Alcatel-Lucent S.A.
Type Société Anonyme
Traded as EuronextALU, NYSEALU
Industry Telecommunications
Founded 2006 (1898 as Alcatel, 1996 as Lucent Technologies)
Headquarters 7th arrondissement, Paris, France
Area served Worldwide
Key people Ben Verwaayen (CEO), Philippe Camus (Chairman)
Products Hardware, software and services to telecommunications service providers and enterprises
Revenue 16.00 billion (2010)[1]
Operating income decrease (€309 million) (2010)[1]
Profit decrease (€334 million) (2010)[1]
Total assets €24.88 billion (end 2010)[1]
Total equity €4.205 billion (end 2010)[1]
Employees 79,800 (end 2010)[1]

Alcatel-Lucent is a global telecommunications corporation, headquartered in the 7th arrondissement of Paris, France. It provides telecommunications solutions to service providers, enterprises, and governments around the world, enabling these customers to deliver voice, data, and video services. The company focuses on fixed, mobile, and converged networking hardware, IP technologies, software, and services. It holds Bell Labs, one of the largest innovation and R&D houses in the communications industry.[citation needed] Alcatel-Lucent has operations in more than 130 countries.

The company is under the leadership of Chief Executive Officer Ben Verwaayen and the non-executive Chairman of the Board is Philippe Camus. Verwaayen and Camus joined the company in the third quarter of 2008 after Alcatel-Lucent's first CEO Patricia Russo and first Chairman Serge Tchuruk resigned.[2] For 2010, the company posted revenues of €15.996 billion and a reported net loss of €334 million.[3]



Alcatel One Touch 535, front side

Alcatel-Lucent was formed when Alcatel merged with Lucent Technologies on December 1, 2006. However, the company as a whole has been a part of telecommunications industry since the late 19th century. The company has roots in two early telecommunications companies: La Compagnie Générale d'Electricité (CGE) and the Western Electric Manufacturing Company.[4]

Western Electric began in 1869 when Elisha Gray and Enos N. Barton started a small manufacturing firm based in Cleveland, Ohio. By 1880, the company had relocated to Chicago, Illinois and become the largest electrical manufacturing company in the U.S. In 1881 the American Bell Telephone Company — founded by Alexander Graham Bell and forerunner of American Telephone & Telegraph (AT&T) — purchased a controlling interest in Western Electric and made it the exclusive developer and manufacturer of equipment for the Bell telephone companies.[4]

CGE was formed in 1898 by French engineer Pierre Azaria in the Alsace region of what was then Germany and was a conglomerate involved in industries such as electricity, transportation, electronics and telecommunications. CGE would become a leader in digital communications and would also be known for producing the TGV (train à grande vitesse) high speed trains in France.[4]

Bell Telephone Laboratories was created in 1925 from the consolidation of the R&D organizations of Western Electric and AT&T. Bell Labs would make significant scientific advances including: the transistor, the laser, the solar cell battery, the digital signal processor chip, the Unix operating system and the cellular concept of mobile telephone service. Bell Labs researchers have won 11 Nobel Prizes.[4]

Also in 1925, Western Electric sold its International Western Electric Company subsidiary to ITT Corporation. CGE purchased the telecommunications part of ITT in the mid-1980s.[4]

AT&T also re-entered the European telecommunications market in 1984 following the break-up of AT&T. Philips promoted the venture in part because its PRX public switching technology was ageing and it sought a partner to help fund the necessary development costs of digital switching. The joint company used the existing manufacturing and development facilities in The Hague, Hilversum, Brussels and Malmesbury as well as its US adapt the 5ESS system to the European market The joint venture company AT&T & Philips Telecommunications BV doubled annual turnover between 1984 and in 1987 won major switching and transmission contracts, mainly in the effectively captive Netherlands market. In 1987 AT&T increased its holding to 60% and in 1990 it purchased the remainder of the Philips' holding.

