Alcatel hopes to help Celcom, Maxis in mergers

  • Business
  • Wednesday, 25 Jun 2003

ALCATEL Network Systems (M) Sdn Bhd is in discussions with Celcom (M) Bhd and Maxis Communications Bhd in the hope of assisting in their merger integration process.  

The company has also made presentations to Telekom Malaysia Bhd to help the incumbent on solutions for its fixed line network, Alcatel country senior officer John Quaeyhaegens said. 

“We are presenting our views and solutions (on the respective merger integration). There are detailed discussions and presentations on what we think is the best and most economical way for them to merge their networks irrespective of selling equipment,'' he told a briefing in Kuala Lumpur yesterday.  

And although the “response was positive'' from the carriers, he could not say if Alcatel would clinch any deals at this juncture. Celcom bought over TM Cellular Sdn Bhd from Telekom to merge it with its own cellular operations to create larger mobile operation. Similarly, Maxis has bought over TimeCel Sdn Bhd, the cellular arm of TIME Dotcom Bhd.  

Alcatel of France, which is transforming itself from a product focused- to customer-focused company, believes it can assist telcos globally by providing total solutions.  

It is shaping up to become a provider of end-to-end communication solutions that enable carriers, service providers and enterprises to deliver content to any type of user, anywhere in the world.  

The transformation beginning this year is expected to be completed by year-end. With its new approach, it has managed to secure a NZ$120mil contract for a total revamp of Telecom New Zealand.  

Alcatel is hopeful of securing more deals worldwide as global telcos “like Alcatel's new approach'', Quaeyhaegens said. The new approach would see Alcatel grouped into three core areas - fixed, mobile and private communications.  

Quaeyhaegens said the changing dynamics of the market place had forced Alcatel to transform into not just a telecoms infrastructure provider but one which assists telcos globally to optimise their service offerings and revenue streams.  

Previously, carriers globally were concerned about investing heavily to build networks in anticipation of strong demand. There has certainly been over-investment the past few years in the sector globally, resulting in excess capacity. “We see the need to help carriers find ways to face the challenging environment, to create value added in services and applications and re-organise their staff or their approach to their customers,'' he added. 

Quaeyhaegens said the company's customer solutions focus approach aimed to convert ideas into technologies and technologies into profit generators for customers, thus ensuring Alcatel's continued strength in the products that comprise its networking technologies and establishing a services capability that involved converting networking technologies into revenue-generating solutions for customers.  

“In so doing, Alcatel is no longer concerned with selling equipment and is willing to work with third party suppliers just to ensure it is able to provide the best solution to its customers,'' he said.  

Alcatel of France reported 16.5bil euros in sales last year, of which about 13.5% was invested in research and development. It has 130,000 employees but with the transformation, this number will be reduced to 60,000 by year-end.  

It has activities spanning more than 130 countries globally. 

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