Alcatel Creates a New Internet Division to Focus On Carrier IP Market
March 5, 1999
PARIS--(BUSINESS WIRE)
Assured Access to Join New Division as
Alcatel Embraces the
Start-up Spirit
To respond to the explosion of Internet
demand, a new division has been created
within Alcatel, providing Internet solutions for
carriers and service providers.
This new division consists of strong business
units, either already existing within Alcatel, or
wholly owned companies, including Assured
Access and Packet Engines. It offers a
complete access and edge data solution
allowing carriers to connect residential and
business customers.
New Division is Part of Alcatel's Strategic
Approach to the Market
The creation of the Internet Division reflects
Alcatel's vision of the evolution of the market
in three broad segments: new carriers,
existing operators and enterprise. The new
division will address in particular new
"greenfield" operators segment, such as
internet service providers (ISP's), competitive
local exchange carriers (CLEC's) or the newly
created data operations of existing operators.
The Internet Division will also be a center of
expertise for IP technology for other parts of
Alcatel networking activities.
Alcatel will shortly announce its vision for
those established operators requiring an
evolutionary transition to voice/data
integration with combined
narrowband/ATM/IP technologies.
For the enterprise market, a major initiative
has been made with the recently announced
acquisition of Xylan, allowing Alcatel to offer
customers leading converged corporate
communications solutions.
"Alcatel is committed to be a customer
focused organization and our emphasis on
these three broad markets is a reflection of
this strategy," said Serge Tchuruk, Chairman
and CEO of Alcatel. "The new Internet
Division is a key part of our drive to meet the
demands of our customers in the fast growing
Internet market which offers Alcatel great
opportunities. We are determined to take the
initiative and to be a world leader in this
segment, by offering our customers the most
comprehensive product line and best
technology. "
Wide Range of Internet Technologies Now
Available From Alcatel
With the new Internet Division a range of
integrated Internet technologies is now
available to Alcatel customers. High speed
Internet access is available through Alcatel's
ADSL and HFC solutions. The company is the
worldwide leader in ADSL with over 35%
market share worldwide and 52% in the U.S.
Remote access node technology for dial is
available through the newly acquired Assured
Access company, which also integrates voice
over IP (VoIP) gateway functions.
The Xylan acquisition, with its edge and
aggregation routers, will provide seamless
transitions solutions for points of presence
(POP's).
Packet Engines brings wire speed gigabit
routers, providing high performance IP
switching, with its WAN and MAN technology
applicable as a core routing device.
Alcatel network and service management
products will provide customers additional
service features such as billing and service
level agreements, as well as convergence
with the traditional telephone network and
services through signaling gateways and a
powerful IN platform.
Start-up Style Management With
International Reach
The Internet Division will have a common
sales, marketing and customer service team
with strong regional focus to ensure that well
integrated end-to-end solutions are offered
to carriers and service providers around the
world.
With a worldwide presence of over 850
dedicated IP data experts and a global
customer base, the Internet Division will
retain the spirit of an Internet start-up, while
at the same time benefiting from Alcatel's
international presence to accelerate its
development.
It will be organized by business units, each
having a strong focus on their market
requirements and products. While retaining its
autonomy, each business unit will participate
in the overall strategy and the formulation of
end to end solutions.
Business Units will grant long term incentive
plans to eligible employees, to be paid in
Alcatel shares. These plans will largely
depend on their own performance but also on
the performance of the Internet Division as a
whole.
"The Internet has been driven by rapid
innovation, an entrepreneurial spirit and the
rapid growth of start-up companies," said
Martin de Prycker, president of the new
division. "In this new organization we will
capture this spirit, whilst also leveraging
Alcatel's position as a global leader in
communications, to ensure rapid development
and deployment of truly world class Internet
products and services."
The Internet Division is part of the Internet
and Optics group (formerly Transport &
access), together with terrestrial and
submarine transmission and satellites. Martin
de Prycker, formerly director of network
strategy, has been appointed president of
the Internet Division, reporting to Krish
Prabhu, senior executive vice-president of
Alcatel Telecom.
Biography: Martin De Pryker, President
Internet Division, Alcatel
Martin de Prycker, 43, joined Alcatel in 1982
after obtaining degrees in electrical
engineering, computer science and business
management. He held various responsibilities
within the Group's Research Division. In 1984,
he was appointed Research Director of
Alcatel in Antwerp. In 1996, he became vice
president of the Access Division, responsible
for Internet and ADSL. At the end of 1998 he
was appointed Network Strategy Director for
Alcatel Telecom.
A world leader in telecommunications systems
and equipment, as well as related cables and
components activities, Alcatel operates in
over 130 countries. Alcatel provides complete
solutions and services to operators, service
providers, enterprises and consumers, ranging
from backbone networks to user terminals.
For further information on Alcatel, please visit
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