In 1998 Alcatel Alsthom shifted its focus to the telecommunications industry — spinning off its Alsthom activities and changing the company’s name to Alcatel. AT&T spun off Lucent Technologies in April 1996 with an initial public offering.[4]

Facing intense competition in the telecommunications industry, Alcatel and Lucent Technologies merged on November 30, 2006.[5]

At the same time, Alcatel announced that it would swap its shares of Alcatel Alenia Space and Telespazio for €673 million and a 12.1% stake in Thales, a key player in the French defense industry. This increased Alcatel’s stake in Thales to 20.8%.[4]

Alcatel-Lucent acquired Nortel's UMTS radio access business at the end of 2006. During 2007 the company acquired Canadian metro WDM networking supplier Tropic Networks, Inc.; enterprise services gateway products developer NetDevices; IPTV software company Tamblin; and the telecommunications consulting practice Thompson Advisory Group, Inc. Alcatel-Lucent acquired Motive, Inc., a provider of service management software for broadband and mobile data services in 2008.[4] They formerly had a joint venture with Dutch company Draka Holding N.V. for manufacturing optical fibre, but Draka bought out Alcatel-Lucent's 49.9% stake for €209 million in December 2007.[6]

In May 2009 Alcatel-Lucent's stake in Thales was acquired by Dassault Aviation.[7]

Alcatel-Lucent announced[8] it had acquired OpenPlug on September, 1 2010.

In October 2011, Alcatel-Lucent has sold its call-center services business of the Genesys unit to Permira, the private equity group, for $1.5 billion or the same amount the company bought the business in 2000. Alcatel-Lucent much-needed funding for the Franco-American business, which has made losses for the past 5 years.[9]


The company's global headquarters is in Paris, France. There are regional groups for the Americas, Asia Pacific & China, and Europe, Middle East & Africa.[10]. Middle East and Africa Headquarters are at Smart Village, Giza, Egypt.[11]

Business Groups

Applications Division

Approximately half of the Application Division consists of the enterprise business and Network Applications. Services include subscriber data management, digital media, payment sorting, and customer experience management for telecoms. Content delivery networks (CDN) are becoming a increasingly large part of the Division as network traffic complexity calls for denser routers.

Network Division

Alcatel-Lucent wireline network services provides optical networking, service provider routing, and broadband access to the telecommunications industry, and other industries that require networking capabilitie, such as the energy and transportation industry. Wireless services emphasize growing backhaul and router businesses as companies like Verizon, AT&T, and Sprint are focused on 4G/LTE rollout.

  • Applications Group - Develops software for Carriers such as digital home management and rich media applications and for Enterprises to enable deployment of applications to transform their customer service capabilities.[12]
  • Networks Group - Telecommunications products for wireline, wireless and convergent service providers.[12]
  • Enterprise and Strategic Industries Group - Provides enterprises with communications solutions such as unified communications and contact centers, IP telephony, performance management software and security solutions.[12]
  • Services Group - Offers professional telecommunications services to carriers that encompass the entire network lifecycle.[12]

7750 Service Router

7750 Service Router is a series of multiservice edge routers designed and manufactured by Alcatel Lucent[13]. It was introduced by Alcatel-Lucent in 2003, and employs a FlexPath Network Processor.

Features supported in 7750 service routers cover advanced IP/MPLS edge routing services (including IPv6), network-based security (L2 and L3 filtering), real-time services (voice and video) and accounting. 7750 service routers support high availability features like non stop routing, non stop forwarding or graceful restart. These multiservice router series is designed for the edge of provider networks, but can also operate in small or medium core networks. BGP is fully supported and 7750 can be used as peering or route reflector device.

7750 platform is also suitable for aggregation end user connections as it support wide range of access technologies: ATM, Frame Relay, Ethernet and TDM (SONET/SDH).

It also supports Layer 2 virtual circuits, Layer 2 VPNs, Layer 2.5 Interworking VPNs, Layer 3 2547 VPNs, VPLS, GRE, IP over IP and other tunneling mechanisms.

It supports hierarchical Quality of Service per port, per logical circuit (DLCI, VC/VP, VLAN), and per channel (to DS0) for traffic prioritization. These QoS functions include classification, rate limiting, shaping, weighted round-robin scheduling and strict priority queuing.

7750 also supports network filtering capabilities, unicast reverse path forwarding and rate limiting. The 7750 platform can also provide services such as high-speed NAT, stateful firewall and cFlow accounting.


