They need to get rid of wireless. -rumors_twilight • Jun 16, 2013 11:00 AM
June 18, 2013 9:59 pm
Alcatel overhaul aims to cut costs by €1bn
"People familiar with the situation said Mr Combes would aim to end the longstanding strategy of operating across a wide range of telecoms industries and focus on rapidly growing internet-based services as well as the fast fibre and 4G MOBILE NETWORKS."
the qualcomm partnership is important for alcatel lucent. this partnership will allow alcatel lucent to better develop their LTE infrastructure allowing for high quality 4G mobile voice service.
in america, 4G voice service is not yet available to so called smartphone users. the reasons 4G voice is not commercially available are interrelated. one important reason are the chips currently used in smartphones. the current LTE chips use twice the battery power for voice calls as 3G chips. in order to extend LTE handset battery life, their chips need to be redesigned and to optimize this power consumption, their chips need to be redesigned in collaboration with the build-out of LTE (i.e., smallcells) infrastructure itself.
high quality LTE infrastructure includes 4G voice service and 4G voice service has high profit margins. this is why the qualcomm partnership is important to alcatel lucent.
re: Qualcomm to acquire stake in Alcatel-Lucent as part of a far-reaching partnership agreement
rumors_twilight, and what about ditching the wireless division?
ha ha ha ha ha. it sure is nice to know that combes ain't taking your advice!
rumors_twilight: you need to do some more homework....
the financial times
August 5, 2013
the EU trade commissioner has previously told member states he had gathered “solid evidence” that Beijing had supplied ILLEGAL SUBISIDIES to China’s largest telecom network equipment manufacturers, Huawei Technologies and ZTE Corp.
tell us gosmoke....
LOL....what does a stake mean.....the way it reads in the press, the stake is an open market buy.....HOW DOES THAT SPECIFICALLY HELP ALU'S LIQUIDITY PROBLEMS?
Oh gee...it doesn't.
They do need to get rid of wireless....
ASSUMING that the analysts projection of an INSTANT 9% net operating margin for having done so, as I recall, would prove correct....
In that scenario, GETTING RID OF WIRELESS WOULD EXPLODE THE VALUE OF THE STOCK....MASSIVELY....
But I guess you don't want that....you are happy with tiny incremental improvements in the stock price.....
You were an idiot then...and still are....LOL
The breakup of ALU will be great for shareholders and create value. They should have broken out the landline and the wireless business a long time ago. I will keep my money in the wireless business, I have not had a landline for 10 years now. Landline business is very much like the PC business, dying on the vine. The wireless business will be the most marketable side of the business any way. They will need to go to GS and slit the loan so the wireless patents stay with the wireless side.
Spinning off wireless was a very good solution.
Especially as JP MORGAN estimated that by doing so it would result in a 9.7% operating margin.
So yeah,...NO S~H~I~T.....,.getting rid of wireless was a good idea.
OR ARE YOU SAYING THAT A 9.7% OPERATING MARGIN IS A BAD THING?
Lol. I guess you don't like good margins or profitability.
Bottomline: I DON'T CARE HOW ALU RETURNS TO PROFITABILITY. And there is certainly more than one path to achieve that goal. Cutting 10,000 employees, if the early report is true.....WORKS JUST FINE. And by the way, reports imply that Michel will also cuts dead product weight (old products that no longer sell) from, you guessed it, the Wireless unit.
gosmokeadoobie • Jun 16, 2013 5:12 AM
Revenues for the Wireless division (Q1 2013)
Revenues for the Wireless division were Euro 966 million, an increase of 4.9% from the year-ago quarter. Within Wireless, we witnessed growth in LTE and RFS, which includes cable, antenna and tower systems, that was partially offset by an overall decline in 2G/3G technologies. Our LTE business reached its highest level of revenues ever, as network deployments in the US continue to drive growth. Elsewhere around the world, we signed a number of new LTE contracts including Etisalat in Sri Lanka and unveiled lightRadio™ Metro Radio with China Mobile, which will help accelerate deployment of 4G TD-LTE technology across China.
Take a look at the Goldman material, I think page 34, and the fact that annual Wireless revenue IS PROJECTED BY ALU to drop by 900M Euros from end of year 2011 to end of year 2015......Hmmmm?
Your 4.9% increase in 1Q13 wireless sales is looking pretty weak, isn't it? LOL.
And what about that Light Radio, with 46 installations, and yet we never hear about revenue....could it be like Nomura Securities pointed out....that small cells have a low Average Sale Price, and suffer from diseconomies of scale, and high maintenance and backhaul costs. I guess you overlooked that fact. Hmmmm?
Or how about the fact that ALU relies heavily upon the US market when it comes to LTE.....and that the LTE upgrade cycle in beginning to wind down. Hmmmm?
Oh...and I am wondering why you failed to remind us that a big reason for the 4.9% jump in 1Q13 wireless revenue WAS UNEXPECTEDLY STRONG SALES of legacy CDMA products....which is unlikely to repeat. Hmmmm?
SO YOU BET....GETTTING RID OF WIRELESS....AND FINDING ALU WITH A 9.7% OPERATING MARGIN ACCORDING TO JP MORGAN, IN A YEAR OR TWO, IS A GREAT IDEA.
But it is not the only idea.
Lets just hope that the details of the early press hold up tomorrow.....
If so, at least ALU has a fighting chance.