2010

annual
report
 2010
annual
report

the long-trusted partner of service providers,

enterprises, strategic industries and governments
around the world, alcatel-lucent is a leader

ideas for
in mobile, fixed, ip and optics technologies, and
a pioneer in applications and services.
alcatel-lucent includes Bell labs, one of
the world’s foremost centers of research and
innovation in communications technology. tomorrow
with operations in more than 130 countries
and one of the most experienced global services
organizations in the industry, alcatel-lucent
is a local partner with global reach.
the company achieved revenues of 16 billion euros
in 2010 and is incorporated in france and
headquartered in paris.

contents
the speed thoughts book the strAtegY book
02 twelve trends in telecoms 54 networks
04 speed thoughts 60 applications and solutions
62 Bell laBs/innovation
the busINess book 72 fast forwards
cr spotlight //
74 people
32 letter from the chairman

the speed thoughts book

the busINess book

the strAtegY book

look for this icon 76 strategic overview
34 2010 key figures
to find news about 78 interview
Alcatel-lucent's achievements 36 management team
with Ben verwaayen
in corporate responsibility. 38 alcatel-lucent worldwide
Find the full 2010 Cr report online 80 investor relations
at www.alcatel-lucent.com
40 americas
42 europe, middle east, africa
44 asia-pacific
46 strategic industries
47 enterprise
website //
Find more content online at 48 services
www.alcatel-lucent.com 50 operations

01
2010 AnnuAl report
 2010
annual
report

the long-trusted partner of service providers,

enterprises, strategic industries and governments
around the world, alcatel-lucent is a leader

ideas for
in mobile, fixed, ip and optics technologies, and
a pioneer in applications and services.
alcatel-lucent includes Bell labs, one of
the world’s foremost centers of research and
innovation in communications technology. tomorrow
with operations in more than 130 countries
and one of the most experienced global services
organizations in the industry, alcatel-lucent
is a local partner with global reach.
the company achieved revenues of 16 billion euros
in 2010 and is incorporated in france and
headquartered in paris.

contents
the speed thoughts book the strAtegY book
02 twelve trends in telecoms 54 networks
04 speed thoughts 60 applications and solutions
62 Bell laBs/innovation
the busINess book 72 fast forwards
cr spotlight //
74 people
32 letter from the chairman

the speed thoughts book

the busINess book

the strAtegY book

look for this icon 76 strategic overview
34 2010 key figures
to find news about 78 interview
Alcatel-lucent's achievements 36 management team
with Ben verwaayen
in corporate responsibility. 38 alcatel-lucent worldwide
Find the full 2010 Cr report online 80 investor relations
at www.alcatel-lucent.com
40 americas
42 europe, middle east, africa
44 asia-pacific
46 strategic industries
47 enterprise
website //
Find more content online at 48 services
www.alcatel-lucent.com 50 operations

01
2010 AnnuAl report
tweLVe CommANdINg treNds iN TeLeCoMs

1. 2. 7. 8.
eCoNomIes have the world invests step aside, setting a new
a connection speed in ImAgINAtIoN hAL 9000 thumb-speed
every 10 percent increase in broadband
connectivity boosts a country’s gdp
information and communications
technology attracts more research and
your fridge sending temperature
readings to your phone; trains signaling
reCord
200,000 text messages a second—
by 1.2 percent.1 development dollars than any other passengers when to get off: technology
that’s the global average today, with sms
sector.2 is opening up a whole new world of
(short messaging system) communication
automation.
tripling between 2007 and 2010.3

3. 4. 9. 10.
oNe ChAttY …getting chattier shootINg pAst two countries.
planet… bY the mINute cloud 9 300 mILLIoN
with 5.3 billion mobile subscriptions
worldwide,3 wireless has people talking.
there’s no end in sight to the mobile
traffic explosion. By 2015, we’ll hit
the worldwide 'cloud services' market
hit $68 billion in 2010 and by 2014
‘heLLos’
more than 300 million people went
and texting. and surfing. 30 times today’s level.4 will more than double to $149 billion.5
mobile in india and china in 2010.3

5. 6. 11. 12.
if a picture’s You are one giant leap for “wAIt ANd see”
worth a thousand the content mobILe dAtA is not an option
words, VIdeo’s

the busINess book

the strAtegY book

gamers around the world are using
network technologies and other
worth mILLIoNs innovations not only to play together
three years from now, half of
all mobile communication in the world
will be video.4
but also to create a shareable ‘gameverse’
of their own invention.
ip technology is making it easier
and more economical to run wireless
networks driven by data—and is expected
to jump from 6 percent to 75 percent
by 2015.4
information and communications
technology accounts for 2 percent of
the world’s greenhouse gas emissions.
By 2020, that will nearly double to
4 percent—twice the amount of
the aviation sector. the time to take
green action is now.6

1
world Bank. 2 institute for prospective technological studies (the 2010 report on the r&d
in ict in the european union). 3 itu. 4 Bell labs. 3
itu. 4 Bell labs. 5 gartner. 6 greentouch™.

02 03
2010 AnnuAl report 2010 AnnuAl report
tweLVe CommANdINg treNds iN TeLeCoMs

1. 2. 7. 8.
eCoNomIes have the world invests step aside, setting a new
a connection speed in ImAgINAtIoN hAL 9000 thumb-speed
every 10 percent increase in broadband
connectivity boosts a country’s gdp
information and communications
technology attracts more research and
your fridge sending temperature
readings to your phone; trains signaling
reCord
200,000 text messages a second—
by 1.2 percent.1 development dollars than any other passengers when to get off: technology
that’s the global average today, with sms
sector.2 is opening up a whole new world of
(short messaging system) communication
automation.
tripling between 2007 and 2010.3

3. 4. 9. 10.
oNe ChAttY …getting chattier shootINg pAst two countries.
planet… bY the mINute cloud 9 300 mILLIoN
with 5.3 billion mobile subscriptions
worldwide,3 wireless has people talking.
there’s no end in sight to the mobile
traffic explosion. By 2015, we’ll hit
the worldwide 'cloud services' market
hit $68 billion in 2010 and by 2014
‘heLLos’
more than 300 million people went
and texting. and surfing. 30 times today’s level.4 will more than double to $149 billion.5
mobile in india and china in 2010.3

5. 6. 11. 12.
if a picture’s You are one giant leap for “wAIt ANd see”
worth a thousand the content mobILe dAtA is not an option
words, VIdeo’s

the busINess book

the strAtegY book

gamers around the world are using
network technologies and other
worth mILLIoNs innovations not only to play together
three years from now, half of
all mobile communication in the world
will be video.4
but also to create a shareable ‘gameverse’
of their own invention.
ip technology is making it easier
and more economical to run wireless
networks driven by data—and is expected
to jump from 6 percent to 75 percent
by 2015.4
information and communications
technology accounts for 2 percent of
the world’s greenhouse gas emissions.
By 2020, that will nearly double to
4 percent—twice the amount of
the aviation sector. the time to take
green action is now.6

1
world Bank. 2 institute for prospective technological studies (the 2010 report on the r&d
in ict in the european union). 3 itu. 4 Bell labs. 3
itu. 4 Bell labs. 5 gartner. 6 greentouch™.

