PARIS, Feb 2 (Reuters) - French telecoms
engineering company
Alcatel is optimistic it can penetrate the strategic U.S. market and compete with world
leaders Lucent (NYSE:LU - news), Cisco (NasdaqNM:CSCO - news) and Nortel
(Toronto:NT.TO - news), the company said in interview. "We think we are in a good
position to challenge them," Olivier Houssin, Vice-President of Alcatel's telecom division,
told Reuters in an interview late on Tuesday.
Alcatel, which only started to make a serious foray into the U.S. market over the past 18 months with the purchase of six
telecoms firms, has a clear strategy, one of the best unified voice/data systems available and a strong U.S. team, he said.
Houssin said Alcatel was positioning itself to be ahead of its rivals in the potentially huge market for ''convergent'' telecoms
systems -- which can simultaneously handle conventional telephone calls and data transmission or Internet access.
"Our strategy is not to go into the U.S. five years late with a traditional PBX system which just offers voice telephony and
try to do battle on a market totally dominated by Lucent and Nortel. That isn't a winning strategy.
''We want to maximise the extraordinary possibilities offered by the convergence of voice and data and be a leader, not a
follower, with PCX-type products,'' he said.
Alcatel last week announced the U.S. launch of a private communications exchange OmniPCX 4400 -- a voice and data
network based on Internet Protocol -- aimed at corporate customers.
The OmniPCX 4400 was launched in October in Europe, where Alcatel claims 27 percent of the telecoms equipment
market.
Houssin said Alcatel's PCX technology was ''a considerable weapon'' for penetrating the U.S., which hosts 50 percent of
the global $5-billion market for call centres.
PROMISING MARKET FOR UNIFIED VOICE/DATA SYSTEMS
Alcatel already has a contract to supply OmniPCX equipment to Germany's Software AG and expects to announce a deal
with U.S. firm Computer Associates (NYSE:CA - news) later this week.
Houssin said Alcatel expected keen interest from existing customers with both European and U.S. units who needed a
unified voice/data system covering all their operations worldwide.
The U.S. launch is the culmination of 18 months preparation, including spending nearly $9 billion to acquire six U.S. firms --
Assured Access, DSC, Internet Devices, Packet Engines, Xylan and Genesys -- to offer as complete a service as possible.
Xylan and Packet Engines would ''fill the LAN switch and data gaps in the PCX offer'' while Genesys (NasdaqNM:GCTI
- news), a world leader in software for voice/data integration, enabled Alcatel to offer both unified networks and unified
applications, Houssin said.
Unified applications mean you can visit a travel Web site and click on an on-screen button to talk directly to a travel agent,
or take a call from a customer which automatically brings the customer's records onto your computer screen.
Houssin said Alcatel would focus on more U.S. investments in 2000, ''creating new commercial partnerships, organising
customer support services and call centre systems, and investing in publicity to make companies aware of the Alcatel brand
name.''
''Our aim is to have several dozen customers or reference sites with big North American customers by the end of the year,''
he said, adding that sales would not take off before 2001.
Houssin said Alcatel was not yet in the top league of telecoms engineering companies but said it was confident of raising
profitability to rivals' levels over the coming years.
"It is clear the market values Nortel, Lucent and Cisco at much higher multiples... When our profitability is as good as the
best our valuations will be comparable to theirs.
''We are optimistic of attaining our 1999 (profitability) target and will make further improvements in 2000,'' he said.
Alcatel shares were up 6.06 percent at 220.6 euros at 1234 GMT on Wednesday, in expectation its 1999 full year results,
due to be published at 0715 GMT on Thursday, would exceed forecasts. |
