Financial Daily from THE HINDU group of publications
Tuesday, Apr 04, 2006
Financial Daily from THE HINDU group of publications Tuesday, Apr 04, 2006 |
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Telecommunications Info-Tech - Mergers & Acquisitions Alcatel-Lucent merger not to hit pacts with ITI Thomas K Thomas
The relative strengths Alcatel is strong in the GSM and IP technology segments, has R&D centres in Chennai, Gurgaon. Lucent is stronger on the CDMA front with offices in 9 cities and more than 1,200 employees.
New Delhi , April 3 The merger of French telecom gear manufacturer Alcatel with US equipment firm Lucent Technologies will not have any impact on the former's agreements signed with Indian Telephone Industries (ITI) for supply and manufacture of GSM-based cellular equipment to Bharat Sanchar Nigam Ltd. The tie-up with C-DoT for setting up research and development facility in the area of Wi-Max will also be honoured by the new joint venture company in which Alcatel will have 60 per cent stake.
Mr Ravi Sharma, Managing Director and President, Alcatel India, told Business Line, "We are not yet clear on the impact the merger will have on the local operations. However, it may not have any effect on the agreements signed with ITI and other similar contracts that already exists." Mr C.S. Rao, Lucent India's President and CEO, could not be reached for comments as he is out of the country.
Alcatel's presence
In India, Alcatel is strong in the GSM and IP technology segments. The company entered the Indian market in 1982 with a technology transfer with ITI and became the first one to manufacture digital switching equipment in the country. Half of India's fixed service lines are based on Alcatel technology. In addition, Alcatel is very strong in the areas of GSM infrastructure, transmission equipment, development and implementation of IN platform, EPABX, broadband equipment, space equipment and telecom infrastructure projects in railways, roads and aviation. The company has research & development and engineering centres in Gurgaon and Chennai.
Lucent's presence
On the other hand, Lucent is stronger on the CDMA front. It has offices in nine cities in India with more than 1,200 employees. The company has opened a Bell Labs centre in Bangalore, in addition to the existing software development centres in Bangalore and Hyderabad. Mr Sharma said the structure of the new joint venture in order to synergise their operations in India would be unveiled gradually.
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