02 03
2010 AnnuAl report 2010 AnnuAl report
 the worLd of social impact

CommuNICAtIoNs humAN NeCessItIes:

FooD, WAter, SHelter—
IN 2015 AnD BroADBAnD
In every part of the world, high-speed
personal perspectives connectivity has become essential for
social progress and economic prosperity.
We need to close the digital divide or
risk whole countries being left out of
SoCIAl teCHnoloGICAl our SHAreD the world’s connected future.
IMpACt CHAnGe Future
05 09 23
Human necessities: How Fast tHe Future is closer
n the next few years,
Food, water,
sHelter—
and broadband
is your Future?
James Watt
tHan you tHink
Gee rittenhouse i those of us who enjoy
high-speed broadband Jyoti maHurkar-tHombre
12 25 will have access to ever-faster stats: 23 years in the industry
Jyoti Mahurkar-thombre
and smarter applications, devices position: ceo, alcatel-lucent new Zealand &
you ain’t seen
07 guest SpeeD tHouGHt notHing yet and services—wherever we are, pacific islands
looking backward: billions and olivia Qiu whenever we want them.
Favorite saying: “I have not failed, I’ve just found 10,000 ways
india in 2015 billions oF bits
rati thanawala emily nagle Green 27 unfortunately, “those of us” isn’t
that won’t work.” • thomas Alva edison

tHe world everyone.

is my smartpHone
14 Jeong Kim this widening digital divide poses human beings privileged enough people. Crowdsourcing, for exam-
wires? wHat wires? a global problem—one we need to to participate in them. In the com- ple, uses the web to bring togeth-
Wim Sweldens address in a holistic way over the ing years, we’ll use more video. er large communities to help with
16 next five years. We can already We’ll benefit from offerings that specific tasks. Is it less rich when
see that people living on the make our lives easier and more a significant segment of the pop-
time to smarten up
‘have-not’ side are being disad- pleasant by taking into account ulation is excluded by its inability
Basil Alwan
vantaged financially and intellec- where we are and what kinds of to access the Internet? likely so.
18 tually, health-wise and in terms things we prefer. We’re in the

the busINess book

the strAtegY book

europe: of overall quality of life. this
Falling beHind? while the digital ‘haves’ enjoy
Gabrielle Gauthey greater financial freedoms, better
education and health, and green-
20 er lives in increasingly paperless
tHis is not your societies.
FatHer’s network
Marcus Weldon the Internet has connected peo-
ple like never before. Social net-
download the speed thoughts at works are slowly reducing the
www.alcatel-lucent.com/speedthoughts degrees of separation between
midst of a transition to a digital
life in which we can rely on the
network for virtually every
aspect of our lives.
Connecting the unconnected
Yet a large segment of the globe
is not participating in this revolu-
tion. And that means we are all
missing the opportunity to col-
laborate intelligently with those
What if the next brave individu-
als who risk everything for what
they believe is right are not on
the Internet? the recent political
changes in a number of countries
were preceded by disruption of
social media sites, mobile net-
works and, in some cases, access
to the entire Internet. that is
proof positive that networks
•••

04 05
2010 AnnuAl report 2010 AnnuAl report
 the worLd of social impact

CommuNICAtIoNs humAN NeCessItIes:

FooD, WAter, SHelter—
IN 2015 AnD BroADBAnD
In every part of the world, high-speed
personal perspectives connectivity has become essential for
social progress and economic prosperity.
We need to close the digital divide or
risk whole countries being left out of
SoCIAl teCHnoloGICAl our SHAreD the world’s connected future.
IMpACt CHAnGe Future
05 09 23
Human necessities: How Fast tHe Future is closer
n the next few years,
Food, water,
sHelter—
and broadband
is your Future?
James Watt
tHan you tHink
Gee rittenhouse i those of us who enjoy
high-speed broadband Jyoti maHurkar-tHombre
12 25 will have access to ever-faster stats: 23 years in the industry
Jyoti Mahurkar-thombre
and smarter applications, devices position: ceo, alcatel-lucent new Zealand &
you ain’t seen
07 guest SpeeD tHouGHt notHing yet and services—wherever we are, pacific islands
looking backward: billions and olivia Qiu whenever we want them.
Favorite saying: “I have not failed, I’ve just found 10,000 ways
india in 2015 billions oF bits
rati thanawala emily nagle Green 27 unfortunately, “those of us” isn’t
that won’t work.” • thomas Alva edison

tHe world everyone.

is my smartpHone
14 Jeong Kim this widening digital divide poses human beings privileged enough people. Crowdsourcing, for exam-
wires? wHat wires? a global problem—one we need to to participate in them. In the com- ple, uses the web to bring togeth-
Wim Sweldens address in a holistic way over the ing years, we’ll use more video. er large communities to help with
16 next five years. We can already We’ll benefit from offerings that specific tasks. Is it less rich when
see that people living on the make our lives easier and more a significant segment of the pop-
time to smarten up
‘have-not’ side are being disad- pleasant by taking into account ulation is excluded by its inability
Basil Alwan
vantaged financially and intellec- where we are and what kinds of to access the Internet? likely so.
18 tually, health-wise and in terms things we prefer. We’re in the

the busINess book

the strAtegY book

europe: of overall quality of life. this
Falling beHind? while the digital ‘haves’ enjoy
Gabrielle Gauthey greater financial freedoms, better
education and health, and green-
20 er lives in increasingly paperless
tHis is not your societies.
FatHer’s network
Marcus Weldon the Internet has connected peo-
ple like never before. Social net-
download the speed thoughts at works are slowly reducing the
www.alcatel-lucent.com/speedthoughts degrees of separation between
midst of a transition to a digital
life in which we can rely on the
network for virtually every
aspect of our lives.
Connecting the unconnected
Yet a large segment of the globe
is not participating in this revolu-
tion. And that means we are all
missing the opportunity to col-
laborate intelligently with those
What if the next brave individu-
als who risk everything for what
they believe is right are not on
the Internet? the recent political
changes in a number of countries
were preceded by disruption of
social media sites, mobile net-
works and, in some cases, access
to the entire Internet. that is
proof positive that networks
•••

