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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: matt dillabough who wrote (13897)	3/10/2000 9:07:00 AM
From: Bipin Prasad	Read Replies (1) \| Respond to of 21876

Lucent sees Asia growth Telecom equipment maker forecasts 30% revenue increase in area in '00 March 10, 2000: 8:15 a.m. ET MANILA, Philippines (Reuters) - Lucent Technologies, one of the world's largest telecommunications equipment makers, expects revenue from the Asia Pacific region to grow at least 30 percent this year from 1999 in light of the opening up of the sector in the region. The company will invest "well over $100 million" in the region in the next three years, Michael Butcher, president and CEO of Lucent Technologies in Asia Pacific, told reporters Friday in Manila. Butcher didn't disclose specific figures, but he said revenue from Asia Pacific accounted for more than 10 percent of the company's 1999 revenue of $38 billion. "The number one reason for the growth is clearly economic recovery in the region," he said. "Number two is we invested during the downturn and we're very well placed in relationships and in people to make the most of our new investments and new projects." Lucent has invested at least $100 million in the region since the start of the crisis in 1997, he said. Butcher said the company also is heartened by prospects of Taiwan's announcement of the first private fixed-line telephone network providers on the island this month. "I'm assuming an enormous explosion in (telecommunications) requirements," he said. Asia regulators opening up Ben Verwaayen, vice chairman of the New Jersey-based company, also said Lucent is encouraged by the way Asian regulators are accommodating technological advances in telecommunications. "In Asia, we've seen a very strong trend towards embracing new technologies," he said. Verwaayen said, however, restrictions remain that hamper the convergence of networks, such as telecommunications and media, for which Lucent is positioning itself globally. "What we would like to see is an environment that understands that convergence is a reality. Of course, local circumstances have to be taken into account, but at the end of the day, the general trends are truly opening the market," he said. "Maybe you were lagging in the "old economy." In the "new economy," everyone starts from scratch...You needed a certain level of accessibility yesterday that you can bypass with technologies nowadays," Verwaayen added. Lucent (LU: Research, Estimates) expects China eventually to lift a suspension on the rollout of CDMA, the U.S. standard mobile phone network it provides. Asia is dominated by the GSM network. Verwaayen said Lucent will continue to have a "very solid" presence in China. Thailand, meanwhile, is expected to complete the liberalization of its telecommunications market by 2006. He also said the low teledensity in some parts of Asia represents an enormous opportunity for its business. "The ongoing investment we've made shows we are convinced that Asia Pacific in the 21st century is an incredibly important part of the telecommunications market in the world," he said.