Alcatel's Reinaudo predicts continued consolidation

17 May 2002 -- Speaking at KMI's 6th Annual Conference on Fiberoptic Markets in Europe, Dr. Christian Reinaudo, president of Alcatel Optics Group, today forecast continued consolidation in the global fibre optics industry.

May 19th, 2002

17 May 2002 -- Speaking at KMI's 6th Annual Conference on Fiberoptic Markets in Europe, Dr. Christian Reinaudo, president of Alcatel Optics Group, today forecast continued consolidation in the global fibre optics industry.
He predicted that only "one or two big players per region" in the US, Europe and Asia would survive the current downturn in the telecommunications industry.

Reinaudo said pro-active consolidation was necessary if the industry hopes to return to profitability anytime soon. Alcatel, he said, would clearly be one of the companies to consolidate by acquiring companies, and not be a "consolidatee." However, he declined to comment on any acquisitions the company might be currently considering. "Anything I say here today will just drive up prices," he said.

Reindaudo also said outsourcing was always an option for Alcatel, as it cuts costs and passes on savings to its customers, but he said the company had no plans to abandon its strategy of vertical integration. "Most of our customers require end-to-end service," he said, from components and cable to systems.

About 25% of Alcatel's 25.3 billion euros in revenues were derived from optics in 2001.

Al Furst, contributing editor, Lightwave Europe

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