& cplSiteName &

AlcaLu, Reliance Form Joint Venture

Ray Le Maistre
5/12/2008
50%
50%

Alcatel-Lucent (NYSE: ALU) is forming a joint venture (JV) with Reliance Communications Ltd. (RCom) to provide managed network services to fixed and mobile operators and large enterprises in India and, eventually, worldwide, targeting a market the new partners believe is worth $16 billion a year.

AlcaLu will own 67 percent and Reliance 33 percent of the new entity, which does not yet have an official name. [Ed note: Relucatel?]

AlcaLu, which will control and fully consolidate the new venture, expects to release details about the management structure of the venture in the coming week. The new company will have 1,000 staff at its inception, rising to between 2,000 and 2,500 within the first 12 to 18 months, according to a spokesman for the vendor giant. AlcaLu has 24,000 staff in its Services group globally.

The new venture's first deal is a five-year contract to run Reliance's GSM and CDMA networks in India. It is estimated that the deal will be worth $500 million in revenue to AlcaLu over the course of the contract.

Reliance is India's second largest mobile operator, with 45.8 million wireless -- mostly CDMA -- customers. It also runs a fixed line network, offering Ethernet-over-fiber services to enterprise customers, and is set to offer IPTV services using technology from AlcaLu partner Microsoft Corp. (Nasdaq: MSFT). (See Reliance Profits Rise 47%, India Crosses 10M Mobile Adds in March, India's Hot for Ethernet, A Guide to India's Telecom Operators, and Microsoft Seals $500M IPTV Deal.)

Although no other projects have been defined, further work from the Indian operator's international unit, Global Cloud Xchange , appears to be in the pipeline: "The joint venture will support the expansion and growth of Reliance Communications, within and outside India," noted the new partners in their official statement announcing the venture.

Reliance Globalcom comprises Ethernet services player Yipes Enterprise Services Inc. and global subsea network operator FLAG Telecom Ltd. . The ambitious carrier has also recently expanded into Africa, where it plans to invest $500 million building a new IP-based network. (See Reliance Integrates Global Services and Reliance Makes African Acquisition.)

AlcaLu, meanwhile, is one of a group of equipment vendors, including Ericsson AB (Nasdaq: ERIC), ECI Telecom Ltd. , Huawei Technologies Co. Ltd. , Nokia Networks , and Nortel Networks Ltd. , chasing managed and hosted services deals from carriers worldwide in a bid to boost recurring revenues and profits. (See Huawei Wins at Mobily, NSN Wins in Indonesia, Nortel, Tandberg Team on Telepresence, AlcaLu: The Network Integrator, ECI Announces Reorganization, DT Outsources to NSN, Orange Outsources, Ericsson Manages DT Network, and AlcaLu Answers Outsourcing Critics.)

AlcaLu, which recently formed a 4G wireless joint venture with NEC Corp. (Tokyo: 6701), has just announced another quarterly loss and is believed to be looking for a successor to its current CEO, Pat Russo. (See AlcaLu Posts Loss, Warns on Full Year, Is AlcaLu Seeking a New CEO?, AlcaLu's Next CEO?, and AlcaLu, NEC Team for 4G.)

The vendor's share price was up $0.10 (1.44%) to $7.06 in early afternoon trading on the New York Stock Exchange (NYSE) Monday.

— Ray Le Maistre, International News Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
heritagejd
50%
50%
heritagejd,
User Rank: Light Beer
12/5/2012 | 3:40:59 PM
re: AlcaLu, Reliance Form Joint Venture
It will be interesting to see how they try to compete with at&t, they have a lot of fibre to a lot of countries, including India and Africa!!
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, September 14, 1:00PM EDT
What Is Agile?
Kent J. McDonald, Product Owner, Agile Alliance
UPCOMING COURSE SCHEDULE
Friday, September 16, 1:00PM EDT
How to Implement Agile
,
Wednesday, September 21, 1:00PM EDT
What Is DevOps?
Colin Kincaid, CTO, Service Provider, Cisco
Friday, September 23, 1:00PM EDT
How to Implement DevOps
,
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
F5 Virtual Network Function Integrations With Partner Orchestration Platform

8|24|16   |   6:38   |   (0) comments


F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
Between the CEOs
CEO Chat: Intel's Alexis Black Bjorlin

8|17|16   |   06:23   |   (0) comments


Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Telecom Innovators Video Showcase
Accelerating Telecom Digital Transformation With Nominum DNS

8|1|16   |   12:04   |   (0) comments


Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (1) comment


As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments


Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments


VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments


Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (2) comments


In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
LRTV Custom TV
NFV in 2016: Part 2 – Climbing the Virtualization Maturity Curve

7|19|16   |   06:56   |   (0) comments


Many of the initial use case implementations are single-vendor and self-contained. The industry is still climbing the virtualization maturity curve, needing further clarity and stability in the NFV infrastructure (NFVi) and greater availability and choice of virtualized network functions (VNFs). Interoperability between NFVis and VNFs from different vendors ...
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Five of the Top 10 most targeted countries in Check Point Software Technologies' global Malware & Threat Index for Q1 2016 are in Africa.
Hot Topics
Cisco Developing 'Monica' Digital Assistant
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/22/2016
Cisco Throws 5,500 Overboard on Cruise to Richer Waters
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/17/2016
VoLTE Can Drive 4G Small Cells Adoption
Ravi Narayanan, Senior Analyst – Cloud & Next Generation Mobile Networks, Heavy Reading, 8/18/2016
Slow Roll Builds for DOCSIS 3.1
Mari Silbey, Senior Editor, Cable/Video, 8/17/2016
Rocket Fiber Lights Up Detroit With Gigabit
Elizabeth Miller Coyne, Managing Editor, 8/22/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
Animals with Phones
Live Digital Audio

Bridging the tech skills gap is a major challenge for service providers and suppliers alike today – and the challenge is two-fold when it comes to increasing the number of women in the comms space. Level 3 Communications has made it a priority to overcome both challenges by implementing several unique programs focused on building the right candidates from within – in addition to filling the funnel by supporting STEM and other education programs. During this radio show, you’ll learn about these programs from Mary Beth McGrath, SVP of Global Talent Management at Level 3, and the best ways to bridge your own skills gap so that you are motivated and equipped for change. Plus you’ll have the chance to ask Mary Beth your questions live on the air.