Lucent Parties at CeBIT

HANOVER, Germany -- CeBIT 2004 -- Lucent Technologies Inc. (NYSE: LU) swept into the CeBIT tradeshow today with a raft of announcements about new contracts in Europe worth €250 million (about US$305 million) (see Lucent Wins $300M in Euro Deals).

The deals are a mixed bag of extensions, upgrades, pilots, and peripheral agreements, and there are some interesting VOIP and triple-play service developments, especially with Deutsche Telekom AG (NYSE: DT) and Spain's Telefònica SA (see T-Com Picks Lucent for VOIP Trial and Lucent Scores With Telefónica).

Although the vendor boasted of an increasing market share in Europe as a result of the deals, Lucent's European president David Poticny couldn't say just how much that share is, or by how much it's increased.

Poticny also couldn't say how much the new deals might add to the current financial year, though he noted that most of the contracts are for either one or two years.

Poticny was joined on the podium by CEO Pat Russo, who stressed the importance and value of the European market to Lucent. The vendor's 2003 revenues in Europe, the Middle East, and Africa were $1.24 billion from a global total of $8.5 billion. In total, the European carrier network equipment market was worth $54 billion in 2003.

Russo also proclaimed that Lucent's restructuring process was complete and that the focus is now on "growth." She wouldn't commit to any headcount increase but asserted that any growth would be organic. Acquisitions are not part of the growth strategy, though small takeovers where "it makes sense to help deliver networks to our customers" could not be ruled out.

The highlights of today's press release splurge are:

  • Involvement in Deutsche Telekom's VOIP test network in partnership with IBM Corp. (NYSE: IBM). The German carrier is using Lucent VOIP gateways in a converged services pilot that will put services such as multimedia messaging, IP Centrex, and IP voice private networks through their paces.

    Lucent is also upgrading the German carrier's optical transport network in what appears to be the most lucrative of the European contracts, with a potential value of "a few hundreds of millions of dollars."

  • Deals in the emerging Central and Eastern European markets. Lucent is involved in a voice network upgrade at Moscow City Telephone Network (MGTS), a deal worth $3.5 million, and has extended its broadband access equipment deal with Telekomunikacja Polska SA, which is using Stinger xDSL access concentrators to expand its broadband coverage in Poland.

  • Lucent is working with Telefònica on its triple-play broadband services strategy. It is supplying its Stinger FS+ DSL access concentrator, which has IP multicasting capabilities for the delivery of broadcast services. Telefònica is planning to roll out video-on-demand and broadcast services to its DSL subscribers in Spain's major cities.

    Lucent is also supplying its LambdaUnite Multiservice Switch for Telefònica's optical network upgrade.

  • Lucent announced a voice network software and services deal with KPN Telecom NV (NYSE: KPN) and an OSS deal with Italian operator Blow– sorry, Wind Telecomunicazioni SpA.
What Lucent didn't do today, however, was unveil any details about its new multiservice edge switch, the CBX 3500 (see Lucent's WaveSmith Killer). That's due to premier at this summer's SuperComm show in Chicago.

— Ray Le Maistre, International Editor, Boardwatch

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Hey, I understand this guy met the donkey on rolostar!!

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