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AlcaLu: Pressure Is Still On

BERLIN – Broadband World Forum Europe – The pricing pressure that's been squeezing margins at Alcatel-Lucent (NYSE: ALU) is still going on, though not intensifying, according to one of the vendor's senior executives, Michel Rahier.

Speaking in Berlin at the launch of the company's META (Mobile Evolution Transport Architecture), Rahier, who heads up AlcaLu's carrier and wireline business, said the pricing pressures identified by the company's CEO Pat Russo earlier this year had been harder than expected. (See AlcaLu's Russo: We're Under Attack!) "I wouldn't say there is any relief on the pricing pressures, but there's no more pressure than we had before," stated Rahier.

"When we were merging, competitors were trying to destabilize us. This always happens. Competitors were attacking us big time. It usually lasts about four to six weeks, but it lasted longer. And we retaliated -- there were opportunities for us too to grow our footprint, for example, in China."

Rahier declined to comment on any potential layoffs associated with the additional cost-cutting the vendor is planning. He repeated previous statements that details will be made available during the firm's earnings conference call on October 31. (See Tough Month Ahead for AlcaLu's Russo.)

He did, though, suggest that the new META offering for wireless carriers should start generating revenues in the very near future. (See AlcaLu Targets Wireless Backhaul.)

Revenues would be generated "in the next coming quarters, with relatively small amounts at first. This is not future music for 2009 -- this is something that is happening now."

The first of the three product platforms that make up the META (the 1850 Transport Service Switch-5) will be commercially available in December 2007.

Rahier also unveiled the Base Station Router (BSR) Femto, which has been developed with French firm Sagem Télécommunications SA . (See AlcaLu Goes Femto.)

The AlcaLu man said this product, which will be available some time in the first half of 2008, combines a home gateway with an ONT (optical network terminal) and a femtocell (a micro 3G base station for the home or office), and elements of a set-top box may also be integrated in the future.

— Ray Le Maistre, International News Editor, Light Reading

gocowboys 12/5/2012 | 3:00:54 PM
re: AlcaLu: Pressure Is Still On Ok, am I the only one that thinks this is weak?

First, they announce two products that are directly competitive (1850TSS-5, 7705 SAR). Go look at the features/functions and they are positioned right on top of each other. This looks like divisional fighting.

Second, the 1850TSS has not done anything in North America. Didn't it win a Light Reading award about 3 years ago? Hmmmmmmm.

Finally, the street price for a SIAD is well under $5,000 these days (more like $1,000 to $2,000). That is going to be a lot of boxes to make any difference.

Mo' non-sense!
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