Lucent eyes RP rural opportunities
itmatters.com.ph
Network equipment provider Lucent Technologies is tapping business partners in the Philippines to market its technology to telecommunication service providers in rural areas.
In a news briefing yesterday, Lucent announced its completed the first Asia-Pacific deployment of its BZ5000 telephone switching system, installed by the Calbayog Telephone System (CTS) in the Visayas region. CTS is one of the largest members of the Philippine Association of Private Telephone Companies (PAPTELCO), an industry body of local exchange carriers in the country that provide basic telephone services in rural areas.
"It was developed for Brazil, for the rainforest area. So you can install it outside and this can be done in less than a week. It is also suitable in the Philippines. We have been successful in selling it in the rural areas," said Stephen S. Caldwell, vice-president of Lucent Technologies Global Business Partner for the Asia-Pacific Region.
Aside from fixed lines, the BZ5000 switch allows carriers to upgrade from voice to data services, including Internet access. It can accommodate 8,000 to 20,000 lines.
The cost of acquiring the system depends on the number of lines installed. CTS installed 300 lines at $150 per fixed line, said Lucent Philippines general manager Alvin Dalmacio.
Mr. Dalmacio also reported three more orders for the system from three other members of PAPTELCO based in the South, as well as telcos VITELCO and PHILCOM.
The thrust towards bringing technology to the countryside is a worldwide strategy for Lucent, Mr. Caldwell said.
"Technology is driving prices down and this benefits customers especially those in rural areas," Mr. Caldwell.
Moving the company's manufacturing requirements from US to China has helped drive down the cost of Lucent's products, he said.
Moreover, he gave positive projections for Lucent's business in the Philippines, noting increasing network requirements as foreign firms outsource data processing in the Philippines, citing the establishment of more call centers.
Lucent has 12 business partners and is also forming strategic alliances with IT firms such as IBM and HP, aiming to penetrate new markets for its markets.
Meanwhile, Mr. Caldwell said Lucent's Asia-Pacific operations will not be affected by reported "restructuring" by the company. "It's business as usual," he said. Lucent employs around 7,000 people in the region.
Recent reports indicate that Lucent may cut down close to 20,000 employees as it targets to trim down its workforce to around 50,000.
Mr. Caldwell, however, pointed out that restructuring has been uniform for the whole telecommunications industry. "The industry is soft right now in terms of growth, unlike two years ago when growth was tremendous. However, we see recovery in around 12 months," he said.
FIXED LINE REBOUND
Moreover, Mr. Caldwell said that, the current wireless hype notwithstanding, the landline business is expected to pick up since more people can now afford a line.
Lucent Technologies provides services to both the wireless and the fixed line operators. Mr. Caldwell said while the wireless business may hog the limelight now, fixed line businesses are bound to bounce back.
"There will be resurgence in fixed lines because it brings Internet to homes and more and more people can afford a fixed line. Technology drives the price down. It drives the cost down which not only reflects on the revenues but on the manufacturing cost," he said.
As for the wireless business, he said this is expected to have a softer growth as a lot of new products and technology -- but without appropriate applications nor content -- are introduced in the market.
"Service providers are softening in growth. It may take another 12 to 18 months for it to come back but the growth will not be as strong as 24 months ago when it was 30%. It is not because of saturation, but a lot of products are there but the application is not yet there," he said. -- Lawrence D. Casiraya and Manolette P. Tabingo |
