Alcatel-Lucent in “Discussions”

You have to wonder what Nortel CEO Mike Zafirovski thinks about reports that Alcatel and Lucent are in discussions about $34-billion merger? While they will only admit to be talking, a deal could have huge ramifications on the telecom equipment landscape. Nortel, for example, would find itself with a formidable competitor in “Alcacent”, and the speculation about Nortel doing a dealing itself – possibly with Siemens – could intensify. The Alcatel-Lucent deal, which has been rumoured before, is the kind of itransacton the equipment industy has expecting for the past several years because it is widely believed the market has to consolidate. So far, however, everyone has been afraid to make the big leap. That said, there have a series of joint ventures (Nortel-Huawei, for example) established, which suggests there’s a lot of dating happening but everyone is still commitment-phobic and refuses to get married. Maybe we’ll hear what Mike Z. thinks about the Alcatel-Lucent deal when he meets the press next month at the CTIA wireless conference in Las Vegas.

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