Alcatel-Lucent targets submarine network unit IPO for 2015

July 31, 2014
Alcatel-Lucent plans to spin out its submarine network equipment and services business into a separate publicly traded company. Management at the optical transport systems and router vendor hope to launch an IPO for the Alcatel-Lucent Submarine Networks unit in the first half of next year.

As part of its announcement of second quarter 2014 financial results, Alcatel-Lucent (Euronext Paris and NYSE: ALU) revealed that it plans to spin out its submarine network equipment and services business into a separate publicly traded company. Management at the optical transport systems and router vendor hope to launch an IPO for the Alcatel-Lucent Submarine Networks unit in the first half of next year.

The plan puts to rest speculation among analysts over what Alcatel-Lucent would do with the undersea network business as part of CEO Michel Combes’s restructuring effort, called "The Shift Plan" (see "Alcatel-Lucent shifts and optical transport, FTTx shift with it" and "CEO Combes makes case for Alcatel-Lucent's shift").

Alcatel-Lucent intends to retain a majority stake in the new entity. The submarine network systems company will use its public capitalization to fund its current telecom-related operations as well as expansion into services and equipment for the oil and gas industry.

Alcatel-Lucent reported revenues of 3.279 billion euros for the quarter, an improvement of 0.7% year-on-year when comparing like business activities. Gross margin was 32.6%. However, the company’s Core Networking revenues declined 10% versus the year-ago quarter. IP Transport revenues dropped 6.2% year-on-year, although Access Network revenues climbed 9.5% versus 2Q13.

For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.

About the Author

Stephen Hardy | Editorial Director and Associate Publisher

Stephen Hardy has covered fiber optics for more than 15 years, and communications and technology for more than 30 years. He is responsible for establishing and executing Lightwave's editorial strategy across its digital magazine, website, newsletters, research and other information products. He has won multiple awards for his writing.

Contact Stephen to discuss:

  • Contributing editorial material to the Web site or digital magazine
  • The direction of a digital magazine issue, staff-written article, or event
  • Lightwave editorial attendance at industry events
  • Arranging a visit to Lightwave's offices
  • Coverage of announcements
  • General questions of an editorial nature

Sponsored Recommendations

Advances in Fiber & Cable

Oct. 3, 2024
Attend this robust webinar where advancements in materials for greater durability and scalable solutions for future-proofing networks are discussed.

How AI is driving new thinking in the optical industry

Sept. 30, 2024
Join us for an interactive roundtable webinar highlighting the results of an Endeavor Business Media survey to identify how optical technologies can support AI workflows by balancing...

Balanced vs. Unbalanced PON: Key Differences and Deployment Impact

Nov. 7, 2023
Learn how to choose the right PON architecture for your network.

The Pluggable Transceiver Revolution

May 30, 2024
Discover the revolution of pluggable transceivers in our upcoming webinar, where we delve into the advancements propelling 400G and 800G coherent optics. Learn how these innovations...