Lucent and Alcatel merger talks

IDG news exclusively for newspaper companies telecommunications equipment maker Lucent and Alcatel said in a brief statement recently said, as more and more harsh competitive environment, the two companies are exploring the possibility of merger.

Statement wrote: "We can confirm that Lucent and Alcatel are discussing the possibility of the merger on the other, the merger plan according to the market determine the price." The statement also mentioned that does not necessarily guarantee that the two companies reached an agreement.

The statement said: "In the agreement or termination of the discussion, we will not comment further."

If the merger of Alcatel and Lucent, will contribute to the defeat Huawei, ZTE and other competitors. Gartner analyst, said Bertrand Bidaud, Huawei, ZTE and other device manufacturers are looking for from some of the old telecom equipment manufacturer to win market share. He said: "These companies are where the market is not growing, more competitive."

Bidaud said that Lucent and Alcatel merger is significant because the two sides of the customer base there is not much overlap. Moreover, Lucent is very strong in North America, Alcatel in Europe, Asia and other regions more competitive advantage. He said: "In this regard, the two companies merged in the strategic fit."

Current Analysis analyst John Marcus said in the past two or three years, Lucent has been trying to win more business in Europe, "but Lucent, Alcatel and Siemens have been unable to open the gap site."

Marcus said the merger of Alcatel and Lucent might also produce a strong services business, which was the focus of the two companies recently. Lucent in Europe, 30% of revenue comes from professional and managed services available. Alcatel's services business revenue was slightly higher, and its services to focus on IP network transformation, which is Lucent's maintenance and support services play a very useful role.






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