04 05
2010 AnnuAl report 2010 AnnuAl report

•••
today represent power. network
users are powerful based on
ideas, not on might.
It’s everybody’s business
We all must take a role in narrow-
ing the divide. Governments need
to make it a regulatory priority.
telcos have to make it a business
imperative. their partners in
designing and building networks
must innovate to enable network
accessibility for everyone. econo-
mies at large must transition to
the high-speed Internet to realize
productivity gains in small and
medium-sized enterprises, corpo-
rations, telecommunications com-
panies, network builders and
governments—even households.
Application and smartphone sup-
pliers will of course share in the
responsibility—and in a substan-
tial part of the benefits.
If we want to move from the dig-
ital divide to the digital economy,
we must not fall victim to a low-
est-common-denominator men-
tality when it comes to access,
speed, device availability and
cost. A major component of the
cost to users is of course the ser-
vice provider’s own operational
expenses. those expenses will be
partly addressed through modest
gains in revenues through a
growing subscriber base, but pro-
ductivity gains and rapid innova-
tion are also essential for the
vision of universal coverage to
become reality.
In recent months, natural disasters
such as the floods in Queensland,
Australia, the earthquake in
Christchurch, new Zealand and
the devastating tsunami in Japan
have provided examples of how
06
2010 AnnuAl report
the network by itself is
not enough; to actually
use it people need
the right devices and
applications, the right
ways and means.
that is the challenge to
the industry.
intricately woven our networks
are with the lives of people. Dur-
ing times of crisis our networks
have become the lifelines for res-
cue and recovery missions carried
out by first responders. these
events also create new opportuni-
ties once decisions are made to
rebuild the infrastructure and
restore the lives of local citizens.
making it happen
the work of the next years is to
replace existing copper-wire net-
works with fiber optics; to con-
tinue combining the capabilities
of wired and wireless networks;
to move data from our desktops
to the cloud. people shouldn’t
have to think about how they are
accessing the network—or the
cost of doing so—they should just
be able to do it, with the network
intelligently managing the details.
Greener networks may become
the norm, replacing cumbersome
towers and antennas with new
architectures based on miniatur-
ized equipment that is nearly
invisible to the community.
We won’t be able to dismantle the
paper economy until the digital
economy matures and is accessi-
ble to everyone who wants to
participate in it. I believe that if
we act today, by 2015 the tele-
communications sector will have
helped reduce the digital divide
by making network construction,
deployment and operation far
more affordable and available.
However, the network by itself is
not enough; to actually use it
people need the right devices and
applications, the right ways and
means. that is the challenge to
the industry—Alcatel-lucent
included—over the next few
years.
Jyoti mahurkar-thombre
social impact
LookINg bACkwArd:
InDIA In 2015
An imagined retrospective on
how India embraced technology and
transformed the lives of millions.
am writing to you from
i the year 2015. A lot has
happened since 2011.
Some of it may have been as you
imagined—and much as you did
not.
2011 brought the ipad 21 tablet,
with one million units sold in the
first weekend. Applications for
Apple 2 and Android™ 3 topped
600,000, and the first major 4G
mobile broadband networks were
introduced. the potential of inno-
vative technologies to improve
people’s lives was clear, primarily
those in the developed world.
the real surprise is how quickly
innovation transformed the lives
of those in emerging economies
such as india. In 2011, 50 percent
of Indians had no access to
mobile phones. today, in 2015,
farmers, students, housewives
and rural workers have smart-
phones, tablets and other mobile
connected devices—sometimes
sharing them among the mem-
bers of a family or village. these
devices are now viewed as essen-
tial to people’s livelihoods, edu-
cation and entertainment.
1
ipad 2 is a trademark of apple, inc., registered in the u.s. and other countries. 2 apple is a trademark of apple, inc.,
registered in the u.s. and other countries. 3 android is a trademark of google, inc.
rati tHanawala
stats: 30 years in the industry
position: vp, Bell labs network planning,
performance and economic analysis
Favorite saying: “Be the change you want to see in the world.”
Mahatma Gandhi
Devices come packaged with
voice- and touch-activated appli-
cations that allow the citizens of
this country with 23 languages to
seek work, access information and
find medical help. Students save
valuable time and money receiv-
ing interactive education at home
rather than spending hours travel-
ing to tutoring locations. In places
where good schools are scarce,
high-quality education modules
are just a click away. And it’s com-
mon to see families on trains and
buses crowded around small
screens watching Bollywood mov-
ies. (oh, and let’s not forget the
real-time sports: people are pay-
ing for the convenience of watch-
ing cricket games on their mobile
devices when they are stuck in
traffic and can’t be near a tV.)
SpeAKInG
FroM tHe
future
so how did this happen? In retro-
spect it seems to have been quite
simple: some breakthrough tech-
nologies were invented and two
types of Indian entrepreneurs
took them to the market.
the first entrepreneurs came
from india’s large and vibrant
software industry. Bored from
years of laboring to develop
the busINess book
the strAtegY book
applications for foreign markets,
they wanted to break out and
achieve something for them-
selves. they were the new gen-
eration: ambitious, knowledge-
able, globally connected, and in
touch with the needs of Indian
consumers. they used the best
practices available in 2011 to cre-
ate an environment for rapid
•••
07
2010 AnnuAl report

