May 26, 2013
Alcatel-Lucent is a telecommunications equipment vendor, the result of a 2006 merger between Alcatel and Lucent. As one of the largest telecommunications vendors in the world, Alcatel-Lucent offers wireless, wireline, convergence, and enterprise communications equipment.[1] Based in Paris, France, the company sources revenue evenly from North America, Europe and the rest of the world.
Since the merger ALU has performed poorly, posting a $751.8 million loss in 2009 and a loss of $7.29 billion in 2008. Telecommunication equipment providers depend heavily on a small group of service companies such as Verizon Communications (VZ) and AT&T (T), which provide consumer services such a Internet access, wireless voice and data, and video. On the positive side, Alcatel-Lucent's broad offerings allow the company to sell a suite of products, services and upgrades, effectively locking in service providers for periods of time.
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