{"id":5079,"date":"2006-12-09T11:41:13","date_gmt":"2006-12-09T11:41:13","guid":{"rendered":"http:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/e-commerce\/alcatellucent.html"},"modified":"2006-12-09T11:41:13","modified_gmt":"2006-12-09T11:41:13","slug":"alcatellucent","status":"publish","type":"post","link":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/technology\/alcatellucent.html","title":{"rendered":"Alcatel-Lucent"},"content":{"rendered":"<div style=\"MARGIN: 0in 0in 0pt\"><img decoding=\"async\" alt=\"alcatel-lucent\" hspace=\"5\" src=\"http:\/\/images.tmcnet.com\/usubmit\/images\/2006\/dec\/logo.jpg\" align=\"left\" vspace=\"5\" \/>I like the new Alcatel-Lucent logo. It makes me think of a cross between an airline and an ecommerce company. I do really like the way the A and L come together as one. On a separate note the new company&#8217;s credit rating was reduced to junk by Fitch ratings. <\/div>\n<div style=\"MARGIN: 0in 0in 0pt\">&nbsp;<\/div>\n<div style=\"MARGIN: 0in 0in 0pt\">According to Fitch, The ratings reflect integration risks of the merger, as well as likely challenges in achieving the company&#8217;s targeted $1.7 billion of annual cost reductions within three years.<\/div>\n<div style=\"MARGIN: 0in 0in 0pt\">&nbsp;<\/div>\n<div style=\"MARGIN: 0in 0in 0pt\">Demand in the industry is also likely to remain volatile, driven by carrier consolidation as well as more concentrated and uneven carrier capital spending, Fitch said.<\/div>\n<div style=\"MARGIN: 0in 0in 0pt\">&nbsp;<\/div>\n<div style=\"MARGIN: 0in 0in 0pt\">Obviously these are all valid points but one area not discussed in this <a href=\"http:\/\/today.reuters.com\/news\/articleinvesting.aspx?type=bondsNews&amp;storyID=2006-12-08T172408Z_01_N08399435_RTRIDST_0_ALCATEL-FITCH.XML\"><font color=\"#800080\">article<\/font><\/a> about the company&#8217;s debt rating is the insatiable demand worldwide for many of the technologies the new Alcatel-Lucent sells. For example, wireless, IMS and IPTV to name a few. <\/div>\n<div style=\"MARGIN: 0in 0in 0pt\">&nbsp;<\/div>\n<div style=\"MARGIN: 0in 0in 0pt\">Still carrier consolidation has a way of reducing margins. Fitch thinks this new rating should remain relatively stable meaning no change for a few years or so.<\/div>\n<div style=\"MARGIN: 0in 0in 0pt\">&nbsp;<\/div>\n<div style=\"MARGIN: 0in 0in 0pt\">Although I haven&#8217;t heard anything negative about the merger from insiders I can imagine it is a great challenge to integrate these companies as they have vastly different corporate cultures. It doesn&rsquo;t mean it can&#8217;t be done it just means it is going to be tough. Still the brand equity in this new company is so great it is worth noting the new Alcatel-Lucent may get away with a stumble or two until it gets the integration complete.<\/div>\n","protected":false},"excerpt":{"rendered":"<p>I like the new Alcatel-Lucent logo. It makes me think of a cross between an airline and an ecommerce company. I do really like the way the A and L come together as one. On a separate note the new company&#8217;s credit rating was reduced to junk by Fitch ratings. &nbsp; According to Fitch, The<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[171,179,202,215,212,199,218,156,189,211,118,190,191,219,175],"tags":[1629,225],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/posts\/5079"}],"collection":[{"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/comments?post=5079"}],"version-history":[{"count":0,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/posts\/5079\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/media?parent=5079"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/categories?post=5079"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/tags?post=5079"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}