Lucent Technologies
LUCENT TECHNOLOGIES
Executive Summary
Lucent Technologies is a global leader in communications and software development. This report briefly overlooks its evolution, its achievements since its inception and its mission and targets. Born as a result of a spin-off of a unit of AT&T and relying on Bell Laboratories for its innovations, Lucent has expanded and grown at a tremendous rate in a very short time.
Introduction
Lucent Technologies Inc. was formed in November 1995, combining units of AT&T with that of Bell Labs. Lucent develops and manufactures communications systems, software and products. Lucent sells public and private communications systems, supplying systems and software to most of the world's largest communications network operators and service providers. It also deals in microelectronic components for communications applications. Bell Laboratories conducts Lucent's research and development.
Lucent’s Evolution
In 1869 Elisha Gray and Enos Barton formed Gray & Barton in Cleveland, Ohio. In 1881, it was acquired by American Bell and Western Electric and it became the production part of all Bell Telephone companies. AT&T bought American Bell in 1899. In 1925, AT&T and Western Electric engineering departments created Bell Labs, which had been combined in 1907.
In February 1996, the systems and technology unit of AT&T renamed itself Lucent Technologies and initiated its separation with an initial public offering of stock issued in April 1996. The spin-off was completed in September 1996 when AT&T distributed its shares of Lucent to AT&T shareholders.
“Lucent is a New York Stock Exchange stock. Lucent pays a dividend. Lucent is a leader in an increasingly important sector of the economy – telecommunications equipment. The only fly in the ointment is that Lucent is a relatively young company in its present form. However, remember that the company’s origins go back a long way as Lucent was formerly the Bell Labs unit of AT&T.” 1
Overview
Lucent provides complete services including software that equips service providers to extend wire line and wireless access, local, long distance and international voice, data and video and cable services. The SPN segment includes the product groups responsible for Lucent's optical networking, switching solutions, access, wireless networks and software products businesses. It also includes the businesses that are focused on the needs of cable television operators, and data networking systems for service providers, as well as the sales and support organizations responsible for offers, sales, distribution, installation and maintenance for service provider customers worldwide.
”Lucent's systems connect, route, manage and store voice, data and video in any combination, and are used for wire line access, local and long distance switching, intelligent network services and signaling, wireless communications, including both cellular and personal communications services (PCS), and high-speed, broadband multi-functional communications. Lucent has a wire line local access installed base (the number of access lines serviced by switches manufactured by Lucent) of approximately 150 million lines.”2
Since its inception, Lucent has become a key player in optical, data, and wireless networking; enterprise solutions, which are web-based, that link networks, both public and private, communications software, professional network design and consulting services; and communications semiconductors and optoelectronics. The company has completed 38 acquisitions of over than $46 billion worldwide, including a $24 billion purchase of Ascend Communications, which made Lucent the principal supplier of data networking equipment for service providers.
