The financial picture for major carriers is much more improved in the last two years as evidenced by their reduced debt loads, restructured balance sheets, and restored free cash flows, said
Hubert de Pasquidoux, Chief Operating Officer, Alcatel North America & CEO, Alcatel Canada, speaking at the Lehman Brothers' Fifth Annual T3 Conference in New York. However, the carriers must keep their eyes on the top line of their balance sheets, as fixed voice revenues continue to erode, mobile voice business are maturing, and new data services often cannot make up the difference. Instead of simply looking for CAPEX savings, today's marketing strategies must emphasize the reduction in customer churn, building customer loyalty and increasing both ARPU and network usage. De Pasquidoux outlined three main drivers in future communications markets: Broadband & Entertainment, Portable Services, and End-customer ownership. Alcatel believes broadband has already become a mass-market phenomenon.
Alcatel's response to the changing market conditions can be summarized as follows:
- downsize in-line with the market contraction
- maintain and expand its global reach
- overhaul company processes to reflect a "One Company" vision
- optimize the supply chain and outsource manufacturing
De Pasquidoux said Alcatel's goal is to evolve from a "carrier equipment supplier" to a "communications solutions provider." The company is especially keen to maintain its leading position in broadband access. He also predicts that the trend towards telecom outsourcing will continue.
http://www.alcatel.com
