Alcatel Lucent Business Operations and Network Solutions

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Alcatel-Lucent's business operations are a testament to its commitment to innovation and customer satisfaction. The company's network solutions are designed to meet the evolving needs of businesses and organizations.

Alcatel-Lucent's IP routing solutions, such as the 7950 XRS, offer high-performance and reliability. This solution is ideal for large-scale networks.

Alcatel-Lucent's optical networking solutions, like the 1830 Photonic Service Switch, enable high-speed data transmission over long distances. This is particularly useful for applications that require low latency.

The company's network management solutions, such as the Network Services Platform, provide real-time monitoring and control of network operations. This helps businesses optimize their network performance and reduce downtime.

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Company History

Bell Labs was created in 1925 from the consolidation of the R&D organizations of Western Electric and AT&T, making significant scientific advances including the transistor, the laser, and the cellular concept of mobile telephone service.

Bell Labs researchers have won 7 Nobel Prizes.

For 2010, the company had revenues of €16 billion and a reported net loss of €334 million.

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Credit: youtube.com, Celebrating 100 Years of Alcatel Lucent Enterprise

In 2006, Alcatel and Lucent Technologies merged to form Alcatel-Lucent, a move made in response to intense competition in the telecommunications industry.

The company's first CEO, Patricia Russo, and first chairman, Serge Tchuruk, resigned in September 2008, and Ben Verwaayen was appointed as the new CEO.

Alcatel-Lucent announced the acquisition of OpenPlug on 1 September 2010.

In 2011, the company sold its Genesys call-centre services business unit to Permira for $1.5 billion, the same amount it had paid for the business in 2000.

Alcatel-Lucent needed funding for the Franco-American business, which made annual losses from 2007 to 2011.

In 2014, the company closed the sale of its subsidiary Alcatel-Lucent Enterprise (ALE) to China Huaxin Post & Telecommunication Economy Development Center.

Alcatel-Lucent took ownership of all seven ships in the fleet of Louis Dreyfus Armateurs (LDA) in 2015, which would be operated by LDA.

Business Operations

Alcatel-Lucent's business operations were divided into two main segments: Core Networking and Access.

Credit: youtube.com, ALE: Experience the Innovation that Powers the Future

The Core Networking segment was comprised of three business divisions: IP Routing, IP Transport, and IP Platforms.

These divisions worked together to provide a comprehensive networking solution.

The Access segment, on the other hand, had four business divisions: Wireless, Fixed Access, Licensing, and Managed Services.

This division focused on providing connectivity to end-users through various access technologies.

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2006-2015

Alcatel-Lucent acquired Nortel's UMTS radio access business at the end of 2006, marking a significant expansion of its operations.

In 2007, the company made several key acquisitions, including Tropic Networks, Inc., a Canadian metro WDM networking supplier, and NetDevices, an enterprise services gateway products developer.

Alcatel-Lucent also acquired Tamblin, an IPTV software company, and the telecommunications consulting practice Thompson Advisory Group, Inc. that same year.

The company's joint venture with Draka Holding N.V. for manufacturing optical fibre came to an end in December 2007, when Draka bought out Alcatel-Lucent's 49.9% stake for €209 million.

Motive, Inc., a Texas-based provider of service management software for broadband and mobile data services, was acquired by Alcatel-Lucent in 2008.

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Detailed view of fiber optic cables connected to equipment in a data center.
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Alcatel-Lucent moved its operations from Columbus, Ohio to Dublin, Ohio in 2011, relocating to a smaller 120,000 square foot office space.

The company received a $10 million tax incentive from the State of Ohio to assist with the relocation costs and retain its telecommunications workforce in the region.

In 2013, Michel Combes succeeded Verwaayen as CEO and announced "The Shift Plan", a three-year plan to refocus the portfolio on IP networking, ultra-broadband access, and cloud, while generating €1 billion in cost savings.

