Bell Canada Buys Alcatel Gear

Alcatel SA (NYSE: ALA; Paris: CGEP:PA) said Wednesday that it has renewed a four-year agreement to provide DSL gear to Bell Canada (NYSE/Toronto: BCE). The $400 million deal will include deployment of Alcatel's DSLAM, the 7300 Advanced Services Access Manager.

DSL equipment sales continue to be a bright spot for Alcatel, which lost $4.2 billion in 2001 and has cut thousands of jobs in recent months. Its Bell Canada deal shows that, though service providers the world over are slowing their investments in new networks, they recognize it's still worth their money to satisfy the demand for broadband.

Alcatel says that Bell Canada will be able to reach up to 85 percent of its customers in Canada by year's end. Bell Canada says it had 591,000 DSL subscribers at the end of 2001, a 124 percent increase over the previous year. The carrier added more than 130,000 of those high-speed users in the fourth quarter.

Jim White, VP of marketing for Alcatel's broadband networking division, says fierce competition from cable operators helps contribute to DSL's success outside of the U.S. Another big factor he points to is that non-U.S. incumbent operators don't have to be so nurturing to their wireline competitors (see Tauzin-Dingell Takes Another Step).

"Regulators [outside the U.S.] don't require incumbent providers and their competitors to offer competing services over the same copper pair," he says. "The incumbents are more likely to invest in building out DSL networks when they know they're not going to lose control of those networks."

Alcatel held a 41 percent share of the global DSL equipment market in 2001, according to new data from RHK Inc. Next in line were Siemens AG (NYSE: SI; Frankfurt: SIE) and Lucent Technologies Inc. (NYSE: LU) with 13 percent and 10 percent, respectively. (RHK defines the category as any network systems that support the major types of high-speed data over copper lines, including ADSL, SHDSL, and VDSL.) In that same report, RHK points out that 66 percent of the DSL ports shipped last year went to Europe and Asia (see RHK Looks at DSL).

"[Bell Canada] is the only provider delivering coverage for broadband over copper in their whole marketplace," says White. "They've invested heavily in their network, and they've been able to accomplish something that hasn't been accomplished in the U.S.: They're making DSL available to a high percentage of people."

— Phil Harvey, Senior Editor, Light Reading
edgecore 12/4/2012 | 10:47:56 PM
re: Bell Canada Buys Alcatel Gear This question is not about Bell Canada, nor Alcatel, but I wasn't too sure where to post it, so LR feel free to move it where you see fit!


As of this week, which Service Providers are in bankruptcy protection, or have closed down? Which ones are really suffering and are predicted to enter bankruptcy protection in the near future!

PSI, Global, Williams.....

Just haven't been able to keep up, can someone have a go at a list of them?


Pauline Rigby 12/4/2012 | 10:47:53 PM
re: Bell Canada Buys Alcatel Gear Here's a fairly recent list that I found on the Web:

Major Service Provider Bankruptcies

360networks, Ebone/GTS, Global Crossing, Storm Telecommunications, Enron Broadband

Covad Communications, NorthPoint, Rhythms NetConnections, Network Plus, Mpower, Convergent Communications, Broadband Office, e.spire, McLeodUSA

OmniSky, Metricom/Ricochet, Teligent, WinStar, globalStar, Iridium

PSINet, Ardent Communications, [email protected], iBeam, NetRail, colo.com, Exodus

[email protected]
spanishguy 12/4/2012 | 10:47:52 PM
re: Bell Canada Buys Alcatel Gear Pauline Rigby wrote

360networks, Ebone/GTS, Global Crossing, Storm Telecommunications, Enron Broadband

My follow up ...
Ebone -> acquired by KPN-Qwest
+ iaxis -> the first to fail, back in 2000

Edge0fSpace 12/4/2012 | 10:47:52 PM
re: Bell Canada Buys Alcatel Gear I believe Netrail was purchased by 360 prior to their going under.

edgecore 12/4/2012 | 10:47:35 PM
re: Bell Canada Buys Alcatel Gear Thanks all

edgecore 12/4/2012 | 10:47:27 PM
re: Bell Canada Buys Alcatel Gear
What about Williams Communications?


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