Alcatel-Lucent S.A. Type Société Anonyme Traded as Euronext: ALU, NYSE: ALU Industry Telecommunications Founded 2006 (1898 as Alcatel, 1996 as Lucent Technologies) Headquarters 7th arrondissement, Paris, France Area served Worldwide Key people Ben Verwaayen (CEO), Philippe Camus (Chairman) Products Hardware, software and services to telecommunications service providers and enterprises Revenue €16.00 billion (2010) Operating income (€309 million) (2010) Profit (€334 million) (2010) Total assets €24.88 billion (end 2010) Total equity €4.205 billion (end 2010) Employees 79,800 (end 2010) Website www.alcatel-lucent.com
Alcatel-Lucent is a global telecommunications corporation, headquartered in the 7th arrondissement of Paris, France. It provides telecommunications solutions to service providers, enterprises, and governments around the world, enabling these customers to deliver voice, data, and video services. The company focuses on fixed, mobile, and converged networking hardware, IP technologies, software, and services. It holds Bell Labs, one of the largest innovation and R&D houses in the communications industry. Alcatel-Lucent has operations in more than 130 countries.
The company is under the leadership of Chief Executive Officer Ben Verwaayen and the non-executive Chairman of the Board is Philippe Camus. Verwaayen and Camus joined the company in the third quarter of 2008 after Alcatel-Lucent's first CEO Patricia Russo and first Chairman Serge Tchuruk resigned. For 2010, the company posted revenues of €15.996 billion and a reported net loss of €334 million.
Alcatel-Lucent was formed when Alcatel merged with Lucent Technologies on December 1, 2006. However, the company as a whole has been a part of telecommunications industry since the late 19th century. The company has roots in two early telecommunications companies: La Compagnie Générale d'Electricité (CGE) and the Western Electric Manufacturing Company.
Western Electric began in 1869 when Elisha Gray and Enos N. Barton started a small manufacturing firm based in Cleveland, Ohio. By 1880, the company had relocated to Chicago, Illinois and become the largest electrical manufacturing company in the U.S. In 1881 the American Bell Telephone Company — founded by Alexander Graham Bell and forerunner of American Telephone & Telegraph (AT&T) — purchased a controlling interest in Western Electric and made it the exclusive developer and manufacturer of equipment for the Bell telephone companies.
CGE was formed in 1898 by French engineer Pierre Azaria in the Alsace region of what was then Germany and was a conglomerate involved in industries such as electricity, transportation, electronics and telecommunications. CGE would become a leader in digital communications and would also be known for producing the TGV (train à grande vitesse) high speed trains in France.
Bell Telephone Laboratories was created in 1925 from the consolidation of the R&D organizations of Western Electric and AT&T. Bell Labs would make significant scientific advances including: the transistor, the laser, the solar cell battery, the digital signal processor chip, the Unix operating system and the cellular concept of mobile telephone service. Bell Labs researchers have won 11 Nobel Prizes.
AT&T also re-entered the European telecommunications market in 1984 following the break-up of AT&T. Philips promoted the venture in part because its PRX public switching technology was ageing and it sought a partner to help fund the necessary development costs of digital switching. The joint company used the existing manufacturing and development facilities in The Hague, Hilversum, Brussels and Malmesbury as well as its US resources.to adapt the 5ESS system to the European market The joint venture company AT&T & Philips Telecommunications BV doubled annual turnover between 1984 and in 1987 won major switching and transmission contracts, mainly in the effectively captive Netherlands market. In 1987 AT&T increased its holding to 60% and in 1990 it purchased the remainder of the Philips' holding.
In 1998 Alcatel Alsthom shifted its focus to the telecommunications industry — spinning off its Alsthom activities and changing the company’s name to Alcatel. AT&T spun off Lucent Technologies in April 1996 with an initial public offering.
Facing intense competition in the telecommunications industry, Alcatel and Lucent Technologies merged on November 30, 2006.
At the same time, Alcatel announced that it would swap its shares of Alcatel Alenia Space and Telespazio for €673 million and a 12.1% stake in Thales, a key player in the French defense industry. This increased Alcatel’s stake in Thales to 20.8%.
Alcatel-Lucent acquired Nortel's UMTS radio access business at the end of 2006. During 2007 the company acquired Canadian metro WDM networking supplier Tropic Networks, Inc.; enterprise services gateway products developer NetDevices; IPTV software company Tamblin; and the telecommunications consulting practice Thompson Advisory Group, Inc. Alcatel-Lucent acquired Motive, Inc., a provider of service management software for broadband and mobile data services in 2008. They formerly had a joint venture with Dutch company Draka Holding N.V. for manufacturing optical fibre, but Draka bought out Alcatel-Lucent's 49.9% stake for €209 million in December 2007.
In October 2011, Alcatel-Lucent has sold its call-center services business of the Genesys unit to Permira, the private equity group, for $1.5 billion or the same amount the company bought the business in 2000. Alcatel-Lucent much-needed funding for the Franco-American business, which has made losses for the past 5 years.
The company's global headquarters is in Paris, France. There are regional groups for the Americas, Asia Pacific & China, and Europe, Middle East & Africa.. Middle East and Africa Headquarters are at Smart Village, Giza, Egypt.
Approximately half of the Application Division consists of the enterprise business and Network Applications. Services include subscriber data management, digital media, payment sorting, and customer experience management for telecoms. Content delivery networks (CDN) are becoming a increasingly large part of the Division as network traffic complexity calls for denser routers.