Alcatel-Lucent also planned to sell selective assets to generate at least €1 billion over the period of the plan and restructure its debt.

The company transferred its Italian labs for the management system for terrestrial networks and two families of equipment for fiber optic telecommunications to a new dedicated company, SM Optics, in 2014.

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Undersea Communications

Alcatel had a long history of domestic and global work in laying the infrastructure of undersea routes for telecommunications.

Credit: youtube.com, How The Internet Travels Across Oceans

The company's purchases in the 1990s included the Enderby's Wharf site on the Thames in London, where cables were made from the 1850s, and Les Câbles de Lyon at Calais, established in 1891.

By 2004, Alcatel had several cable ships in undersea operations, including the Ile de Batz, Ile de Brehat, Ile de Re, and Ile de Sein.

Alcatel also had a subsidiary, Alcatel Submarine Networks Marine A/S, with cable ships Heimdal and Lodbrog, and another subsidiary, Alcatel Contracting Norway AS, operated CS Stanelco.

The manufacturing location for telecommunication components, including repeaters, was in Greenwich, UK, where they produced amplifiers, repeaters, and other submerged equipment since 1858.

Between May 2008 and September 2010, Alcatel-Lucent completed 10,000 kilometers of two-fiber-pair cabling on the EASSy link using DWDM technology.

Alcatel-Lucent's undersea fiber cabling connected South Africa to Sudan, passing through nine stations.

In 2011, the Alcatel CS Ile de Sein assisted in recovering the Air France Flight 447 data recorder in the Atlantic.

The CS Gulmar Badaro, which Alcatel-Lucent purchased in 2011 and renamed CS Ile d'Aix, had facilities for cable laying and repair.

By 2016, Alcatel-Lucent had deployed 580,000 kilometers of optical submarine cables/systems globally.

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Operating Segments

Credit: youtube.com, IFRS 8 Operating Segments summary - applies in 2025

The company's business operations are divided into distinct segments, each with its own set of responsibilities and goals.

The Core Networking segment is a significant part of the company's operations, encompassing three business divisions: IP Routing, IP Transport, and IP Platforms.

These divisions work together to provide a comprehensive network infrastructure for the company's customers.

The Access segment is another key area of focus, comprising four business divisions: Wireless, Fixed Access, Licensing, and Managed Services.

Each of these divisions plays a crucial role in delivering a seamless and secure connectivity experience to customers.

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Alcatel Lucent Enterprise and Celona Offer Private 5G Service

Alcatel-Lucent Enterprise has teamed up with Celona to provide a turnkey private 5G service for industrial or IoT networks.

This package includes technology from across ALE's platforms, including ruggedized OmniSwitch hardware, OmniSwitch LAN, and OmniAccess Stellar WLAN software for local and wide area connectivity.

Management of the package can be done through ALE's OmniVista management package.

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Private wireless specialist Celona offers a variety of 5G components, including a software-defined 4G/5G core, SIM/eSIM secure authentication and device management capabilities, wireless access points, and a cloud-based deployment, monitoring, and operation service.

The service will include support for Celona's MicroSlicing and Aerloc technologies. MicroSlicing ensures application Quality of Service (QoS) features and guaranteed service level agreements (SLAs) over the wireless network, while Aerloc provides reliable service and policy enforcement for business-critical applications.

The ALE Private 5G service is targeted at complex industrial settings such as manufacturing, refineries, logistics warehouses, and other hard-to-network spaces.

Private mobile networks are useful in enterprise locations such as factories, warehouses, ports, airports, and mines to provide:

  • Better reliability and scalability than other wireless options
  • Data privacy which enables better surface attack management
  • Isolation from public cellular networks, stronger authentication than Wi-Fi
  • Consolidation of multiple existing connectivity technologies into one service
  • Data collection and analysis, and additional decision services that are necessary for connected solutions and industrial applications

Organization and Structure

The global headquarters of Alcatel was located in Boulogne-Billancourt, France, which is now a Nokia office.

