Alcatel suffers biggest losses since its creation

The largest maker of telecommunication equipment in the world, Alcatel-Lucent SA, announced the quarterly loss of 2.58 billion euros ($3.74 billion). The loss became the biggest that the company had since its creation in 2006. Alcatel also scrapped the dividend when it cut the value of its wireless network unit.

Photo: Alcatel suffers biggest losses since its creation

Alcatel-Lucent is one of the world's biggest industry players in telecommunications that provides hardware, software, and services to service providers and enterprises all over the globe. The company is incorporated in France, and has its global executive offices in Paris. The company does business in 132 countries, with almost equal sales distribution coming from both its European and North American regions, and an additional third of its channel located elsewhere in the world. Alcatel-Lucent was formed after Alcatel's buyout of Lucent Technologies on December 1, 2006

It is mostly well known for its DSL multiplexers, used for high-speed Internet access over ADSL and VDSL. It had over 40% of the world DSLAM market in 2007, with more than 143 million lines shipped. It has a partnership with Microsoft as of 2004 to provide IPTV services via its TPSDA (Triple Play Services Delivery Architecture) over DSL and using its 7x50 VPLS/MPLS routers and switches to service providers such as AT&T in the United States. It is also a leading provider of optical transmission equipment, especially for submarine communications cable. Genesys, a U.S. subsidiary, is a leading provider of call centre software.

Alcatel is also the world leader in point-to-point microwave radios and wireless transmission; with over 50 years expertise and over 17% of the global market share in 2005. It has a field-proven experience in deploying and managing wireless transmission networks and 2G, 2.5G, and 3G mobile backhauling.

Alcatel-Lucent has several notable non-network-based businesses. It has a Transport Solutions division that provides routing, control and network management for railway and mass transit operators, such as city undergrounds in Berlin, London and New York.

On April 2, 2006, Alcatel announced a merger with its U.S. competitor, Lucent. The combined company, Alcatel-Lucent, was expected to have revenues of approximately $25 billion U.S. based on 2005 calendar results.

The acquisition was completed on December 1, 2006.