Lucent Latin America chief bullish on area
Reuters, Tuesday, November 17, 1998 at 20:05
By Angus MacSwan
AVENTURA, Fla., Nov 17 (Reuters) - Telecommunications
equipment giant Lucent Technologies Inc (NYSE:LU) sees great
opportunities in a vast Latin America that is crying out for
modern communications, and it aims for growth ahead of the
market, its chief executive for the region said on Tuesday.
Despite markets fears that Latin American economies are
heading into trouble, "we're extremely committed to this
region, it is absolutley key to our success," said Arthur
Medeiros, president and chief executive officer for Lucent's
operations in Latin America and the Caribbean.
"We are cautiously optimistic we are going to be
successful...Latin America is not a perfect economy but its got
all the opportunities in the world for future growth. We're
bullish about our opportunities...we're here for the long
term," he told reporters at a Latin American business
conference.
Medeiros declined to specify Lucent's growth targets.
"My goal is to grow faster than the market. If that
market's growing at X, I'm growing at X-plus. That's my goal."
Latin America, and huge Brazil in particular, promises a
bonanza for telecommunications companies as countries
benefitting from boom years seek to modernise traditionally
weak infrastructures and integrate their economies.
Overall growth in the industry in the region last year was
about 15-17 percent, though it varied between sectors and
countries. The Internet in Brazil grew 60 per cent, the data
sector in that country grew 30-35 per cent, and the wirless
sector in some countries 40-45 per cent.
"Rather than come out with a broadbrush statement, I prefer
to look at what countries there are, where we're going, with
what technology, determine what growth is within the market
place then grow faster," Medeiros said.
Lucent's growth in Latin America had been about 30 per
cent over the past three years, spokesman Fernando Figueredo
said.
Other than Brazil, Lucent was concentrating on Mexico,
Argentina, Peru and Venezuela, he said.
The Coral Gables-based executive declined to say how much
Latin America contributed to Lucent's worldwide business but
said "I tell my counterparts I think I've got the fastest
growing area in the world."
Medeiros also expressed confidence in the Latin America
economy overall, despite the shockwaves rolling in from Asia.
In a speech to the conference, he said that "portfolio"
investors looking for short-term gains were seeing dips, but
multi-nationals were committed to long term investment in what
they still regarded as a region rich in opportunity. The
economies had been strong before the Asia crisis and
governments were following tight fiscal policies.
Lucent now has 12,000 employees in 19 Latin America and
Caribbean countries.
The Murray-Hill, N.J.,-based company builds the hardware
and software for global communications networks, builds local
networks and business systems, and makes microchips and related
components. Its worldwide 1997 revenues were $27.1 billion.
Copyright 1998, Reuters News Service |
