Alcatel in Mobile

For years, Alcatel has tried to be in the top three vendors in this market. But we have to acknoledge that it missed the three first steps in the mobile market: analog, 2G and 3G. It was not out, however, and wa struggling to stay in touch with the market leaders. The two recent deals (merger with Lucent and deal with Nortel) will give it a more powerful position in the market. If Ericsson and Nokia Siemens are far ahead with about 30% market share each, Alcatel could be a good third with more than 16% market share. The deal with Nortel gives Alcatel some 14 additional customers, almost doubling its 3G customer base. The deal seems relatively favorable to Alcatel: the price is reasonable, there will be transfer of skilled people and R&D , but it could also give Alcatel more headache with now three platforms to rationalize (Alcatel, Lucent and Nortel). Could be costly and complex.