Case Study on Lucent Technologies

Essay by lafdaC+, September 2009

download word file, 12 pages 0.0

Lucent has its roots to a company which has a history of more than 120 years, yes, once it was is a part of AT&T. AT&T and the U.S. Justice Department settle a 1974 antitrust suit. AT&T agrees to divest its local telephone companies. AT&T divided into several business units, including AT&T Network Systems, AT&T Global Business Communications Systems, AT&T Microelectronics and AT&T Consumer Products, which later combine with Bell Labs to become Lucent Technologies.

In September 1995, US-based telecom giant AT&T announced that it would be restructuring itself into three separate companies - a services company, retaining the AT&T name; a products and systems company (later named Lucent Technologies); and a computer company (which assumed the name: NCR).

AT&T proposes forming three separate, publicly traded companies to serve the increasingly divergent business needs of its customers. Lucent Technologies launches its separation from AT&T with an initial public offering that is the then-largest ever on the New York Stock ExchangeIn early 1990 when internet & telecommunication industry was booming in market there was a huge demand for products which will speed up the data & voice transmission through network.

And to develop such products it required really big & huge research & development, to innovate the product as pre market requirements, and it had a strong back of Bell Labs which had more than 28000 patents in technologies related to voice and & data transmission.

At the time it was spun off from AT&T, Lucent was already a major player in many businesses - mobility, data, optical and voice networking technologies, professional network designs and consulting services, web-based enterprise solutions which linked public and private networks, and optoelectronics and communications semiconductors. By 1997, Lucent was the leading telecom equipment maker and was lauded as one of the...