  • SR-12
  • SR-7
  • SRc12
  • SRc4
  • SR-1 (discontinued)

Management Committee[14]

  • Tom Burns, Entreprise
  • Stephen A. Carter, Europe, Middle East & Africa and Corporate Marketing & Communications
  • Robin Dargue, Business and IT Transformation
  • John Dickson, Operations
  • Kenneth Frank, Reliance Industries Joint Initiative
  • Adolfo Hernandez, Software, Services & Solutions and Strategic Industries
  • Christel Heydemann, Human Resources & Transformation
  • Philippe Keryer, Networks
  • Jeong Kim, Bell Labs and Corporate Strategy
  • George Nazi, Global Customer Delivery
  • Rajeev Singh-Molares, Asia-Pacific
  • Paul Tufano, Chief Financial Officer
  • Robert Vrij, Americas and Strategic Alliances

Board of Directors


  • Bell Labs is Alcatel-Lucent's research & development organization.[15]
    • Alcatel-Lucent spent 2.5 billion for R&D in 2008.
    • Alcatel-Lucent spent 2.4 billion for R&D in 2009.
    • Alcatel-Lucent Bell-Labs currently has 27,600 active patents.[16]
    • 2,100 patents granted in 2009 alone.
    • Is involved in 100 worldwide standardization bodies.


Alcatel-Lucent v. Microsoft

Lucent Technologies filed suit against Gateway and Dell, claiming they had violated patents on MP3, MPEG and other technologies developed by Bell Labs, a division of predecessor company American Telephone & Telegraph. Microsoft voluntarily joined the lawsuit in April 2003, and Alcatel was added after it acquired Lucent. The case, involving a number of patents, is pending in U.S. District Court in San Diego, California.[when?]

The first part of the case involved two audio coding patents that Alcatel-Lucent claimed were infringed by Microsoft's Windows Media Player application. Alcatel-Lucent won the trial and $1.52 billion in damages, but the judge granted[17] Microsoft's motion for judgment and new trial.[18][19] Alcatel-Lucent says it will appeal.[20][dead link]

In the second part of the case, the judge ruled that Microsoft had not violated Alcatel-Lucent's patents relating to speech recognition and the case was therefore dismissed before going to trial. Alcatel-Lucent intends to appeal.[21][22]

The third part of the case, involving several user interface-related patents, is scheduled to begin on 21 May 2013.

Additional patent infringement cases, some filed by Microsoft and some filed by Alcatel-Lucent, are pending in the U.S.

Head office

Former Alcatel-Lucent head office

Alcatel-Lucent has its head office in the 7th arrondissement of Paris, France since June 2010.[23] Its previous head office, in the 8th arrondissement of Paris, built between 1912 and 1929, was renovated in 1998. During the renovation the building was decorated with a theme of the cosmos and time.[24]


