AlcaLu's Singapore Sting

9:20 AM -- Alcatel-Lucent (NYSE: ALU) has failed to fulfill a major Service Provider Information Technology (SPIT) contract for Nucleus Connect Pte Ltd. , the company operating Singapore's National Broadband Network (NBN), and is on the verge of being kicked off the project and hit with a multi-million-dollar penalty, according to a report in The Australian.

AlcaLu won the deal to supply "a turn-key Build-Operate-Transfer (BOT) BSS/OSS solution including software, hardware and professional services, to support its OpCo operations and business models" in September 2009. (See Singapore Slings for AlcaLu, Huawei.)

AlcaLu has been focusing much more on developing and promoting the software and applications enablement side of its business during the past year, so situations such as this one in Singapore could be very damaging to the vendor's reputation as a trusted provider of SPIT capabilities and supporting services, all of which are becoming increasingly important to the traditional equipment firms.

— Ray Le Maistre, International Managing Editor, Light Reading

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