Editor's Corner

France's Alcatel and Lucent announced definitive plans to merge yesterday, a move that is sure to reverberate across the entire vendor community. You can bet that everyone from the smaller OEMs to major vendors like Ericsson are contemplating their futures and next acquisition moves.

It's been a long time since we've seen a merger of this magnitude in the vendor community. Like the operator community, equipment vendors are seeing growing competition from some non-traditional players such as Chinese vendors Huawei Technologies and ZTE, which are undercutting the competition to win some big contracts around the globe. And as IP technology becomes more prevalent in telecom networks, vendors such as Cisco Systems are making more inroads into the network.

It won't be surprising to hear talk of another big vendor merger in the works, but history has shown that equipment mergers are extremely complex, primarily because vendors compete in a global marketplace and are merging with companies from other countries. It's very difficult to integrate varying corporate cultures and have agreement in a "merger of equals." Remember the failed handset joint ventures between Dutch company Philips and Lucent and QUALCOMM and Japan's Sony?  It will be interesting to see how Lucent navigates through the French culture, which as we all know is very protectionist, especially with its language. New CEO Pat Russo doesn't even speak French!

It should make for interesting fodder at the CTIA show this week. See you there! - Lynnette

Sponsored by ADI

What if we were never truly alone? Our next-gen communications technology can help people in even the most remote places stay connected.

What if there were no ocean, desert, mountain or event that could ever keep us from telling our stories, sharing discoveries or asking for help? ADI’s next-gen communications technology could keep all of us connected.

Suggested Articles

The FCC has once again determined that SNR Wireless and Northstar Wireless are ineligible for about $3.3 billion in bidding credits.

Nokia’s corporate technology chief and head of Bell Labs Marcus Weldon is stepping down.

Mint Mobile, the MVNO made famous by actor Ryan Reynolds, expanded its partnership with Best Buy.