Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Alcatel (ALA) and France -- Ignore unavailable to you. Want to Upgrade?

To: larry pollock who wrote (3421)	6/14/2001 11:58:27 AM
From: larry pollock	Read Replies (1) \| Respond to of 3891

Alcatel: Short-term outlook poor But company says telecom spending freeze will thaw By Lisa Sanders, CBS.MarketWatch.com Last Update: 11:42 AM ET June 14, 2001 IRVING, Texas (CBS.MW) - Alcatel's chief operating officer said Thursday that the short-term outlook for the telecom industry remains poor, but he predicted that the capital spending freeze could thaw within a year. "We see good double digit growth in two to five years driven by fast fixed and mobile Internet," said Alcatel's Krish Prabhu, noting that recovery could come even sooner. "The underlying demand for more mobility will drive capex investments back." Paris-based Alcatel (ALA: news, msgs, alerts) (FR:020334: news, alerts) saw its plans to acquire struggling Lucent Technologies fall through in late May. At the same time, Alcatel announced a restructuring of its business and said it would strengthen its focus on service provider networks. Given the current economy: Prabhu remarked Thursday at the Frost Securities Telecom Infrastructure Conference: "The order of the day it to clean up your house. There will be new growth in the market, and you have to be ready for that when it happens." Generally speaking, Prabhu, who heads up Alcatel's Americas operations based in Dallas, said that the biggest difference he sees between now and a year ago is the freeze in capital expenditures spending. Part of the reason for that, he said, is that companies with less money to spend are now reluctant to spend money on technology unless it's a sure thing. The problem could be exacerbated in the short-term by further consolidation among the service providers. Due to the restructuring, Prabhu said Alcatel is "well-positioned to weather the current market slowdown." Lisa Sanders is a Dallas-based reporter for CBS.MarketWatch.com.