•••
today represent power. network
users are powerful based on
ideas, not on might.
It’s everybody’s business
We all must take a role in narrow-
ing the divide. Governments need
to make it a regulatory priority.
telcos have to make it a business
imperative. their partners in
designing and building networks
must innovate to enable network
accessibility for everyone. econo-
mies at large must transition to
the high-speed Internet to realize
productivity gains in small and
medium-sized enterprises, corpo-
rations, telecommunications com-
panies, network builders and
governments—even households.
Application and smartphone sup-
pliers will of course share in the
responsibility—and in a substan-
tial part of the benefits.
If we want to move from the dig-
ital divide to the digital economy,
we must not fall victim to a low-
est-common-denominator men-
tality when it comes to access,
speed, device availability and
cost. A major component of the
cost to users is of course the ser-
vice provider’s own operational
expenses. those expenses will be
partly addressed through modest
gains in revenues through a
growing subscriber base, but pro-
ductivity gains and rapid innova-
tion are also essential for the
vision of universal coverage to
become reality.
In recent months, natural disasters
such as the floods in Queensland,
Australia, the earthquake in
Christchurch, new Zealand and
the devastating tsunami in Japan
have provided examples of how
06
2010 AnnuAl report
the network by itself is
not enough; to actually
use it people need
the right devices and
applications, the right
ways and means.
that is the challenge to
the industry.
intricately woven our networks
are with the lives of people. Dur-
ing times of crisis our networks
have become the lifelines for res-
cue and recovery missions carried
out by first responders. these
events also create new opportuni-
ties once decisions are made to
rebuild the infrastructure and
restore the lives of local citizens.
making it happen
the work of the next years is to
replace existing copper-wire net-
works with fiber optics; to con-
tinue combining the capabilities
of wired and wireless networks;
to move data from our desktops
to the cloud. people shouldn’t
have to think about how they are
accessing the network—or the
cost of doing so—they should just
be able to do it, with the network
intelligently managing the details.
Greener networks may become
the norm, replacing cumbersome
towers and antennas with new
architectures based on miniatur-
ized equipment that is nearly
invisible to the community.
We won’t be able to dismantle the
paper economy until the digital
economy matures and is accessi-
ble to everyone who wants to
participate in it. I believe that if
we act today, by 2015 the tele-
communications sector will have
helped reduce the digital divide
by making network construction,
deployment and operation far
more affordable and available.
However, the network by itself is
not enough; to actually use it
people need the right devices and
applications, the right ways and
means. that is the challenge to
the industry—Alcatel-lucent
included—over the next few
years.
Jyoti mahurkar-thombre
social impact
LookINg bACkwArd:
InDIA In 2015
An imagined retrospective on
how India embraced technology and
transformed the lives of millions.
am writing to you from
i the year 2015. A lot has
happened since 2011.
Some of it may have been as you
imagined—and much as you did
not.
2011 brought the ipad 21 tablet,
with one million units sold in the
first weekend. Applications for
Apple 2 and Android™ 3 topped
600,000, and the first major 4G
mobile broadband networks were
introduced. the potential of inno-
vative technologies to improve
people’s lives was clear, primarily
those in the developed world.
the real surprise is how quickly
innovation transformed the lives
of those in emerging economies
such as india. In 2011, 50 percent
of Indians had no access to
mobile phones. today, in 2015,
farmers, students, housewives
and rural workers have smart-
phones, tablets and other mobile
connected devices—sometimes
sharing them among the mem-
bers of a family or village. these
devices are now viewed as essen-
tial to people’s livelihoods, edu-
cation and entertainment.
1
ipad 2 is a trademark of apple, inc., registered in the u.s. and other countries. 2 apple is a trademark of apple, inc.,
registered in the u.s. and other countries. 3 android is a trademark of google, inc.
rati tHanawala
stats: 30 years in the industry
position: vp, Bell labs network planning,
performance and economic analysis
Favorite saying: “Be the change you want to see in the world.”
Mahatma Gandhi
Devices come packaged with
voice- and touch-activated appli-
cations that allow the citizens of
this country with 23 languages to
seek work, access information and
find medical help. Students save
valuable time and money receiv-
ing interactive education at home
rather than spending hours travel-
ing to tutoring locations. In places
where good schools are scarce,
high-quality education modules
are just a click away. And it’s com-
mon to see families on trains and
buses crowded around small
screens watching Bollywood mov-
ies. (oh, and let’s not forget the
real-time sports: people are pay-
ing for the convenience of watch-
ing cricket games on their mobile
devices when they are stuck in
traffic and can’t be near a tV.)
SpeAKInG
FroM tHe
future
so how did this happen? In retro-
spect it seems to have been quite
simple: some breakthrough tech-
nologies were invented and two
types of Indian entrepreneurs
took them to the market.
the first entrepreneurs came
from india’s large and vibrant
software industry. Bored from
years of laboring to develop
the busINess book
the strAtegY book
applications for foreign markets,
they wanted to break out and
achieve something for them-
selves. they were the new gen-
eration: ambitious, knowledge-
able, globally connected, and in
touch with the needs of Indian
consumers. they used the best
practices available in 2011 to cre-
ate an environment for rapid
•••
07
2010 AnnuAl report
 SpeAKInG
FroM tHe
future
•••
development of new applications,
and made it accessible to talented
developers across India. their
efforts were championed both by
leaders in the It industry and by
scientists from top institutions,
such as the Indian Institutes of
technologies. Mobile operators
who had already deployed 3G
and 4G networks in 2011 and
2012 needed applications for
their customers and provided
important seed investments.
thousands of applications were
created for Indian consumers.
the next entrepreneurs were the
indian mobile phone companies
themselves. they created a mar-
ket for mobile data and video and
simultaneously delivered on their
social responsibility to serve
those who had previously been
without access. they were
unfazed by studies that claimed
mobile phone service would only
in 2011, 50 percent of
indians had no access to
mobile phones.
in 2015, farmers,
students and housewives
have smartphones,
tablets and other
connected devices.
08
2010 AnnuAl report
be widely adopted if it cost less
than five percent of household
expenses. Knowing that just three
percent of the Indian population
owned personal computers in
2011, and that just three percent
had wireline access, they saw
mobile technologies as the main
way for many people to access
video and other online content.
they convinced device manufac-
turers to create inexpensive mod-
els for this segment of consumers
on the basis of the business vol-
ume they would gain. these
mobile phone companies were
extremely demanding—driving
innovation from device and net-
work vendors anxious to serve
India’s large markets.
the new entrepreneurs also
drove down the prices of data
plans and services, leapfrogging
the West as they did so. they
were the first to introduce dis-
counted data offers during off-
peak hours. Consumers love this
new service, which starts with
the following message: “For the
next 30 minutes, you can make
calls or download videos at a dis-
counted rate of 80 percent, cour-
tesy of India Cola (or some other
sponsoring company).” the rev-
enue from this advertising gives
a boost to the mobile phone com-
panies’ bottom line and helps
subsidize end users. tens of mil-
lions of people who previously
could not afford to call now do so
during these times (which, amaz-
ingly, make up more than 50 per-
cent of the day), and all subscrib-
ers can affordably load video
content onto their devices. the
model is similar to what airlines
do: sell unfilled seats at a dis-
count. the innovative Indian
operators applied the same prin-
ciple to video and created lots of
happy customers.
Now, in 2015, india is an innova-
tion pacesetter. the country’s
software developers and mobile
companies are moving fast to
bring value to a population that
just a few short years ago was
underserved. their style is im-
provisational; their value propo-
sition is “fast, cheap, and just
good enough” to meet customers’
near-term needs—if not all their
lifestyle wants… yet. the Hindi
word for this is “ jugaad,” which
describes something that has
been in India’s DnA for millennia,
a spirit honed by years of surviv-
ing in an environment of scarce
resources. It is what brought the
world the $2,500 nano car by
tata Motors, a no-frills sub-com-
pact that addressed the essential
needs of a large segment of price-
