Alcatel Won't Take Stake As Risk Partner In UMTS Projects
Dow Jones Online News, 09/8/2000 09:02
PARIS -(Dow Jones)- Alcatel SA (ALA) Chairman Serge Tchuruk said Friday that his company will give financial support to telecommunications operators embarking on third-generation mobile phone networks, but that it won't take a stake as a risk partner in theseprojects.
"We aren't planning to hold stakes in the capital (of Universal Mobile Telecommunications Systems ventures)," Tchuruk told reporters.
He said that should Alcatel take a limited stake in a UMTS project, that would be "a temporary move with the clear intention to pull out".
Tchuruk said Alcatel would provide financial backing to telecommunications operators by extending credit for UMTS equipment.
"Large telecoms companies will get a favorable reception from Alcatel," he said
"But we don't intend to turn harebrained," he said.
Telecoms companies have said they will seek financial support from equipment suppliers to roll out their 3G networks because they are committed to paying high prices for UMTS licenses.
Five telecoms operators are to pay a combined EUR51 billion to acquire UMTS licenses in Germany.
In August, the French government unveiled the conditions for allocating four licenses at EUR4.95 billion each.
Tchuruk was speaking to reporters on the sidelines of a ceremony to inaugurate a European 1,400 kilometer fiberglass network commissioned by Level 3 Communications Inc. (LVLT) of the U.S.
Tchuruk said he expects the world market for optronics equipment, including fiberglass cables, to grow by 35% to 40% annually in the coming years.
-By David Gauthier-Villars, Dow Jones Newswires; 331-4017-1740;
(This story was originally published by Dow Jones Newswires)
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