Alcatel-Lucent may connect 2 deals soon

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Mumbai, Jul 2: After grabbing a $500-million deal for managed network services with Reliance Communications (RCom), Alcatel-Lucent is expected to close two more deals of $250 million to $500 million each within the next three months. Alcatel-Lucent is the third largest telecom equipment provider in the country and competes with Ericsson and Nokia Siemens Networks in this space.

Vivek Mohan, CEO, Alcatel-Lucent, said, “We are currently in talks with two established telecom operators, both wireless and wire line, for managed services and each of the deals could range between $250 million to $500 million.” Mohan added that it is still not clear if the company will provide services on contract basis or form a joint venture (JV) with these operators as well. “We are yet to finalise the model but we should be able to come out with it in the next three months,” he added. Alcatel-Lucent formed a JV with Reliance Communications in May to form an entity that would manage RCom's CDMA as well as GSM network services.

Alcatel-Lucent’s major business currently comes from the equipment business, but the company is now largely focusing on the managed services business. “Currently, the largest part of our revenues comes as a telecom equipment provider but we expect the services business to contribute the larger pie of the revenue,” adds Mohan.

Revenues of the Indian telecom equipment industry grew by 24% to touch Rs 95,407 crore in 2007-08, according to an annual survey by business publication Voice & Data. According to the report, India currently contributes about Rs 7,000 crore as a revenue to Alcatel-Lucent.