sensitive consumers. now, for the as you read this in 2011, you when I write to you next from
first time, jugaad is being applied may ask if some issues we saw 2020, we will have solved this
by entrepreneurs in India to make back then remain unsolved. the challenge—and come very close
mobile communications afford- answer is, unfortunately, yes. I to the vision of global universal
able and relevant to the masses. believe that one area that service.
the result is rich innovations that remains challenging is the gov-
are now being transported to ernment’s role in fostering cre- rati thaNawala
other developing countries and ative and effective initiatives that
even to the developed world. We will have an impact on our collec-
have unleashed the tiger of inno- tive ability to share the advan-
vation, and everyone is reaping tages of connectivity with those
the benefits. who are underserved. I hope that
techNological chaNge
how fAst
Is Your future?
With coming advances in optical networking,
the answer is, “pretty fast.” And a good thing, too,
because the power users of tomorrow are
going to push to the limits networks exponentially
faster than the ones we have today.
i
n 2010, we pushed the
speed of optical net-
works to 100 Gigabits
per second on a single fiber.
James watt
stats: 25 years in the industry
that’s like sending an entire
library floor’s worth of informa-
position: president, alcatel-lucent optics
patent holder—in areas of traffic management and
internet protocol (ip)
the busINess book
the strAtegY book
tion through the Internet in a
single second.
You need fiber optics for those
Favorite saying: “…all progress depends on the unreasonable
man.” • George Bernard Shaw
kinds of speeds because they
work, literally, at the speed of
light—turning voice, data and
video signals into wavelengths
that was 2010. Within a couple of
years, we could hit 400 Gigabits
we will very likely need that kind
of speed to keep up with the
and firing them down fibers
between cities, across oceans, all
per second. It’s a pretty mind-
blowing increase, and what’s
amount of downloads, uploads
and content streaming that will
around the world. maybe more mind-blowing is that •••
09
2010 AnnuAl report
 SpeAKInG
FroM tHe
future
•••
development of new applications,
and made it accessible to talented
developers across India. their
efforts were championed both by
leaders in the It industry and by
scientists from top institutions,
such as the Indian Institutes of
technologies. Mobile operators
who had already deployed 3G
and 4G networks in 2011 and
2012 needed applications for
their customers and provided
important seed investments.
thousands of applications were
created for Indian consumers.
the next entrepreneurs were the
indian mobile phone companies
themselves. they created a mar-
ket for mobile data and video and
simultaneously delivered on their
social responsibility to serve
those who had previously been
without access. they were
unfazed by studies that claimed
mobile phone service would only
in 2011, 50 percent of
indians had no access to
mobile phones.
in 2015, farmers,
students and housewives
have smartphones,
tablets and other
connected devices.
08
2010 AnnuAl report
be widely adopted if it cost less
than five percent of household
expenses. Knowing that just three
percent of the Indian population
owned personal computers in
2011, and that just three percent
had wireline access, they saw
mobile technologies as the main
way for many people to access
video and other online content.
they convinced device manufac-
turers to create inexpensive mod-
els for this segment of consumers
on the basis of the business vol-
ume they would gain. these
mobile phone companies were
extremely demanding—driving
innovation from device and net-
work vendors anxious to serve
India’s large markets.
the new entrepreneurs also
drove down the prices of data
plans and services, leapfrogging
the West as they did so. they
were the first to introduce dis-
counted data offers during off-
peak hours. Consumers love this
new service, which starts with
the following message: “For the
next 30 minutes, you can make
calls or download videos at a dis-
counted rate of 80 percent, cour-
tesy of India Cola (or some other
sponsoring company).” the rev-
enue from this advertising gives
a boost to the mobile phone com-
panies’ bottom line and helps
subsidize end users. tens of mil-
lions of people who previously
could not afford to call now do so
during these times (which, amaz-
ingly, make up more than 50 per-
cent of the day), and all subscrib-
ers can affordably load video
content onto their devices. the
model is similar to what airlines
do: sell unfilled seats at a dis-
count. the innovative Indian
operators applied the same prin-
ciple to video and created lots of
happy customers.
Now, in 2015, india is an innova-
tion pacesetter. the country’s
software developers and mobile
companies are moving fast to
bring value to a population that
just a few short years ago was
underserved. their style is im-
provisational; their value propo-
sition is “fast, cheap, and just
good enough” to meet customers’
near-term needs—if not all their
lifestyle wants… yet. the Hindi
word for this is “ jugaad,” which
describes something that has
been in India’s DnA for millennia,
a spirit honed by years of surviv-
ing in an environment of scarce
resources. It is what brought the
world the $2,500 nano car by
tata Motors, a no-frills sub-com-
pact that addressed the essential
needs of a large segment of price-
sensitive consumers. now, for the as you read this in 2011, you when I write to you next from
first time, jugaad is being applied may ask if some issues we saw 2020, we will have solved this
by entrepreneurs in India to make back then remain unsolved. the challenge—and come very close
mobile communications afford- answer is, unfortunately, yes. I to the vision of global universal
able and relevant to the masses. believe that one area that service.
the result is rich innovations that remains challenging is the gov-
are now being transported to ernment’s role in fostering cre- rati thaNawala
other developing countries and ative and effective initiatives that
even to the developed world. We will have an impact on our collec-
have unleashed the tiger of inno- tive ability to share the advan-
vation, and everyone is reaping tages of connectivity with those
the benefits. who are underserved. I hope that
techNological chaNge
how fAst
Is Your future?
With coming advances in optical networking,
the answer is, “pretty fast.” And a good thing, too,
because the power users of tomorrow are
going to push to the limits networks exponentially
faster than the ones we have today.
i
n 2010, we pushed the
speed of optical net-
works to 100 Gigabits
per second on a single fiber.
James watt
stats: 25 years in the industry
that’s like sending an entire
library floor’s worth of informa-
position: president, alcatel-lucent optics
patent holder—in areas of traffic management and
internet protocol (ip)
the busINess book
the strAtegY book
tion through the Internet in a
single second.
You need fiber optics for those
Favorite saying: “…all progress depends on the unreasonable
man.” • George Bernard Shaw
kinds of speeds because they
work, literally, at the speed of
light—turning voice, data and
video signals into wavelengths
that was 2010. Within a couple of
years, we could hit 400 Gigabits
we will very likely need that kind
of speed to keep up with the
and firing them down fibers
between cities, across oceans, all
per second. It’s a pretty mind-
blowing increase, and what’s
amount of downloads, uploads
and content streaming that will
around the world. maybe more mind-blowing is that •••
09
2010 AnnuAl report
•••
be going on by then, as well as
with ‘cloud computing’ and other
business applications.
Having the capacity is one thing,
but the question on a lot of peo-
ple’s minds in the industry is,
“How will our networks be able to
manage all that traffic?” Fair
enough! If networks are going to
handle so much more informa-
tion, they’ll have to become a
whole lot simpler and more flex-
ible than they are today. this
streamlining and flexibility will
come from more automation and
less dependence on people to
fine-tune them when changes are
needed—because the changes will
come too fast and there will be
too many of them to keep up
with. So there will have to be
more blending of electronics with
optics: software and systems
capable of making split-second
(well, in fact, faster than that)
decisions about where to send
wavelengths, what information to
dump into them, what informa-
tion to pull out.
Automating the optical network is
going to be a big preoccupation
for the industry over the next
several years. Another one is
going to be extending the net-
work, getting it to reach more
people in more places.
Creating a truly connected world
is about building what some peo-
ple like to call a ‘universal com-
munications infrastructure’—one
that goes everywhere. to deliver
such higher speed connectivity
out to more places so that every-
one in the world has access to it,
we’ll have to solve some basic
challenges of geography and
10
2010 AnnuAl report
they’re going to
expect more from
their technology
than we would
have ever dreamed,
and do things with it,
solve problems that
we probably
always thought
were impossible.
physics. For example, more and
more information will have to be
pushed through the cables that
