Channel Ponders Lucent-Alcatel Merger

Alcatel’s planned merger with Lucent Technologies should boost awareness of the Paris-based company in North America, but some partners question the future of the channel at the combined outfit.

Alcatel and Murray Hill, N.J.-based Lucent last week announced the $13.4 billion stock deal. Lucent Chairman and CEO Patricia Russo will become the CEO of the combined company, which will have approximately $25 billion in revenue. Alcatel Chairman and CEO Serge Tchuruk will become non-executive chairman.

The companies are not yet providing details on how the proposed merger would impact their channel strategies, an Alcatel spokesperson said.

With Lucent’s focus on wireless service provider equipment, the merger ups Alcatel’s ante in the carrier infrastructure market.

Several solution providers said they expect the merger’s impact on their Alcatel enterprise business to be positive and that it does not likely signal diminished focus on Alcatel’s enterprise efforts.“The merger may help us in other aspects, having a stronger presence in North America with Lucent,” said Ron Goodband, COO of Advance2000, a Buffalo, N.Y.-based Alcatel partner.

However, Lucent partners are approaching the merger with more caution. Lucent has a small channel effort that has seen cutbacks over the past year, while Alcatel is not known for the strength of its channel, Lucent partners said.

“Alcatel is not exactly a channel-friendly company, so that concerns us,” said Maggie Petro, vice president of services at Solunet, a Lucent partner in Miami. Solunet has a good relationship with Lucent, but recent downsizing in the vendor’s channel support infrastructure did have a negative impact for the partner, Petro said.

“Alcatel is not known for being friendly to the channel ... and Lucent is only marginally friendly to the channel,” said another Lucent channel partner, who asked not to be identified. “I have concern about their supporting any channel going forward,” the partner said.