The company had previous head offices in the 7th and 8th arrondissements of Paris, France.

The 8th arrondissement head office was built between 1912 and 1929 and renovated in 1998, featuring a unique cosmic and time theme in its decor.

Purchase by Nokia

Low Angle Shot Of A Modern Building With Glass Exterior
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Nokia announced its intent to purchase Alcatel-Lucent for €15.6 billion in an all-stock deal on 15 April 2015.

The acquisition aimed to create a stronger competitor to rival firms Ericsson and Huawei, whom Nokia and Alcatel-Lucent had surpassed in terms of total combined revenue in 2014.

Regulatory approval was obtained in October 2015, paving the way for the deal to move forward.

Shareholder approval was announced on 4 January 2016, further solidifying the acquisition's progress.

Philippe Camus, who had been chairman of the board since 2008, took over as interim CEO after Combes left in September.

The Alcatel-Lucent brand would be replaced by Nokia, while the Bell Labs division would be maintained as part of the acquisition.

Alcatel-Lucent started operating as part of the Nokia Group on 14 January 2016.

The sale to Nokia was finalized in November, and the company was merged into Nokia Networks.

Additional reading: List of Acquisitions by Nokia

Organization

The company's global headquarters was located in Boulogne-Billancourt, France, but it had previous head offices in the 7th and 8th arrondissements of Paris, France.

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Its previous head office in the 8th arrondissement was built between 1912 and 1929 and renovated in 1998, with a unique theme of the cosmos and time.

The company had regional groups for the Americas, Asia Pacific & China, and Europe, Middle East & Africa.

The Middle East and Africa Headquarters were located at Smart Village, Giza, Egypt.

Alcatel had a significant presence in Italy with multiple research centers, initially across several locations, but by 2014, it had narrowed down to just three locations: Vimercate, Trieste, and Rome.

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Awards and Controversies

Alcatel-Lucent has been involved in some high-profile controversies. The company agreed to pay a total settlement of $137 million for bribing officials in Costa Rica, Honduras, Malaysia, and Taiwan in violation of the U.S. Foreign Corrupt Practices Act (FCPA).

This scandal led to significant financial penalties, with Alcatel paying $45 million to settle charges with the U.S. Securities and Exchange Commission (SEC) and a further $92 million to settle the criminal charges brought by the U.S. Department of Justice (DOJ).

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Awards and Distinctions

Free stock photo of acknowledgement, arms crossed, awards
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Alcatel-Lucent was recognized as one of the World's Most Innovative Companies by MIT Technology Review in 2012, specifically for its lightRadio innovation.

The company's lightRadio Network won the Mobile World Congress Best Infrastructure Technology Award in 2012.

Alcatel-Lucent was named Industry Group Leader in the Technology Hardware & Equipment sector in the Dow Jones Sustainability Indices review in 2014.

This achievement marked the company's fourth consecutive year being listed in the Thomson Reuters Top 100 Global Innovators.

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FCPA violations

Alcatel-Lucent faced a significant FCPA violation in 2010. The company agreed to pay a total settlement of $137 million for bribing officials in Costa Rica, Honduras, Malaysia, and Taiwan.

The U.S. Securities and Exchange Commission (SEC) alleged that Alcatel retained consultants to funnel bribes of over $8 million to government officials.

Alcatel admitted to making profits of approximately $48 million as a result of the bribes. The company was ordered to pay $45 million to settle charges with the SEC and a further $92 million to settle the criminal charges brought by the U.S. Department of Justice (DOJ).

Competitors and Partnerships

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Alcatel-Lucent had a significant presence in the global telecommunications market, but its competitors were relentless in their pursuit of market share.

Ericsson and Nokia Siemens Networks were two of the company's main competitors, offering similar products and services that rivaled Alcatel-Lucent's offerings.

In an effort to stay competitive, Alcatel-Lucent formed partnerships with other companies to expand its reach and offerings.

