Alcatel-Lucent transfers optics R&D to Italy's SM Optics

Alcatel-Lucent (Euronext Paris and NYSE: ALU) has agreed to transfer its research and development activity related to optical multi-service node (OMSN) platforms to SM Optics, a subsidiary of SIAE MICROELETTRONICA.

SM Optics is a startup that was spun out of Alcatel-Lucent on October 1, and is now 85% owned by SIAE MICROELETTRONICA and 15% owned by its management.

The transaction has come about as a result of Alcatel-Lucent's shift plan, which sees the company focus on next-generation networking and access products, and divest all non-core activities (see "CEO Combes makes case for Alcatel-Lucent's shift").

As part of the transfer, 256 specialized R&D engineers and technicians currently based at Alcatel-Lucent's site in Vimercate, Italy, will be integrated into the SM Optics team. The platforms covered by the deal include the 1850 Transport Service Switch (TSS) product family and related network management systems (see "Alcatel-Lucent touts T-MPLS support on 1850 TSS"). Under the terms of the agreement, Alcatel-Lucent will maintain responsibility for product strategy, manufacturing, and market-facing activities related to the technologies concerned. The supply agreement covers a five-year period.

In a second phase, 110 specialized R&D engineers and technicians currently based at Alcatel-Lucent's sites in Shanghai and Chengdu, China, will be integrated in another SIAE MICROELETTRONICA joint venture company in China. China Huaxin, which has already picked up Alcatel-Lucent's enterprise business, will be the partner there (see "Alcatel-Lucent sells enterprise business to China Huaxin").


"Through this transfer of R&D operations to SM Optics, Alcatel-Lucent will be able to maintain its full support for customers, leveraging the valuable experience and specialist expertise of the teams involved while ensuring future employment opportunities for those involved. At the same time, Alcatel-Lucent in Italy will focus on the strategic development of next-generation networking and access technologies, including WDM and wireless transmission," said Roberto Loiola, CEO and managing director of Alcatel-Lucent Italia.

Romano Valussi, a board member of SM Optics added, "We are delighted with the agreement reached with Alcatel-Lucent, a major partner in the industry. The agreement enables the new company to maintain and enhance Alcatel-Lucent's huge installed base. In addition, thanks to the R&D agreement, we will reinforce our end-to-end capability which is a core strength of SIAE MICROELETTRONICA."

For more information on multiservice switch platforms and suppliers, visit the Lightwave Buyer's Guide.