PARIS: Alcatel Lucent is focused on its cost saving and repositioning plan and not on industry consolidation, its chief executive said in a newspaper interview after rumours this week of a tie-up with Finland’s Nokia.
“There’s no question of
consolidation. There have already been phases of
consolidation among telecoms equipment makers, just as there have been phases of organic growth,” Michel Combes told Le Figaro in response to a question about the rumors which
lifted Alcatel shares earlier
this week.
“Time will tell if other developments are necessary. My single and unique objective is to stayed focused on execution... (of the plan) which will allow us to return to the premier league,” he said in a post-results interview.
Combes also came out in favour of allowing more consolidation in the world of telecom service providers — his industry’s main clients. He said investment in high-speed Internet depends on having “powerful” operators. Governments and industry players in France and elsewhere have called for a relaxation of EU antitrust policy with regard to the sector.
Alcatel announced a reduced first-quarter net loss earlier on Friday as it cut costs and trimmed unprofitable contracts.
Combes’ plan, put in place last June, is aiming for 10,000 job cuts, €1bn of asset sales, €1bn in cost cuts, and a repositioning to focus the group on fewer products.
Reuters
