Showing posts with label Alcatel-Lucent. Show all posts
Showing posts with label Alcatel-Lucent. Show all posts

Saturday, November 7, 2009

Intel to partner with telecom major ITI

Intel, the world's largest chip maker, is planning to participate in bids invited by Indian state-owned telecom equipment maker ITI Ltd to set up joint ventures, the Business Standard reported on Friday.

ITI intends to be a minority partner in the proposed joint ventures with a 26 per cent stake according to the bid proposals, the newspaper said.

It said Intel was interested in making the hardware and consumer premise equipment around WiMAX technology, which provides for wireless transmission of data up to 75 megabytes per second.

Though interested parties have been asked to participate before Jan 29, 2010, the telecoms ministry is holding a pre-bid conference before selecting them, the paper said.

Other global players that have showed interest include Huawei, Alcatel-Lucent, Samsung and Hitachi, the paper said.

A spokeswoman for Intel in India could not immediately respond to the report.

Agencies

Wednesday, September 30, 2009

Will $1-b BSNL outsourcing deal impact 30,000 jobs?

Bharat Sanchar Nigam (BSNL) is planning to outsource the management and maintenance of its towers and cable networks to compete more effectively with private players like Bharti Airtel and Reliance Communications, which dominate the booming industry and also unlock the value of its assets, reports the Economic Times.

The deal, which could be worth more than $1 billion (Rs. 5,000 crore) over the next five years, might receive stiff resistance from about three lakh employees as it will impact close to 30,000 jobs. "The company plans to train and redeploy a significant section of these employees to marketing roles," informed two executives requesting anonymity, as many employees are expected to be transferred to the IT firms that win the outsourcing deal.

Through this deal, BSNL will outsource more than 50,000 towers and over one lakh kilometers of optic fibre cable. "The telecom company is in process of finalizing tender conditions for inviting bids for the contract," said these executives.

"The move will help BSNL unlock the value from its towers and passive infrastructure as the once monopoly tries to play catch up with private rivals," said BK Syngal, Senior Principal, Dua Consulting.

"Successful bidders for this contract can share company's networks with private players for a fee and this could result in a revenue boost for BSNL," added Syngal, who is also a former Chairman of VSNL (now Tata Communications).

Reliance Communications had formed a joint venture with Franco American networks major Alcatel-Lucent last year and outsourced the management of its GSM and CDMA networks and infrastructure such as optic fibre cable in a deal worth $500 million over a five year period. The deal had crossed $750 million mark in July 2009.

Bharti Airtel also entered into a $500 million joint venture with Alcatel-Lucent to manage its landline and broadband business in April 2009. Around 4,000 Airtel employees were transferred to this new venture, which is a front runner to bag another $500 million contract from Airtel to manage and maintain its 80,000 kilometers intercity optic fibre cable network.

BSNL had recently postponed plans to hive off its towers and other related infrastructure into a separate company. The company felt it would be difficult to unlock value by merely hiving off its infrastructure and listing it due to falling valuations for the tower sector, said the executives.

Agencies/Economic Times

Monday, August 31, 2009

Does Huawei eye for stake in Alcatel-Lucent?

China's Huawei Technologies said on Friday it had no plans to buy a stake in Alcatel-Lucent, two days after the French-American telecoms equipment maker's stock jumped on market talk a Chinese rival could acquire it.

"Our customer-centric innovation strategy is driving Huawei's growth and that remains our strategy," Ross Gan, global head of corporate communications at Huawei told Reuters. "Huawei has no plans to take a stake in Alcatel-Lucent," he said.

Alcatel-Lucent's shares rose 16 percent on Wednesday on the market chatter and a rating upgrade by Natixis. By 0820 GMT on Friday, the stock had gained 3.1 percent in a broader market .FCHI up 1.3 percent.

A public relations official at Huawei's domestic rival, ZTE Corp, also said she had no information on any upcoming deal. "I think it is just a rumour," she said.

Huawei and ZTE have been expanding their operations aggressively in overseas markets, but those efforts are being driven mostly by organic growth. Analysts said any acquisitions would face stern regulatory scrutiny.

That scrutiny derailed an attempt by Huawei and partner Bain Capital to buy U.S.-based 3Com in 2007.

"Huawei is keen to expand internationally, so I'm not surprised that this has come up, but I would be surprised if it went ahead," said Damien Bailey, a telecoms specialist at law firm Simmons & Simmons.

"There will undoubtedly be consolidation in the telecoms equipment manufacturing sector, and I think there will probably only be three or four left, with Huawei and ZTE being two of those," he said.

Besides the regulatory concerns, any deal for Alcatel-Lucent would mark a major acquisition as the 2006 merger between France's Alcatel and U.S.-based Lucent Technologies has a current market value of about $9 billion.

For a related analysis on rival Nokia Siemens Networks

Alcatel-Lucent has been struggling to turn a profit since its 2006 merger, which was supposed to help it cut costs and better compete with Chinese gear makers including Huawei and ZTE. ($ = 6.83 yuan)

Agencies

Friday, June 19, 2009

New Revenue Models for Indian Mobile Operators

Indian mobile operators have long been concerned by disintermediation: the intrusion by third parties into the originally closed relationship between operator and customer. But in 2009, mobile phone users are expected to download from sites managed by mobile device manufacturers, consumer electronics firms, and software houses.

Making his presentation on Trends in Telecommunication Services , Chetan Kumar Shivakumar, technical manager, Alcatel-Lucent said, The global financial turmoil has added new dimension to global telecommunication trends. Smart phones explosion in 2008 and continuation is 2009 adds to on-demand information and computing. Also recent Intel acquisition of WindRiver has shows that interest in this space is hugee.

