Re: Fixed Broadband Wireless LMDS & xDSL Growth- Alcatel Info
Thread- I tried to edit down the following PR so it wasn't so pro-Alcatel. I follow ALA closely because it mirrors the broadband access market quite nicely. They have no presence in HFC(coaxial cable). But they do have a heavy presence in xDSL and supposedly a heavy presence in the nascent fixed broadband wireless market, LMDS. So I thought this was worth a read for Last Mile investors.
Note the upgraded forecast of 6,000,000 DSL lines out of ALA alone in 2000!? Also note the words, "depending upon market conditions." So what doesn't depend upon market conditions?<g> Anyway, it was quite a jump in estimates so I thought it was worth noting. -MikeM(From Florida)
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Alcatel Outlines Plans for Accelerated Growth in Global Telecom
ATLANTA(SuperComm) June 6, 2000-- At the SUPERCOMM 2000 trade show today, Alcatel (NYSE: ALA) outlined plans for accelerated growth in the US market, following the completion of its acquisition of Newbridge Networks on May 25th.
Alcatel's worldwide lead in broadband networking will be key to its US growth strategy. Alcatel commands the No.1 global market position in ADSL (Asymmetric Digital Subscriber Line) technology with a 56% share. The DSL market is growing explosively, and Alcatel now estimates that it will ship 6 million DSL lines this calendar year, depending on market conditions, up from initial estimates of 3 million.
Industry analysts concur that as a result of the Newbridge acquisition, Alcatel also holds the No.1 global market share in Fixed Wireless Broadband access, or LMDS (Local Multipoint Distribution System), with an estimated market share of about 40%.
The acquisition of Newbridge also puts Alcatel at either No.1 or No.2 in multi-protocol broadband switching on a country by country basis.
"Our first priority is to further grow Alcatel's market share in broadband access - where we already have at least twice the share of our nearest rivals," says Krish Prabhu, COO of Alcatel worldwide and CEO of Alcatel Americas." And, we intend to recapture the worldwide No.1 market share in multi-protocol switching based on ATM/MPLS technologies." Prabhu added that "Alcatel will also aggressively target a top three position within the next major battleground of optical Terabit routing."
"I'm predicting that everyone will quickly come to regard broadband internet as a birthright. In the US it will be right up there with air-conditioning and apple pie," said Pearse Flynn, newly appointed President of Alcatel's Carrier Networking Group. "I have only one goal, and that is to ensure that Alcatel equipment captures, aggregates and switches the lion's share of the world's broadband traffic."
Revenue contributions at Alcatel from US markets have skyrocketed from $350 Million in 1995 to approximately $4.5 Billion in 1999, which represents more than 20% of Alcatel's total revenue.
Newbridge Networks, in turn, derived 38% of sales from US markets in fiscal 2000 and, more importantly, measured sequential revenue growth in its last two fiscal quarters at more than 50%. |
