AlcaLu Tops $1B in IP Gear Sales
In 2003, Alcatel wasn’t a player in IP. Then, it acquired TiMetra. Now, it has just reported annual IP router sales of more than $1 billion -- according to CEO Pat Russo on today’s earnings conference call -- and is the market’s No. 2 player (with market share around the low-to-mid 20s), behind Cisco Systems Inc. (Nasdaq: CSCO) and ahead of Juniper Networks Inc. (NYSE: JNPR). (See AlcaLu No. 2 in IP Edge.)
And then, of course, there's Redback Networks Inc. lurking in the wings. (See Redback Goes on the Offensive and ERIC’s IP Ambitions.) While much attention is being paid to AlcaLu’s woes with its wireless infrastructure and Convergence (voice and applications) units, the vendor’s wireline business lines -- access, optical, and IP -- have been doing well. Wireline equipment sales totaled €6 billion ($8.7 billion) in 2007, up from €5.74 billion ($8.33 billion) in 2006.
Russo said sales of IP equipment, lead by the 7750 and 7450 edge routers, were up 33 percent year on year in 2007 (excluding reseller sales), and broke through the $1 billion revenues barrier for the first time. “We are the fastest growing service provider routing supplier,” boasted the CEO. (See AlcaLu's Router Run Continues, Neos Uses AlcaLu's 7750, Wind Launches IPTV, AlcaLu Racks Up Contract Wins, AlcaLu Wins in China, and AlcaLu Touts IP Upgrades.) And now, of course, AlcaLu is targeting the growing mobile IP infrastructure market with variations on its fixed line gear, and is planning more enhancements to its IP platform. (See AlcaLu Targets Wireless Backhaul and AlcaLu Identifies Deep Packet Potential.)
Russo also said optical equipment sales were up 14 percent in 2007, though she didn’t provide a revenue number, and that AlcaLu had retained its number one position in that market. (See Optical Shines in Q2.)
And in access gear, AlcaLu is the global leader in DSL port deployments, with more than 180 customers. Price pressures, from the likes of Huawei Technologies Co. Ltd. , mean, though, that while AlcaLu had its most successful year ever in DSL port shipments (up 8 percent) total revenues from DSL equipment fell in 2007 compared with the previous 12 months. (See AlcaLu Claims DSL Lead.)
In addition, the vendor is making strong early headway in the GPON market as fiber access rollouts ramp up, with wins at Verizon Communications Inc. (NYSE: VZ) and Orange (NYSE: FTE), among others. (See Hanaro Picks AlcaLu's GPON, Telenor Picks AlcaLu FTTH, AT&T Picks GPON Players, Bright Prospects for GPON, Verizon Deploys GPON, and Vendors Vie for FT GPON Deal.)
— Ray Le Maistre, International News Editor, Light Reading