  1. ^ a b c d e f "Annual Report 2010". Alcatel-Lucent. Retrieved 13 April 2011. 
  2. ^ "Alcatel-Lucent announces Chairman Serge Tchuruk and CEO Pat Russo to step down" (Press release). Alcatel-Lucent. 2008-07-29.!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4x3tXDUL8h2VAQAURh_Yw!!?LMSG_CABINET=Docs_and_Resource_Ctr&LMSG_CONTENT_FILE=News_Releases_2008/News_Article_001159.xml. Retrieved 2009-04-28. 
  3. ^ "Alcatel-Lucent fourth quarter 2010 earnings" (Press release). Alcatel-Lucent. 2011-02-10.!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4x3tXDUL8h2VAQAURh_Yw!!?LMSG_CABINET=Docs_and_Resource_Ctr&LMSG_CONTENT_FILE=News_Releases_2011/News_Article_002343.xml. 
  4. ^ a b c d e f g h "Alcatel-Lucent History". Company Overview. Alcatel-Lucent. 2009.!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4w3sfQGSYGYRq6m-pEoYgbxjggRX4_83FT9IH1v_QD9gtzQiHJHR0UAdXXZMA!!/delta/base64xml/L3dJdyEvd0ZNQUFzQUMvNElVRS82X0FfNUxJ. Retrieved 2009-04-28. 
  5. ^ "Alcatel-Lucent Merger Timeline". News Features. Alcatel-Lucent. 2006.!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4w39w3RL8h2VAQAGOJBYA!!?LMSG_CABINET=Docs_and_Resource_Ctr&LMSG_CONTENT_FILE=News_Features/News_Feature_Detail_000046.xml. Retrieved 2010-04-25. 
  6. ^ Leers, Kaj (2007-12-18), "Draka to pay 209 mln eur to Alcatel-Lucent for 49.9 pct stake in Comteq JV", Forbes,, retrieved 2010-07-28 
  7. ^ "Dassault Aviation completes the acquisition of Alcatel-Lucent’s stakes in Thales". Press Release. Alcatel-Lucent. 2009.!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4w3MfQFSYGYRq6m-pEoYgbxjgiRIH1vfV-P_NxU_QD9gtzQiHJHR0UAAD_zXg!!/delta/base64xml/L0lJayEvUUd3QndJQSEvNElVRkNBISEvNl9BX0U4QS9lbl93dw!!?LMSG_CABINET=Docs_and_Resource_Ctr&LMSG_CONTENT_FILE=News_Releases_2009/News_Article_001575.xml. Retrieved 2010-04-25. 
  8. ^ "Alcatel-Lucent acquires OpenPlug, a cross-platform mobile software development tool provider". Press Release. Alcatel-Lucent. 2010.!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4w3MfQFSYGYRq6m-pEoYgbxjgiRIH1vfV-P_NxU_QD9gtzQiHJHR0UAAD_zXg!!/delta/base64xml/L0lJayEvUUd3QndJQSEvNElVRkNBISEvNl9BX0U4QS9lbl93dw!!?LMSG_CABINET=Docs_and_Resource_Ctr&LMSG_CONTENT_FILE=News_Releases_2010/News_Article_002180.xml. Retrieved 2010-11-04. 
  9. ^ "Alcatel-Lucent sells Genesys for $1.5bn". October 19, 2011. 
  10. ^ "Regional Groups". Company Overview. Alcatel-Lucent. 2009.!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4w3sfQGSYGYRq6m-pEoYgbxjggRX4_83FT9IH1v_QD9gtzQiHJHR0UAdXXZMA!!/delta/base64xml/L3dJdyEvd0ZNQUFzQUMvNElVRS82X0FfNEox. Retrieved 2009-04-28. 
  11. ^ "ALU MEA". Alcatel-Lucent. Retrieved 2009-06-02. 
  12. ^ a b c d "Operating Segments". Company Overview. Alcatel-Lucent. 2010.!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4w3cTECSYGYRq6m-pEoYgbxjggRX4_83FT9IH1v_QD9gtzQiHJHR0UA8x670Q!!/delta/base64xml/L3dJdyEvd0ZNQUFzQUMvNElVRS82X0FfNEow. Retrieved 2010-06-09. 
  13. ^ "Alcatel-Lucent 7750 Service Router portfolio". Retrieved 2011-08-09. 
  14. ^ "Management Team". About Us. Alcatel-Lucent. 2010.!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4w38vAGSYGZrqb6kShiBvGOCBFfj_zcVP0gfW_9AP2C3NCIckdHRQCIDusE/delta/base64xml/L3dJdyEvd0ZNQUFzQUMvNElVRS82X0FfNEoy. Retrieved 2011-10-31. 
  15. ^ "Innovation". Alcatel-Lucent. 2009.!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4w38TIASYGYRq6m-pEoYgbxjggRX4_83FT9IH1v_QD9gtzQiHJHR0UAD-d6Zg!!/delta/base64xml/L3dJdyEvd0ZNQUFzQUMvNElVRS82X0FfQlRD. Retrieved 2009-04-28. 
  16. ^ "Company Overview page(also look at "facts sheet" tab)". Alcatel-Lucent. 2010. Retrieved 2010-11-10. 
  17. ^ Pleading Paper
  18. ^ "Microsoft faces $1.5bn MP3 payout". BBC News. 2007-02-22. Retrieved 2010-04-23. 
  19. ^ Microsoft hit with $1.5 billion patent verdict | CNET
  20. ^ Bangeman, Eric (2007-08-06). "Judge tosses verdict, $1.52 billion award in Microsoft MP3 patent case". arstechnica. Retrieved 2007-08-07. 
  21. ^ Broache, Anne (2007-03-02). "Microsoft wins in second Alcatel-Lucent patent suit". CNET Retrieved 2007-03-04. 
  22. ^ Montalbano, Elizabeth (2007-03-03). "One Patent Claim Against Microsoft Dropped".,129581-c,legalissues/article.html. Retrieved 2007-03-04. 
  23. ^ "[1]." Alcatel-Lucent Fact Sheet. Retrieved on 17 August 2011 "Headquarters 3 av. Octave Gréard 75007 Paris, France"
  24. ^ "la tête dans les étoiles." Le Journal du Net. Retrieved on 8 July 2010.

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