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

To: thebeach who wrote (5155)	12/8/1998 8:38:00 AM
From: Glenn McDougall	Read Replies (1) \| Respond to of 21876

Lucent puts pressure on Nortel Networks rival to announce expansion plans for Canada By CP TORONTO -- The world's largest telephone equipment maker, Lucent Technologies Inc., will announce expansion plans for Canada today in a move by the big U.S. company to grab a larger share of the fast-growing Canadian telecommunications market. Company officials declined to release details yesterday but analysts say Lucent is trying to capture a bigger chunk of Canada's multibillion-dollar market as its chief rival, Canada's Nortel Networks, continues to make inroads in the giant U.S. market. "It doesn't surprise me at all because Lucent is looking to appear more global -- that's their life," said one analyst who asked not to be named. "Their business is still highly concentrated in the U.S. ... Going into Canada allows them to attack Nortel on their home turf." Lucent, based in Murray Hill, N.J., is currently building its new Canadian headquarters in Markham, north of Toronto. The new complex includes a recently completed warehouse. Lucent, which was spun off from AT&T Corp. two years ago, scored a major victory over Nortel earlier this year in the Canadian market. In July, Sprint Canada put some big money behind its promise to enter the local telephone service market with a decision to buy $400 million worth of phone-network technology from Lucent. Lucent's Canadian subsidiary, Lucent Technologies Canada, already has more than 500 employees. Still, Canada "has been a market that Nortel has dominated," said Robert Wilkes, industry analyst at Brown Brothers Harriman and Co. in New York. "Nortel has been competing with Lucent in the U.S. market for a long time ... Nortel is certainly well known among large telephone companies in the United States." Lucent and Nortel compete head to head with many product lines and services, particularly when it comes to telephone switching gear, networking equipment and wireless products. That's why the Sprint contract was a major inroad for Lucent as it broadens its global business. Toronto-based Sprint Canada provides long-distance voice, data and Internet services to more than 1.35 million customers. The gear it bought from Lucent supports wireline, wireless, voice, data and video applications and voice messaging, allowing the future delivery of a wide array of communications services.