Alcatel-Lucent Is At Turning Point with New Deals in United States and China

By Ed Silverstein, TMCnet Contributor

Alcatel Lucent (News - Alert) says it has reached a “turning point” after clinching $5.7 billion in deals to build high-speed wireless networks and supply other gear for the biggest mobile operators in the United States and China, according to The New York Times.

Alcatel-Lucent (News - Alert) has reached agreements with China Mobile, China Telecom and China Unicom to provide network and application solutions, and integration and maintenance services. In addition, the company has reached a major agreement with Verizon (News - Alert) Wireless.

As one of the critical commercial cooperation agreements between China and France, the agreements with the Chinese companies will be signed on November 5th in Paris, during the visit of Hu Jintao, President of the People's Republic of China, and witnessed by the key government officials of the two countries.  

Alcatel-Lucent, based in Paris, announced the contracts at the same time it reported its first profitable quarter of the year, posting €25 million, or US$35.3 million, in earnings compared to a €182 million loss in the third quarter a year earlier.

“China is a booming market and we value our role in helping bring the power of IP and broadband to the hands of its people wherever they are – on the road, at the home and in the office,” said Ben Verwaayen (News - Alert), chief executive officer of Alcatel-Lucent.

The new Chinese agreements build on Alcatel-Lucent’s position as strategic partner of China Mobile, China Telecom and China Unicom. They also leverage the group’s presence in China since 1984 through its flagship company Alcatel-Lucent Shanghai Bell.

Verwaayen told The New York Times, “I think this is a significant turning point in the transformation of the company. We are experiencing good demand for our products.”

Verwaayen added that “a large chunk” of the sales to the Chinese carriers was new business, with the rest being a reaffirmation of existing sales arrangements.

In addition, an agreement with Verizon was new business for his company, Verwaayen said.

The agreement with Verizon Wireless (News - Alert) will generate $4 billion in sales over four years, Alcatel Lucent said. Under the deal, Alcatel Lucent will upgrade the Verizon’s third-generation wireless network and build a faster network based on Long Term Evolution.

Verwaayen described the agreements with Verizon Wireless and the three biggest mobile carriers in China as “massive” for the company, according to The Times.

(source: http://next-generation-communications.tmcnet.com/topics/nextgen-voice/articles/115294-alcatel-lucent-at-turning-point-with-new-deals.htm)