run under the ocean connecting
the continents. the distance
across the pacific is more than
10,000 kilometers: we’re dealing
with very long distances in those
cases, and the reality is that
transmission over 400 kilometers
is much easier than over thou-
sands. today we can send infor-
m a t i o n a c ro ss t h e o ce a n a t
40 Gigabits per second and by
2014 we should be at 100 Giga-
bits per second with technologi-
cal advances.
So distance is one challenge we’ll
have to solve to extend today’s
networks. Figuring out ways to
expand them in already crowded
cities is another. ripping up
streets to lay down new fiber is
highly unpopular. In some cities, ushahidi, the website that brings
network operators are using the people together to support natu-
sewer systems, in others, micro- ral disaster recovery efforts. Con-
wave transmitters. there are a lot necting people has a positive
of interesting technical problems impact.
to figure out: and not just how to
do it, but how to do it affordably. By using connectivity in new
ways, the generation of users we’ll
All of this is very exciting, but what see in 2015 is going to push soci-
does it actually mean ? Forget the ety to evolve. Government institu-
technology for a minute: what kind
of world is going to be using all of
tions, educational institutions,
even the ‘institution’ of the family
this capacity and connectivity? will change as a result. How will
young adults want to maintain
By 2015, we’ll have a generation
of young adults who have grown
their family ties now that they’ve
grown up being able to Skype 3
up with smartphones and laptops,
who can’t remember a time before
with their grandparents?
there was WiFi in coffee shops,
before Youtube™ 1 or Google™. 2
lots of speed, lots of connection,
lots of change. the future is going
they’re going to expect more from
their technology than we would
to come fast. But at the same
time, we are and will remain
have ever dreamed, and do things
with it, solve problems that we
human. Despite all the technol-
ogy at her disposal, my daughter
probably always thought were
impossible. they’ll find whole new
still wants to play with her
friends at recess and host
uses for being connected. sleepovers. the end of all this
connectivity may in fact be a
now, some people worry about
the bad that may come with the
greater sense of connection.
good—issues of privacy and mis- James watt
use. technology is a tool of soci-
ety, and society has its positive
and negative aspects. While tech-
nology can’t solve social prob-
lems, it can help. We need to
make sure networks and services
support society’s solutions for
the busINess book
the strAtegY book
handling known risks—for exam-
ple, by spreading information
quickly so people can keep safe
from identity theft and other
harm.
So, yes, there’s good and bad. But
the good is so powerful. these
expanded networks will connect
what otherwise would remain
isolated. look at examples like
1
youtube is a trademark of google, inc. 2 google is a trademark of google, inc.
3
skype is a trademark of skype limited and other related companies.
11
2010 AnnuAl report
•••
be going on by then, as well as
with ‘cloud computing’ and other
business applications.
Having the capacity is one thing,
but the question on a lot of peo-
ple’s minds in the industry is,
“How will our networks be able to
manage all that traffic?” Fair
enough! If networks are going to
handle so much more informa-
tion, they’ll have to become a
whole lot simpler and more flex-
ible than they are today. this
streamlining and flexibility will
come from more automation and
less dependence on people to
fine-tune them when changes are
needed—because the changes will
come too fast and there will be
too many of them to keep up
with. So there will have to be
more blending of electronics with
optics: software and systems
capable of making split-second
(well, in fact, faster than that)
decisions about where to send
wavelengths, what information to
dump into them, what informa-
tion to pull out.
Automating the optical network is
going to be a big preoccupation
for the industry over the next
several years. Another one is
going to be extending the net-
work, getting it to reach more
people in more places.
Creating a truly connected world
is about building what some peo-
ple like to call a ‘universal com-
munications infrastructure’—one
that goes everywhere. to deliver
such higher speed connectivity
out to more places so that every-
one in the world has access to it,
we’ll have to solve some basic
challenges of geography and
10
2010 AnnuAl report
they’re going to
expect more from
their technology
than we would
have ever dreamed,
and do things with it,
solve problems that
we probably
always thought
were impossible.
physics. For example, more and
more information will have to be
pushed through the cables that
run under the ocean connecting
the continents. the distance
across the pacific is more than
10,000 kilometers: we’re dealing
with very long distances in those
cases, and the reality is that
transmission over 400 kilometers
is much easier than over thou-
sands. today we can send infor-
m a t i o n a c ro ss t h e o ce a n a t
40 Gigabits per second and by
2014 we should be at 100 Giga-
bits per second with technologi-
cal advances.
So distance is one challenge we’ll
have to solve to extend today’s
networks. Figuring out ways to
expand them in already crowded
cities is another. ripping up
streets to lay down new fiber is
highly unpopular. In some cities, ushahidi, the website that brings
network operators are using the people together to support natu-
sewer systems, in others, micro- ral disaster recovery efforts. Con-
wave transmitters. there are a lot necting people has a positive
of interesting technical problems impact.
to figure out: and not just how to
do it, but how to do it affordably. By using connectivity in new
ways, the generation of users we’ll
All of this is very exciting, but what see in 2015 is going to push soci-
does it actually mean ? Forget the ety to evolve. Government institu-
technology for a minute: what kind
of world is going to be using all of
tions, educational institutions,
even the ‘institution’ of the family
this capacity and connectivity? will change as a result. How will
young adults want to maintain
By 2015, we’ll have a generation
of young adults who have grown
their family ties now that they’ve
grown up being able to Skype 3
up with smartphones and laptops,
who can’t remember a time before
with their grandparents?
there was WiFi in coffee shops,
before Youtube™ 1 or Google™. 2
lots of speed, lots of connection,
lots of change. the future is going
they’re going to expect more from
their technology than we would
to come fast. But at the same
time, we are and will remain
have ever dreamed, and do things
with it, solve problems that we
human. Despite all the technol-
ogy at her disposal, my daughter
probably always thought were
impossible. they’ll find whole new
still wants to play with her
friends at recess and host
uses for being connected. sleepovers. the end of all this
connectivity may in fact be a
now, some people worry about
the bad that may come with the
greater sense of connection.
good—issues of privacy and mis- James watt
use. technology is a tool of soci-
ety, and society has its positive
and negative aspects. While tech-
nology can’t solve social prob-
lems, it can help. We need to
make sure networks and services
support society’s solutions for
the busINess book
the strAtegY book
handling known risks—for exam-
ple, by spreading information
quickly so people can keep safe
from identity theft and other
harm.
So, yes, there’s good and bad. But
the good is so powerful. these
expanded networks will connect
what otherwise would remain
isolated. look at examples like
1
youtube is a trademark of google, inc. 2 google is a trademark of google, inc.
3
skype is a trademark of skype limited and other related companies.
11
2010 AnnuAl report
 guest
speed
tHouGHt
techNological chaNge
bILLIoNs ANd
bILLIoNs of bIts
tomorrow’s high-tech leaders will be companies
that understand the business of connecting
huge numbers of people and things.
In a world where information is everything
—and everything is information—global
networks are going to have to support
a whole new mode of connected living.
hat will the ICt indus-
w try—that’s Information
and Communications
technology—look like in 2015?
Before I get out my crystal ball,
let’s look backward first. think
for a moment about time-telling
itself. Mechanical clock technol-
ogy first emerged in the form of
clock towers. the lovely village of
Brantôme in France’s périgord
has one of the oldest in europe,
built in romanesque style. Why a
bell tower? Because the technol-
ogy was scarce, so locating the
mechanism in an accessible cen-
tral place and triggering bells to
ring at regular intervals allowed
it to be used by many. Since then,
as time-telling technology has
gotten smaller and cheaper,
clocks moved into our homes,
then to our pockets and wrists,
and now to virtually any device
that can benefit: radios, micro-
waves, coffee pots, and much
more. time-telling has diffused.
And in so doing, the number of
time-telling things has grown
exponentially—from a few dozen
12
2010 AnnuAl report
emily nagle green
stats: 30 years in the industry
position: chairman, yankee group research, inc.
Favorite saying: “the truth does not change according to
