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Alcatel-Lucent Message Board

  • romangerasch romangerasch Mar 14, 2013 3:32 AM Flag

    Read it here first: Alcatel-Lucent Wins Major Contract From TataComm

    MARCH 14, 2013

    European equipment vendor, Alcatel-Lucent (NYSE: ALU) has procured a major deal from Tata Communications Ltd. (NYSE: TCL) spanning 51 countries for a period of three years.

    As part of their modernisation process, Tata Communications was looking at replacing its legacy equipment which would help them to bring down the OPEX. "Besides that they were also looking at offering more resilient performance to their enterprise customers," says a well placed industry source on condition of annoymity.

    While the financial scope of the deal is unclear, it is safe to say that the deal will add considerable weight to Alcatel's portfolio.

    Besides Alcatel Lucent, the company evaluated three other vendors, Huawei Technologies Co. Ltd. , Cisco Systems Inc. (Nasdaq: CSCO) and Juniper Networks Inc. (NYSE: JNPR).

    "The selection of the vendor was a rigorous process spanning over nine months. The process also involved dialogue between Research and Development departments of the two companies. Tatas wanted to know the product roadmap in detail before taking a final call," adds the source.

    An element of go-to-market might have also played out in this deal. Since Cisco, which was handling this business before Alcatel got the deal, is a prominent player in the enterprise segment and might have helped Tata Communications in getting additional business from their clients. This would definitely go against Alcatel since this player is not so strong in the enterprise space.

    Alcatel is believed to have already installed the nodes in 10 countries including India. "There is a huge scope of expansion in this business and the deal is likely to be extended to other countries as well," says the industry source.

    Mumbai based Tata Communications was founded as VSNL (Videsh Sanchaar Nigam Limited) in 1986 and owns a submarine cable network, a Tier-1 IP network. It also operates one of the top largest data centers in Pune and has a cable network of more than 235,000 kilometers.

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