The $34 billion merger of Lucent and Alcatel, if approved, will unleash a wave of mergers in the telecom equipment sector. Will Cisco merge with Motorola? What will happen to a host of smaller companies? This and more issues are covered in my story, Life after Lucent: telecom feeding frenzy, which is up on CNN Money website.
“This proposed deal is reflection of the resugence of the incumbents not only in the U.S., but worldwide,” says Muayyad al-Chalabi, principal at Boston-based telecom consulting firm Adventis. “This (Lucent-Alcatel merger) could create a domino affect and I hope it does,” says Pip Coburn, chief strategist and principal at Coburn Ventures, a telecom research firm.
The analysts say that Cisco will have to make a move, and going after wireless, by merging with Motorola might be its best bet.
Ericsson, Nokia, and even Nortel are in better shape than ever for making acquisitions, says Coburn. Nortel’s new CEO, Mike Zafirovski, until recently the No. 2 executive at Motorola, could be looking to bulk up his company’s offerings. On his menu could be names like Juniper, Ciena, Tellabs, Sonus Networks and Foundry Systems.