One notable partnership was with Google, which helped Alcatel-Lucent develop cloud-based services and solutions.

Alcatel-Lucent also partnered with Microsoft to integrate its products with Microsoft's cloud platform, Azure.

These partnerships helped Alcatel-Lucent stay relevant in the market, but ultimately, the company's struggles continued.

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Future and Response

As Alcatel-Lucent Enterprise (ALE) looks to the future, it's clear that innovation and adaptability will be key to its success. The company has recently received official health data hosting certifications from the national health agency in France, a significant step forward in its mission to deliver cutting-edge solutions.

ALE is committed to staying ahead of the curve, with a focus on developing new digital age technologies that meet the evolving needs of its customers. This includes equipping the French pavilion at the 2020 Dubai exhibition with communication and networking solutions, ensuring that visitors can connect securely.

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Credit: youtube.com, Concerns for Future Internet? IETF 2015: Wim Henderickx

In complex industrial settings, such as manufacturing and logistics warehouses, ALE's Private 5G service offers large-area wireless coverage, secure and reliable high-speed mobility, supporting real-time, critical industrial applications. This service is targeted at customers who require ultra-low latency and deterministic performance, such as those using autonomous guided vehicles, robotics, and HD video analytics.

Looking Ahead

As ALE steps into its 101st year, it's clear that the company is focused on staying ahead of the curve. ALE recently received official health data hosting certifications from the national health agency in France, a significant milestone in its commitment to data security.

To support top-line growth, ALE is developing new digital age technologies that will help the company stay competitive in the marketplace. This includes equipping the French pavilion at the 2020 Dubai exhibition with communication and networking solutions that ensure secure connectivity for all visitors.

The industry is moving at an incredible pace, and ALE is taking a thoughtful approach to innovation. By balancing operational excellence with flexibility, ALE is well-positioned to meet the evolving needs of its clients.

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In fact, ALE has the necessary knowledge and expertise to predict market developments and offer innovative solutions to its clients. This is evident in its partnership with Cofrex, which will provide ALE with a unique opportunity to showcase its capabilities in a high-profile setting.

Here are some key benefits of ALE's focus on innovation:

  • Improved data security through official health data hosting certifications
  • Enhanced customer experience through secure and reliable connectivity
  • Competitive advantage through the development of new digital age technologies

By looking to the future while staying grounded in its history, ALE is poised for continued success in the years to come.

Free Offer for Covid-19 Response

As businesses navigate the challenges of COVID-19, it's heartening to see companies like Alcatel-Lucent Enterprise stepping up to offer support.

Alcatel-Lucent Enterprise's cloud-based platform, Rainbow, is providing free licenses until June 30th, 2020, to help businesses stay afloat.

Rainbow's collaboration expertise is well-known, and with its features, you can conduct video meetings with customers, partners, or colleagues from home.

You can also make calls from any device using audio and video, and share screens and files for efficient interactions.

Here are some of the key features you can take advantage of:

  • Carry-out video meetings with customers, partners or colleagues from home
  • Call from any device using audio and video
  • Share screen and file for efficient interactions

Frequently Asked Questions

Does Alcatel-Lucent still exist?

Alcatel-Lucent is no longer a standalone company, as it was fully acquired by Nokia in 2016. The brand name was retired and merged into Nokia Networks.

Is Alcatel-Lucent a router?

Alcatel-Lucent's 7750 Service Router series is a high-performance router designed for converged IP networks. It delivers advanced routing capabilities and service richness to drive network edge innovation.

Sean Dooley

Lead Writer

Sean Dooley is a seasoned writer with a passion for crafting engaging content. With a strong background in research and analysis, Sean has developed a keen eye for detail and a talent for distilling complex information into clear, concise language. Sean's portfolio includes a wide range of articles on topics such as accounting services, where he has demonstrated a deep understanding of financial concepts and a ability to communicate them effectively to diverse audiences.

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