Alcatel-Lucent feared losing revenue due the partnership of teles

The partnership between TIM and Oi operators to build a unique network of fourth generation (4 g) mobile services in Brazil, as anticipated by the value last month, can affect sales of Alcatel-Lucent in Latin America, said the President of Alcatel-Lucent in Brazil, Jonio Foigel.
Along with Ericsson and Nokia Siemens, Alcatel-Lucent is a supplier of Hi for 4 g network. By agreement between the Talbot, Oi will install the 4 g network in half the cities planned in 2013, and TIM in the other. According to it the value, this Division by half could influence the slowing growth of Alcatel-Lucent in Latin America.
"We grew 17% last year in Latin America and, this year, we will grow 6%," said the President of Alcatel-Lucent for Latin America, Osvaldo Di Campli. Still, according to the Executive, the percentage foreseen for this year represents twice the estimated evolution for the industry of telecommunications network infrastructure in the countries of the region. "We're ' taking ' marketplace of our competitors," said Di Campli, referring to Nokia Siemens and Ericsson. "The Swedes [Ericsson] remained stable in Latin America and the Finns [Nokia Siemens] registered a fall of 6%," he said.
According to Di Campli, Latin America has been growing for nine consecutive quarters, despite the negative results of Alcatel-Lucent. In 2012, the French multinational recorded a loss of € 1.37 billion (compared with a loss of € 31 million in 2011) and 5.8% drop in sales to € 14,45 billion. The region is the sales leader in North America (40%), followed by Europe (27%) and Asia Pacific (17%), while Latin America, Middle East and Africa account for 16%.
Financial results led to the resignation of the Chief Executive of Alcatel-Lucent, Ben Verwaayen, the Dutchman who was in charge of the company since 2002. The new President, who takes over on April 1, is the Frenchman Michel Combes, who was the Chief Executive of Vodafone in Europe.
With a reputation for cutting costs in companies, Combes will have to implement the restructuring plan announced by Alcatel-Lucent in September. According to the company's program, the goal is to dry € 1.25 billion in costs and dismiss 5.5 thousand employees around the world, including 30% of the Executive Body, said Di Campli. "We are still studying how such measures will affect Latin America," he said.
The infrastructure partnership among the telecom operators in Brazil will be able to accelerate the strategy of Alcatel-Lucent to become increasingly a consultancy for the teles, rather than just provide technology and equipment.
"It is very difficult for an operator to invest in three networks at the same time [2 g, 3 g and 4 g]," said Foigel. "In some ways, it is natural that the operators are in this movement [to share]."
Foigel refers not only to the TIM and Oi's initiative to build a single mobile network with technology of 4 g Long Term Evolution (LTE), but also available to the Phone/live from the Course to share the frequency range, as anticipated by the value on Monday.
Even before signing the LTE network supply agreement with Alcatel-Lucent in October, Oi had informed the manufacturer of possible partnership with TIM. Foigel said that at first the recipe will fall by half, which might have an impact even on the company's results this year.
"But there are a number of opportunities. Let's go on to have with TIM [that in 4 g is met by Ericsson, Nokia Siemens and Huawei], "said Foigel. "There are a number of application services that need to be acquired by operators and now we have the chance to provide them for TIM." The idea is to offer metrocélulas-concept also released by Alcatel-Lucent to complement the coverage of the networks and that refers to small base stations.
The first metrocélulas will be provided to the Brazilian market in the third quarter of this year. Are devices that can be installed on facades of buildings and light poles, for example, occupying little space. "We're doing tests with all carriers," said Foigel.
The initiative to work closer to the telcos and seek to meet their specific needs, is an attempt by Alcatel-Lucent to regain lost market for not having invested in 3 g. "The demand by the service [3 g] did well at the time of our integration with Lucent and couldn't keep up with the interest of the market," said Foigel. Today, the story is different, says the Executive. "Our customers have come to guide our development. It's almost a process of co-creation ".