our ability to stomach it.” • Flannery o’Connor
clock towers in the 13th century
to a quantity today that would be
difficult to know precisely but is
surely in the hundreds of billions.
that’s good context for my pre-
dictions for the information and
communications technology sec-
tor by 2015: exponential diffu-
sion. not a new trend, but rather
something that has characterized
the progress of technology since
the introduction of the clock...
and more recently, the introduc-
tion of electronic computing in
the middle of the last century.
When exponential trends com-
bine, the pace of technological
change accelerates. Computing,
storage, networks, each continue
to become more efficient, cheap-
er and smaller. no longer does
technology require centuries to
diffuse, as the clock did, but
decades or less. As a result, by
2015 we can expect pronounced
expansion in at least four areas.
Cloud computing
Yankee Group research suggests
that the revenues recognized by
the global provision of enterprise
computing services in the net-
work will surpass $22B by 2014—
at a compound annual growth
rate of more than 30 percent.
Why? Just as factories in the
early 20th century were able to
stop generating their own power
as the global electrical grid
matured, businesses will move
By 2015, we expect more than
50 billion things worldwide to be
connected—10 times the number of
people the network will connect.
away from centralized, on-site
computing centers and instead
locate their computing and data
storage elsewhere.
Connected devices
the expansion of an affordable,
high-capacity, intelligent global
network is also spawning the
emergence of more networked
things in our lives. this trend
includes new classes of consumer
products, such as the tablet
(which Yankee Group expects to
represent an annual global mar-
ket of $45B by 2015), and surely
new devices our imaginations
have yet to create. In commercial
enterprises, we expect to see the
long-heralded addition of net-
work connectivity to the compa-
ny’s ‘assets’—equipment, compo-
nents, infrastructure—so that
they, too, can use the network to
send and receive information and
instructions, saving time, labor,
and other costs in the process. By
2015, we expect more than
50 billion things worldwide to be
connected—10 times the number
of people the network will con-
nect. the exponential growth will
come from a combination of
machine-to-machine applications
that have been around for the
better part of the last decade,
such as fleet management, and
new uses for connected things,
such as digital signage. All due to
the ability of computing and con-
nectivity to further diffuse into
1
Google is a trademark of Google, Inc.
the world thanks to the continu-
ing fall in costs and size of the
core technology.
small-scale computing
A major change in how software is
created and used is underway, a
second-order effect of the expo-
nential growth in smartphones,
tablets, and other connected
devices. It’s atomized software—
small applications that, given the
reduced computing and display
capabilities of those devices, focus
on just a few key functions. From
the days of complex, monolithic
software systems built to run from
massive central computing facili-
ties, we’re moving toward a frag-
mented, simplified software space
from which there is no return.
Mobile apps will reach $26M in
global sales by 2015. Will we con-
tinue to choose them from online
‘app stores’? Doubtful. no one
cares to search for needles in hay-
stacks. During the next few years,
open networks and open operat-
ing systems will support a more
hybridized, integrative approach
to emerge. users may assemble
higher-order functions from mul-
tiple apps, jigsaw-puzzle style.
‘exa-scale’ data
lastly, the unstoppable and rap-
idly accelerating pace of intercon-
necting people and things around
the world is unleashing orders of
magnitude increases in the vol-
ume of digital data in our lives.
there are at least three factors:
speed, thanks to the network’s
ability to tell us about events in
re a l t i m e ; scale , d u e to t h e
increased numbers of people,
things and activities engaged in
the networked world; and sen-
sors that gather new dimensions
of information from us and our
things. people today are just get-
t i n g u s e d to t h e d i ffe re n ce
between the prefixes ‘mega-’
(millions) and ‘giga-’ (billions), and
now we’re into ‘exa-’ territory, the
prefix that means billions of bil-
lions. Internet traffic today is
being measured in exabytes per
month. new insights will emerge
from new types of data: already,
Google1 has shown that the loca-
tion of people searching for infor-
mation on flu symptoms is a reli-
able predictor of the location of
the next flu outbreak.
Given the rapid expansions
ahead, by 2015 our 20th century
computing history may not look
as charming as the stone campa-
nile in Brantôme, but it will be
the busINess book
the strAtegY book
just as outdated.
emily Nagle greeN
13
2010 AnnuAl report
 guest
speed
tHouGHt
techNological chaNge
bILLIoNs ANd
bILLIoNs of bIts
tomorrow’s high-tech leaders will be companies
that understand the business of connecting
huge numbers of people and things.
In a world where information is everything
—and everything is information—global
networks are going to have to support
a whole new mode of connected living.
hat will the ICt indus-
w try—that’s Information
and Communications
technology—look like in 2015?
Before I get out my crystal ball,
let’s look backward first. think
for a moment about time-telling
itself. Mechanical clock technol-
ogy first emerged in the form of
clock towers. the lovely village of
Brantôme in France’s périgord
has one of the oldest in europe,
built in romanesque style. Why a
bell tower? Because the technol-
ogy was scarce, so locating the
mechanism in an accessible cen-
tral place and triggering bells to
ring at regular intervals allowed
it to be used by many. Since then,
as time-telling technology has
gotten smaller and cheaper,
clocks moved into our homes,
then to our pockets and wrists,
and now to virtually any device
that can benefit: radios, micro-
waves, coffee pots, and much
more. time-telling has diffused.
And in so doing, the number of
time-telling things has grown
exponentially—from a few dozen
12
2010 AnnuAl report
emily nagle green
stats: 30 years in the industry
position: chairman, yankee group research, inc.
Favorite saying: “the truth does not change according to
our ability to stomach it.” • Flannery o’Connor
clock towers in the 13th century
to a quantity today that would be
difficult to know precisely but is
surely in the hundreds of billions.
that’s good context for my pre-
dictions for the information and
communications technology sec-
tor by 2015: exponential diffu-
sion. not a new trend, but rather
something that has characterized
the progress of technology since
the introduction of the clock...
and more recently, the introduc-
tion of electronic computing in
the middle of the last century.
When exponential trends com-
bine, the pace of technological
change accelerates. Computing,
storage, networks, each continue
to become more efficient, cheap-
er and smaller. no longer does
technology require centuries to
diffuse, as the clock did, but
decades or less. As a result, by
2015 we can expect pronounced
expansion in at least four areas.
Cloud computing
Yankee Group research suggests
that the revenues recognized by
the global provision of enterprise
computing services in the net-
work will surpass $22B by 2014—
at a compound annual growth
rate of more than 30 percent.
Why? Just as factories in the
early 20th century were able to
stop generating their own power
as the global electrical grid
matured, businesses will move
By 2015, we expect more than
50 billion things worldwide to be
connected—10 times the number of
people the network will connect.
away from centralized, on-site
computing centers and instead
locate their computing and data
storage elsewhere.
Connected devices
the expansion of an affordable,
high-capacity, intelligent global
network is also spawning the
emergence of more networked
things in our lives. this trend
includes new classes of consumer
products, such as the tablet
(which Yankee Group expects to
represent an annual global mar-
ket of $45B by 2015), and surely
new devices our imaginations
have yet to create. In commercial
enterprises, we expect to see the
long-heralded addition of net-
work connectivity to the compa-
ny’s ‘assets’—equipment, compo-
nents, infrastructure—so that
they, too, can use the network to
send and receive information and
instructions, saving time, labor,
and other costs in the process. By
2015, we expect more than
50 billion things worldwide to be
connected—10 times the number
of people the network will con-
nect. the exponential growth will
come from a combination of
machine-to-machine applications
that have been around for the
better part of the last decade,
such as fleet management, and
new uses for connected things,
such as digital signage. All due to
the ability of computing and con-
nectivity to further diffuse into
1
Google is a trademark of Google, Inc.
the world thanks to the continu-
ing fall in costs and size of the
core technology.
small-scale computing
A major change in how software is
created and used is underway, a
second-order effect of the expo-
nential growth in smartphones,
tablets, and other connected
devices. It’s atomized software—
