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Technology Stocks : Alcatel (ALA) and France

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To: Steve Fancy who started this subject3/11/2002 10:13:08 AM
From: Ian@SI  Read Replies (1) of 3891
 
Alcatel to unveil new data telecom product
Simon Tuck

OTTAWA -- Alcatel SA is set to unveil today a key Canadian-made product that the technology giant hopes will make it a bigger player in the data half of the telecommunications equipment business.

The new product, developed exclusively in Ottawa and Vancouver by a team of about 90 engineers, is a routing switch platform that is designed to allow telephone companies, Internet providers and other telecommunications services firms to carry both voice and data traffic at faster speeds and lower costs. The new product is now in trials with 15 customers, Alcatel says.

Officially called the high-density multiservice media gateway, the platform was developed at what used to be Newbridge Networks Corp., and will also be manufactured at what used to be Newbridge headquarters in Ottawa.

Newbridge, once one of Canada's largest technology companies, was acquired by Paris-based Alcatel in 2000 for $7.1-billion (U.S.) in stock.

"It's a made-in-Canada solution that is a worldwide solution," said Jim Guillet, assistant vice-president of the company's broadband networking division.

Mr. Guillet said the new product is also important because it has the potential to boost sales of other Alcatel gear that can be used with the new platform.

Chris Umiastowski, an analyst at Yorkton Securities Inc. in Toronto, said it's difficult for equipment makers to score big wins in today's slumping markets.

"The whole market is very competitive for anything like this," Mr. Umiastowski said. "It's pretty crowded."
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