Euronews: AlcaLu Needs to Shed 10,000 More

Alcatel-Lucent (NYSE: ALU), Ericsson AB (Nasdaq: ERIC) and Telefónica Deutschland GmbH lead the pack in today's hunt for EMEA headlines.

  • Alcatel-Lucent needs to shed around 10,000 more workers if it is to be truly competitive with the likes of Nokia Networks and Ericsson, according to data gathered by Bloomberg. The numbers reveal that AlcaLu's revenue per employee was €49,700 (US$63,600) last quarter, which was at least 14 percent less than its main rivals, while its selling and administrative expenses as a percentage of sales still stood at 16 percent, compared with 11 percent for Ericsson and 10.5 percent for NSN. (See Alcatel-Lucent Sharpens Its Focus and Margin Misery for Alcatel-Lucent.)

  • It's Ericsson's annual Investor Day today in Stockholm, and to help set the scene the vendor is predicting a CAGR (compound annual growth rate) of 3-5 percent in the global network equipment market from now until 2015, though it believes that growth in its particular segment -- radio, IP and transport, core -- will be slightly higher, at 4-6 percent. (See Ericsson Talks Up Market Growth, Ericsson Feels Networks Squeeze in Q3, Ericsson CTO: Let's Redefine SDN and Ericsson Buys More OSS Smarts .)

  • It's been a surprisingly good third quarter for Telefónica Deutschland, where core operating profits rose 14.1 percent year-on-year in a tough market, reports Reuters. Also on the Telefónica front, the carrier's go-ahead Digital division has launched Instant Servers, an Infrastructure-as-a-Service (IaaS) offering hooked into data centers in Madrid and London. (See Telefónica Digital Offers IaaS.)

  • Belgium's Belgacom SA (Euronext: BELG) has launched LTE services in eight cities: Hasselt, Antwerp, Ghent, Leuven, Liège, Namur, Mons and Waver. (See Belgacom Launches 4G in Eight Cities and Brussels Sprouts LTE Auction Plans .)

  • Dutch incumbent KPN Telecom NV (NYSE: KPN) is close to agreeing a sale of its German towers to American Tower Corp. (NYSE: AMT), according to a Bloomberg report. A price tag in the region of €300-400 million ($383-511 million) is expected.

    In other EMEA news:

    — Paul Rainford, Assistant Editor, Europe, Light Reading

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    macster 12/5/2012 | 5:17:51 PM
    re: Euronews: AlcaLu Needs to Shed 10,000 More

    "For the techies, of couse a DSLAM is an ATM concentrator....."

    Not so much these days (VDSL)


    P.S. Hmmm..... I think I might actually know you. Were you with Tellabs at the turn of the century? Did you spent some time in a certain Asian country doing the DDN project? :)

    paolo.franzoi 12/5/2012 | 5:17:50 PM
    re: Euronews: AlcaLu Needs to Shed 10,000 More


    I worked at AFC in those days and was there during the acquisition.



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