Light Reading
Alcatel-Lucent is forming a global managed network services joint venture with Indian operator Reliance Communications

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
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!!
Flash Poll
LRTV Huawei Video Resource Center
Network Solutions Help the Philippines Jump Ahead

9|17|14   |   2:59   |   (0) comments


In the past, the Philippines has under-invested in technology. Now, the CEO of Softshell talks about how Huawei products help the Philippines jump ahead as the economy improves.
LRTV Huawei Video Resource Center
VCS Observation for Safer Cities in the Netherlands

9|17|14   |   5:20   |   (0) comments


Holland's VCS Observation has been operating for 22 years. Its main goal is to get cities safer. CEO Wim van Deijzen tells us some of the challenges his company faces and how Huawei is helping to overcome these challenges.
LRTV Huawei Video Resource Center
A Conversation With Serbia's Ministry of Interior

9|17|14   |   4:38   |   (0) comments


At HCC 2014, the Assistant Minister of the Ministry of Interior of the Republic of Serbia talks to us about his projects and corporation with Huawei. Solutions like Safe City and E-Government and services like cloud computing are just some of the areas his department is interested in.
LRTV Huawei Video Resource Center
IHS Analyst Discusses eLTE at CCW 2014

9|10|14   |   7:09   |   (0) comments


Thomas Lynch, associate director of critical communications at IHS Technology, talks about broadband in critical communications.
LRTV Huawei Video Resource Center
TCAA on Huawei eLTE: A Broadband Solution for Mission-Critical Communications

9|10|14   |   2:29   |   (0) comments


At CCW2014 in Singapore, the TCCA's Phil Kidner talks about the importance of broadband data for critical communications.
LRTV Custom TV
Spotlight on Cisco: SDN for Optical Networks

9|8|14   |   9:27   |   (0) comments


Cisco's Greg Nehib talks OpenFlow and more on the 'Software-Defined Networking for Optical Networks' panel at the Big Telecom Event in June 2014.
LRTV Custom TV
Cisco's Evolved Programmable Network (EPN)

9|8|14   |   4:05   |   (0) comments


A look at the various demos Cisco showed at Light Reading's Big Telecom Event highlighting Cisco's EPN innovation and how SDN and NFV technologies are enabling a variety of new services.
LRTV Huawei Video Resource Center
The Future of Ultra-Broadband, With Kevin Kelly (UBBF2014)

9|5|14   |   1:13   |   (1) comment


If you think the technological changes we've seen up to now are astounding, just wait until you see what the future has in store. Discuss upcoming breakthroughs with Kevin Kelly, Founding Executive Editor of Wired Magazine, at the Huawei Ultra-Broadband Forum on September 24.
LRTV Huawei Video Resource Center
The Inaugural Optical Innovation Forum in Nice

9|2|14   |     |   (0) comments


More than 170 attendees from network operators, service providers, analyst firms, and component companies from around the world convened in Nice in June for the inaugural Optical Innovation Forum, co-produced by Huawei and Light Reading.
Wagner’s Ring
Data Centers Drive Telcos Into the Future

8|28|14   |   2:20   |   (2) comments


Data centers are at the heart of key trends driving telecom -- network virtualization, the drive for increased agility, and the need to compete with OTT providers.
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
Upcoming Live Events!!
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
Glimpsing the Self-Driving Car
Dan Jones, Mobile Editor, 9/12/2014
AT&T to Launch WiFi Calling in 2015
Sarah Reedy, Senior Editor, 9/12/2014
AT&T: We'll Bundle Fixed Wireless & DirecTV
Mari Silbey, Independent Technology Editor, 9/15/2014
New NFV Forum Focused on Interoperability
Carol Wilson, Editor-at-large, 9/16/2014
Connecticut Cities Crowdsource Gigabit Nets
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/15/2014
Like Us on Facebook
Twitter Feed