Lucent said the Resnick suit was without merit and it has substantial defenses to the claims. In a response to the Maley case earlier this month, the company told the New York court that the Maley case should be dismissed.
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By Victoria Shannon  A cloud of uncertainty among the world's phone companies left Alcatel-Lucent with a heavy net loss Friday in its first quarterly report as the world's largest telecommunications equipment maker, and the company moved to eliminate thousands more jobs.
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Alcatel has reached a preliminary agreement to buy Nortel Network's 3G (third-generation) mobile phone network business for $320 million.ADVERTISEMENTMAKE SOA REAL WITH IBM WEBSPHERE PODCASTStreamline processes and maximize efficiency within a proven service oriented architecture. Take back control of your business processes with IBM WebSphere.
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(InfoWorld) - Alcatel has reached a preliminary agreement to buy Nortel Network's 3G (third-generation) mobile phone network business for $320 million. Under terms of the proposed deal, Alcatel will acquire Nortel's UMTS (Universal Mobile Telecommunications Business) radio access business, including 14 Nortel customer contracts, the companies announced Friday. UMTS is a 3G telecoms standard used in Europe based on W-CDMA (Wideband Code Division Multiple Access). The deal would make Alcatel one of the biggest suppliers of UMTS gear worldwide, giving it contracts with one in four UMTS operators, it said. The companies have signed a nonbinding agreement to merge and hope to close the deal by the end of the year. Closing the merger depends on arriving at a final acquisition agreement, negotiations with works councils, and securing regulatory and other approvals, they said. A "significant majority" of Nortel's employees in the UMTS division would be transferred to Alcatel, the companies said.. The deal appears not to affect Alcatel'sÂ proposed merger with Lucent, announced in April. That deal is due to be voted on by shareholders of both companies on Sept. 7, although some Lucent shareholders opposed the deal and are trying toÂ block the vote in court. Alcatel said it would involve Lucent in the integration of the UMTS business. The sale by Nortel continues aÂ restructuring plan at the companyÂ that has included 1,900 job cuts over the next year. The Canadian company said in a statement its UMTS access business "lacks the scale and momentum needed to become profitable." Nortel said it will continue to develop GSM (Global System for Mobile Communications) and other mobile technologies, as the company focuses on emerging 4G mobile video and multimedia services. Alcatel sees the acquisition as a way to build on an expanding UMTS market and increase it technology portfolio for major operators such as Orange and Vodafone.
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Some smartphone AT&T subscribers have been experiencing difficulty accessing the company's 3G and EDGE data services since 6:30 a.m. EST.
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By LAURENCE FROST  PARIS - Alcatel's purchase of U.S. rival Lucent Technologies Inc.
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Freshly merged Alcatel-Lucent is stepping up job cuts to 12,500 after lurching into a fourth-quarter loss and forecast a first-quarter sales dip as tough trading and uncertainties from the tie-up take their toll.
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Shares in telecommunications equipment maker Alcatel-Lucent SA fell Thursday to their lowest level after the company slashed its forecast for full-year revenue growth in its third profit warning since the start of the year
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AT&amp;T, AT&amp;T Wireless, and Cingular Wireless resolved issues relating to the use of the AT&amp;T brand in connection with Cingular&#39;s acquisition of AT&amp;T Wireless.
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Alcatel-Lucent, the Franco-American telecommunications equipment maker, posted a loss Friday of about $3.8 billion for the fourth quarter, said it would scrap its 2007 dividend and predicted a rocky 2008.
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NEW YORK, September 17  - Alcatel (ALA.NYS) has expanded its operations and presence in the core North American telecommunication market with two separate acquisitions for about $277 million.
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Alcatel shares  fell as much as  6.3 percent on Tuesday after U.S. merger partner Lucent  Technologies  warned fiscal third-quarter earnings would  be hit by weak wireless sales in North America.
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Cingular, the largest mobile operator in the US, has signed Ericsson, Lucent and Siemens to build a 3G network. Beginning next year the telco will build networks in &quot;a number of major urban and suburban markets&quot;.
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The deal follows Alcatel&#039;s April plan to acquire Lucent  Technologies Inc. to create the world&#039;s top telecoms gear maker  by annual sales, and comes years after Wall Street analysts  have called for mergers in the crowed sector.