Shivakumar said although operators are unlikely to earn any direct revenue from third-party application downloads, there are several options for them to generate income from downloads, including device back up; management of application transfers; and specialized services provided to third-party stores.

So mobile operator might target areas like offering hosted services by adding presence and location sensitivity to application; Add collaboration and conferencing services to application and Hosted gaming services. Besides mobile operator can offer application and device backup service by charging application service to subscriber s phone bills or by launching their own application stores. A slippery slope here are many free application out their, pain of managing store should generate enough revenue, he said.

Operators may be also able to earn revenues from developers and consumers by wholesaling presence and location-sensitivity into services. Consumers will benefit from application stores, but should be mindful of the seemingly inexorable risk that some applications may be contaminated by viruses.

CXOtoday

Tuesday, April 14, 2009

BT likely to layoff another 10,000 jobs

British Telecom (BT) is preparing to axe another 10,000 jobs. The huge redundancy programme will be announced next month alongside a horrendous set of year-end figures that will include provisions of about £1.5 billion.

The results will mark one of the lowest points in BT’s history since it was privatized in 1984. The share price has crashed to 81 pence, valuing the telecom company at £6.3 billion. It will also seriously damage the legacy of Ben Verwaayen, BT’s former chief executive, who left eight months ago and has since become chief executive at Alcatel-Lucent .

The dividend is likely to be cut by up to 60%, while profits will be further dented by a big contribution to address a pension deficit that will exceed £8 billion. The redundancies, which result from an improvement in BT’s efficiency, are in addition to the 10,000 job cuts made last year and will be spread around BT’s 160,000 workforce. There is no guarantee that this will mark the end of job losses. Some analysts believe next month’s figure could be higher than 12,000.

Agencies

Monday, April 6, 2009

Alcatel-Lucent to outsource IT operations

French telecoms equipment maker Alcatel-Lucent is considering outsourcing its information technology globally, Les Echos newspaper reported without naming its sources.

The contract could be worth several hundred million euros annually and last seven years, the paper said.

The group has made a request for information from potential candidates for the work, and a firm decision could be made soon, the paper reported.

Alcatel-Lucent is also looking at the possibility of outsourcing some of the research and development work for its most mature equipment, the newspaper added.

Alcatel-Lucent said in a statement emailed to the media on Monday that it wanted to develop co-sourcing partnerships, as announced in December, but that no deals had been reached at this stage.

Sunday, February 15, 2009

Alcatel to cut 1,000 manager jobs

Franco-American telecoms gear maker Alcatel-Lucent said it plans to cut 1,000 managerial posts from its global workforce will see 198 positions in France eliminated.

Alcatel-Lucent managers in France told a works council meeting on Wednesday that 450 managerial posts would go in North America and 450 in Europe, of which 198 in France, the CFDT union said in a statement.

The company announced the decision to trim its executive ranks on Dec. 12 as part of a strategic plan aimed at cutting cut costs by 750 million euros by the fourth quarter of 2009, but did not say where the cuts would fall.

An Alcatel-Lucent spokeswoman said: "I can confirm the figures for France, but we are not making a statement on the other numbers."

According to the CFDT, 1,602 posts are classed as managerial in France, and while France makes up 10 percent of Alcatel-Lucent's workforce, it will bear 20 percent of the job cuts.

Alcatel-Lucent, the No. 3 player worldwide in terms of market share, behind Sweden's Ericsson (ERICb.ST) and Finnish-German joint venture Nokia Siemens Networks [NSN.UL], employs 77,000 worldwide and 11,000 in France.

The company, formed by the merger of Alcatel and Lucent in 2006, saw its share price fall 70 percent in 2008 after a string of profit warnings and last week posted a 5.2 billion euro loss for the year amid a record 4.7 billion euros in depreciations.

Since June, its share price has dropped more than 70 per cent.

Agencies

Tuesday, December 16, 2008

Is Alcatel-Lucent all set to hire 1000 in India?

Even after announcing 1,000 job cuts globally, Alcatel-Lucent is bullish on the Indian telecom market and plans to hire about 1,000 people by next year.

"The job cut was announced at a global level and we have not been told of any job losses in India (operations). We have about 70,000 employees globally and 1,000 jobs being cut are less than the attrition that one sees.

However, I would like to hire another 500-1,000 people in the next one year for India operations," Alcatel-Lucent India President Vivek Mohan told the media.

The company had recently announced its plans to reduce the number of managers by about 1,000 and the number of contractors by another 5,000 as a part of its restructuring initiatives.

The company is in discussion with other firms for deployment of low-cost WiMax devices in the country.

Source: Agencies

Friday, December 12, 2008

Alcatel-Lucent to cut 1,000 jobs; To reduce 5,000 contractors

Telecom major Alcatel-Lucent will cut 1,000 managerial posts and remove 5,000 contractors as part of its costs-saving initiatives.

"The company expects to reduce the number of managers by approximately 1,000 and the number of contractors by approximately 5,000," it said in a statement today.

"It will also complete its existing restructuring initiatives as well as seek savings in real estate, support functions and discretionary spending".

The firm would initiate a set of strong actions designed to reduce its break-even point by one billion euro per year in both 2009 and 2010, according to the statement.

Further, Alcatel-Lucent would be consolidating its global R&D centres. "Other actions will be taken to have a more agile R&D, such as further simplifying the Carrier Product Group from 6 to 4 divisions," the statement added.

As part of its strategic transformation, the telecom major would be focusing on service providers and enterprises markets, among others.

"We want to stimulate a sustainable business model for the industry that will fuel innovation and the capital investment required to expand the overall web experience to more people and businesses," Alcatel-Lucent CEO Ben Verwaayen said.

For the full year 2009, the firm anticipates the market for telecommunications equipment and related deployment services to be down between 8 to 12 per cent at constant exchange rate.

Source: Agencies

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