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Orckit sues France's Alcatel in the United States
By Buzzy Gordon/Jerusalem Post
TEL AVIV (June 2) - Tel Aviv-based Orckit Communications has filed suit against French telecommunications giant Alcatel SA, alleging it has gained a monopoly in some US markets through unfair practices and uncompetitive pricing.
The suit, filed in San Francisco, claims Alcatel, Europe's No. 2 phone equipment maker, offered below-market prices for data-networking equipment. This "dumping" practice has deterred competition, stifled the development of new products and services, and narrowed consumers' options, according to the legal papers filed.
The suit also alleges that Alcatel's practices led to reduced revenue for Orckit, which claims it was unable to add more customers or expand as expected. Orckit makes modems and other equipment used in digital subscriber line services that provide high-speed data transmission over ordinary telephone lines.
Orckit's suit claims Alcatel has at least a 52 percent share of the US asymmetric DSL equipment market and made a below-market bid to provide equipment to four regional Bell companies. Orckit also alleges Alcatel has thwarted its competitors from using technology Alcatel developed, even after it was adopted as the telecommunications industry standard.
Orckit's management in Israel issued a terse "no comment" when telephoned by The Jerusalem Post. However, since the US is Orckit's major export market, there is obviously a lot at stake for the company, causing it to take this drastic and expensive step.
More than half of Orckit's $88m. in revenues from sales (approximately $45m.) derives from the US, where Orckit is a supplier to telecommunications carrier GTE.
Orckit's shares on the Nasdaq rose 5.93% to $26.50 in early trading yesterday, while Alcatel shares were up 3.78% to $56.63.
Perry P. |
