Alcatel refocuses from four to three solutions-oriented divisions

23 December 2002 -- Alcatel is reorganising its four existing divisions -- Carrier Networking; Optics; e-Business; and Space and Components -- into three market-focused divisions: Fixed communications; Mobile communications; and Private communications.

23 December 2002 -- To focus on "future growth prospects", as of 1 January, Alcatel is reorganising its four existing divisions -- Carrier Networking; Optics; e-Business; and Space and Components -- into three divisions focused on market segments covering voice and data communications:
-- Fixed communications (where Alcatel claims to be world leader in broadband);
-- Mobile communications (where Alcatel says it will leverage its momentum in 2G and 2.5G markets into the 3 G space);
-- Private communications (which will address markets other than telecoms carriers, such as enterprise, space and large institutions).

Each segment will be addressed by a dedicated business group which will be organised to enhance capabilities in:
-- developing end-to-end network solutions optimising and guaranteeing performance and quality of service;
-- offering a range of services to reduce operating expenses, based on long-term partnerships,
-- designing communication solutions to provide new revenue streams with a broad range of value-added applications.

"The implementation of this new organization is also an opportunity to better ensure a greater efficiency in the execution of the undergoing restructuring plan. It will reduce costs while positioning the group as a solutions-oriented company, fully market-driven", says CEO Serge Tchuruk.

Alcatel already plans to cut its workforce another 28% from 84,000 at the end of June 2002 to 60,000 by the end of 2003. The ongoing process is being undertaken country by country and product line by product line.

Based on current sales trends, Alcatel's revenue would be about 40% in fixed and 30% in both mobile and private communications.

www.alcatel.com

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