Alcatel-Lucent wireline network services provides optical networking, service provider routing, and broadband access to the telecommunications industry, and other industries that require networking capabilitie, such as the energy and transportation industry. Wireless services emphasize growing backhaul and router businesses as companies like Verizon, AT&T, and Sprint are focused on 4G/LTE rollout.
- Applications Group - Develops software for Carriers such as digital home management and rich media applications and for Enterprises to enable deployment of applications to transform their customer service capabilities.
- Networks Group - Telecommunications products for wireline, wireless and convergent service providers.
- Enterprise and Strategic Industries Group - Provides enterprises with communications solutions such as unified communications and contact centers, IP telephony, performance management software and security solutions.
- Services Group - Offers professional telecommunications services to carriers that encompass the entire network lifecycle.
7750 Service Router
Features supported in 7750 service routers cover advanced IP/MPLS edge routing services (including IPv6), network-based security (L2 and L3 filtering), real-time services (voice and video) and accounting. 7750 service routers support high availability features like non stop routing, non stop forwarding or graceful restart. These multiservice router series is designed for the edge of provider networks, but can also operate in small or medium core networks. BGP is fully supported and 7750 can be used as peering or route reflector device.
It also supports Layer 2 virtual circuits, Layer 2 VPNs, Layer 2.5 Interworking VPNs, Layer 3 2547 VPNs, VPLS, GRE, IP over IP and other tunneling mechanisms.
It supports hierarchical Quality of Service per port, per logical circuit (DLCI, VC/VP, VLAN), and per channel (to DS0) for traffic prioritization. These QoS functions include classification, rate limiting, shaping, weighted round-robin scheduling and strict priority queuing.
7750 also supports network filtering capabilities, unicast reverse path forwarding and rate limiting. The 7750 platform can also provide services such as high-speed NAT, stateful firewall and cFlow accounting.
- SR-1 (discontinued)
- Tom Burns, Entreprise
- Stephen A. Carter, Europe, Middle East & Africa and Corporate Marketing & Communications
- Robin Dargue, Business and IT Transformation
- John Dickson, Operations
- Kenneth Frank, Reliance Industries Joint Initiative
- Adolfo Hernandez, Software, Services & Solutions and Strategic Industries
- Christel Heydemann, Human Resources & Transformation
- Philippe Keryer, Networks
- Jeong Kim, Bell Labs and Corporate Strategy
- George Nazi, Global Customer Delivery
- Rajeev Singh-Molares, Asia-Pacific
- Paul Tufano, Chief Financial Officer
- Robert Vrij, Americas and Strategic Alliances
Board of Directors
- Philippe Camus (Chairman)
- Ben Verwaayen (CEO)
- Daniel Bernard
- W. Frank Blount
- Stuart Eizenstat
- Louis Hughes
- Sylvia Jay
- Carla Cico
- Jean Monty
- Olivier Piou
- Jean-Cyril Spinetta
- Jean Pierre Desbois
- Bertrand Lapraye
- Bell Labs is Alcatel-Lucent's research & development organization.
- Alcatel-Lucent spent €2.5 billion for R&D in 2008.
- Alcatel-Lucent spent €2.4 billion for R&D in 2009.
- Alcatel-Lucent Bell-Labs currently has 27,600 active patents.
- 2,100 patents granted in 2009 alone.
- Is involved in 100 worldwide standardization bodies.
Alcatel-Lucent v. Microsoft
Lucent Technologies filed suit against Gateway and Dell, claiming they had violated patents on MP3, MPEG and other technologies developed by Bell Labs, a division of predecessor company American Telephone & Telegraph. Microsoft voluntarily joined the lawsuit in April 2003, and Alcatel was added after it acquired Lucent. The case, involving a number of patents, is pending in U.S. District Court in San Diego, California.[when?]
The first part of the case involved two audio coding patents that Alcatel-Lucent claimed were infringed by Microsoft's Windows Media Player application. Alcatel-Lucent won the trial and $1.52 billion in damages, but the judge granted Microsoft's motion for judgment and new trial. Alcatel-Lucent says it will appeal.[dead link]
In the second part of the case, the judge ruled that Microsoft had not violated Alcatel-Lucent's patents relating to speech recognition and the case was therefore dismissed before going to trial. Alcatel-Lucent intends to appeal.
The third part of the case, involving several user interface-related patents, is scheduled to begin on 21 May 2013.
Additional patent infringement cases, some filed by Microsoft and some filed by Alcatel-Lucent, are pending in the U.S.
Alcatel-Lucent has its head office in the 7th arrondissement of Paris, France since June 2010. Its previous head office, in the 8th arrondissement of Paris, built between 1912 and 1929, was renovated in 1998. During the renovation the building was decorated with a theme of the cosmos and time.
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- ^ Pleading Paper
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- ^ Microsoft hit with $1.5 billion patent verdict | CNET News.com
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- ^ "la tête dans les étoiles." Le Journal du Net. Retrieved on 8 July 2010.
- Alcatel-Lucent company website
- Alcatel-Lucent's Enriching Communications online magazine
- Alcatel-Lucent History
- Alcatel-Lucent Bell Labs portal
- Alcatel-Lucent Company Summary from Yahoo
- Western Electric History
- Western Electric History Chart
- Alcatel Vacuum Technology UK
CAC 40 companies of France
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