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Dec. 7, 2008

On Dec. 12, Alcatel-Lucent CEO Ben Verwaayen said he will unveil a new plan that is geared to turn around the fortunes of the world’s largest telecom equipment maker.

Wireless is expected to be a big part of that plan.

Despite pressure from some investors to close up the wireless division of the business, Verwaayen said during a presentation on Dec. 4 in Paris that the company will continue with the R&D of wireless products.

Verwaayen said "it simply isn't true at all that we are leaving mobile. As much as some would like us to abandon our wireless efforts, we will do exactly the opposite. And you can take that to the bank...”

For the third quarter, Alcatel-Lucent posted a net loss of $51 million. Analysts had expected the company to lose at least $80 to $90 million.

Alcatel-Lucent has also undergone some important changes in its leadership. Verwaayen was hired in September to replace Patricia Russo. Pat Russo was CEO of Lucent in the U.S. before it merged with Alcatel.

And then Phillippe Camus replaced Serge Tchuruk as chairman.

Since after the merger, Alcatel-Lucent has posted seven straight quarters of losses. The company has suffered greatly from internal clashes, major disagreements at the executive level and overall stiff competition in the wireless infrastructure market at the global level.

On Friday, Verwaayen will unveil the company’s strategic plans for moving forward. During the announcement of the company’s third quarter results, Verwaayen said the plan is intended to return the company to profitability.

Verwaayen said the company will continue with its R&D despite the global economic turmoil that has shaken all stock exchanges in the past two months, and the growing uncertainty in consumer markets.

He added that his company will be ready with network products when 4G-LTE is ready for deployment sometime in the fourth quarter of 2009.

Verwaayen closed by saying “in the wireless segment, not doing research and development is like shooting yourself in the foot. We are not going to cut off our lifeline to the future. Certainly not under my watch.”

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Source: Alcatel-Lucent.