Alca-Lu: Vendors can succeed without consolidation

Alcatel-Lucent, which has been buffeted by speculation recently about whether it is a possible acquisition target, believes that equipment vendors can still be profitable without the more market consolidation, according to a company executive.

"That doesn't mean that the only way out, or the only future that awaits us, is a consolidated future," said Adolfo Hernandez, the head of the company's operations in Europe, the Middle East and Africa, told Reuters in an interview. "We have to stop just thinking about consolidating and consolidating."

Hernandez's comments come a week after Rajeev Suri, the incoming CEO of rival Nokia Siemens Networks, said there was only room for three major equipment vendors in the market, and that he intended Nokia Siemens to be one of the three left standing. Recent market speculation pegged Alcatel-Lucent as a possible acquisition target by a Chinese vendor like Huawei or ZTE. Both Chinese vendors have said that have no interest in such a move.

Alcatel-Lucent's Hernandez said companies could continue to find success by cutting costs, introducing new technologies and offering managed services to wireless carriers. He said Alcatel-Lucent continues to believe the gear market will decline by 8 percent to 12 percent this year, but also said the company is seeing "realistic optimism" among its customers. 

For more:
- see this Reuters article [1]

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