small applications that, given the
reduced computing and display
capabilities of those devices, focus
on just a few key functions. From
the days of complex, monolithic
software systems built to run from
massive central computing facili-
ties, we’re moving toward a frag-
mented, simplified software space
from which there is no return.
Mobile apps will reach $26M in
global sales by 2015. Will we con-
tinue to choose them from online
‘app stores’? Doubtful. no one
cares to search for needles in hay-
stacks. During the next few years,
open networks and open operat-
ing systems will support a more
hybridized, integrative approach
to emerge. users may assemble
higher-order functions from mul-
tiple apps, jigsaw-puzzle style.
‘exa-scale’ data
lastly, the unstoppable and rap-
idly accelerating pace of intercon-
necting people and things around
the world is unleashing orders of
magnitude increases in the vol-
ume of digital data in our lives.
there are at least three factors:
speed, thanks to the network’s
ability to tell us about events in
re a l t i m e ; scale , d u e to t h e
increased numbers of people,
things and activities engaged in
the networked world; and sen-
sors that gather new dimensions
of information from us and our
things. people today are just get-
t i n g u s e d to t h e d i ffe re n ce
between the prefixes ‘mega-’
(millions) and ‘giga-’ (billions), and
now we’re into ‘exa-’ territory, the
prefix that means billions of bil-
lions. Internet traffic today is
being measured in exabytes per
month. new insights will emerge
from new types of data: already,
Google1 has shown that the loca-
tion of people searching for infor-
mation on flu symptoms is a reli-
able predictor of the location of
the next flu outbreak.
Given the rapid expansions
ahead, by 2015 our 20th century
computing history may not look
as charming as the stone campa-
nile in Brantôme, but it will be
the busINess book
the strAtegY book
just as outdated.
emily Nagle greeN
13
2010 AnnuAl report
 techNological chaNge
wIres? whAt wIres?
one generation’s transformation is
the next’s status quo. With the push toward
all-mobile connectivity, people may soon
think it strange that devices ever had to be
‘plugged in’. But before we reach that point,
some things will have to change.
or a lot of people, mobile
F co m m u n i c a t i o n st i l l
seems like a new thing.
With millions around the world
just getting their first cellphones,
it’s easy to forget that mobile net-
works have been around for 30
years. While their capabilities
have evolved, their basic design
has stayed the same, which is a
problem now that they’re increas-
ingly having to handle all kinds of
multimedia content—video, gam-
ing, presentations and more—and
not just the voice communication
for which they were built. If all
mobile calls today were to switch
to high-definition video, existing
networks would need 500 times
more capacity to manage the
load. As built, they’re not ready
for that kind of growth.
rethinking
the mobile network
Current mobile networks are
made up of large cell sites cover-
ing wide areas. this makes sense
14
2010 AnnuAl report
wim sweldens
stats: 15 years in the industry
position: president, alcatel-lucent wireless division
ieee fellow (2003)
Favorite saying: “Be bold.”
for voice communication but isn’t
ideal for high-speed data, video
and other applications because it
creates bottlenecks when many
people try to use the same set of
network resources at once.
What’s the solution? Mobile com-
panies are exploring the use of
additional, smaller cell sites to
serve clusters of subscribers in
usage hot spots—typically dense
urban areas, buildings, shopping
malls, sports arenas and other
gathering places. this not only
provides a way of handling spikes
in volume but also makes the net-
works themselves less power-
hungry, easier to install and—
because it requires fewer large
transmission towers—less intru-
sive as well.
these kinds of solutions are
called ‘active, intelligent, distrib-
uted radio’. Alcatel-lucent’s ver-
sion of this is lightradio™, which
takes the components of a tradi-
tional mobile transmission sta-
tion and scatters them through-
out a service area. even though
they’re distributed, the pieces all
work together. It’s a model that
makes it very easy for networks
to g row b e ca u s e ex p a n s i o n
doesn’t require any heavy-duty
construction—or take up a lot of
space, given that equipment tra-
ditionally a cubic meter in size is
shrunk down to a device the size
of a rubik’s Cube.
boosting capacity:
Ip to the rescue
If the above approaches solve the
challenge of how to grow the net-
work, there’s still the question of
how to boost its capacity. In the
wired world, high-speed, high-
capacity services take advantage
of a single, uniform technology
based on Ip (Internet protocol).
this same change is now well
underway on the mobile side of
if all mobile calls today
were to switch to
high-definition video,
existing networks
would need 500 times
more capacity to
manage the load.
as built, they’re not
ready for that kind of
growth.
things: older technologies are
being transitioned to Ip to deliver
the next generation of services.
the beauty of all-Ip is that it com-
bines mobile and fixed technology
in the same network to handle
voice, email, video communica-
tions and messaging—making it
hugely economical and efficient,
especially for companies that
deliver both types of services.
get your head in the cloud
those efficiencies are going to
multiply with the arrival of ‘cloud
computing.’ In the cloud world,
computer processing is central-
ized in the network instead of on
each user’s device. It becomes a
commodity that is shared dynam-
ically among applications, direct-
ed where it’s needed when it’s
needed. Consumers’ devices—
their smartphones, laptops and
whatnot—end up requiring less
computer power, making them
lighter, thinner and more porta-
ble: they get their functionality
through network connectivity.
the notion of the cloud can be
also applied to the design of
mobile networks themselves.
today as people travel around
using their devices, they create
peaks and valleys of information
in the network. Active, distribut-
ed radio resolves this fundamen-
tal problem of ‘traffic flow’ by
combining the processing for
many cell sites in a cloud-like
way, handling unpredictable
shifts smartly and dynamically as
they occur. this creates massive
capacity by using the collective
resources of the network instead
of relying on solitary sites and
equipment.
mobility unbound
With the transition to high-speed,
high-capacity services, mobile
networks are becoming integrat-
ed with Ip wireline networks. A
new era in communications tech-
the busINess book
the strAtegY book
nology is emerging. What that
really means is that people will
soon be able to do what they
already wish for today: to stay
effortlessly connected no matter
where they go and use whatever
device they please—wire-free.
wim sweldeNs
15
2010 AnnuAl report
 techNological chaNge
wIres? whAt wIres?
one generation’s transformation is
the next’s status quo. With the push toward
all-mobile connectivity, people may soon
think it strange that devices ever had to be
‘plugged in’. But before we reach that point,
some things will have to change.
or a lot of people, mobile
F co m m u n i c a t i o n st i l l
seems like a new thing.
With millions around the world
just getting their first cellphones,
it’s easy to forget that mobile net-
works have been around for 30
years. While their capabilities
have evolved, their basic design
has stayed the same, which is a
problem now that they’re increas-
ingly having to handle all kinds of
multimedia content—video, gam-
ing, presentations and more—and
not just the voice communication
for which they were built. If all
mobile calls today were to switch
to high-definition video, existing
networks would need 500 times
more capacity to manage the
load. As built, they’re not ready
for that kind of growth.
rethinking
the mobile network
Current mobile networks are
made up of large cell sites cover-
ing wide areas. this makes sense
14
2010 AnnuAl report
wim sweldens
stats: 15 years in the industry
position: president, alcatel-lucent wireless division
ieee fellow (2003)
Favorite saying: “Be bold.”
for voice communication but isn’t
ideal for high-speed data, video
and other applications because it
creates bottlenecks when many
people try to use the same set of
network resources at once.
What’s the solution? Mobile com-
panies are exploring the use of
additional, smaller cell sites to
serve clusters of subscribers in
usage hot spots—typically dense
urban areas, buildings, shopping
malls, sports arenas and other
gathering places. this not only
provides a way of handling spikes
in volume but also makes the net-
works themselves less power-
hungry, easier to install and—
because it requires fewer large
transmission towers—less intru-
sive as well.
these kinds of solutions are
called ‘active, intelligent, distrib-
uted radio’. Alcatel-lucent’s ver-
sion of this is lightradio™, which
takes the components of a tradi-
tional mobile transmission sta-
tion and scatters them through-
out a service area. even though
they’re distributed, the pieces all
work together. It’s a model that
makes it very easy for networks
to g row b e ca u s e ex p a n s i o n
doesn’t require any heavy-duty
construction—or take up a lot of
space, given that equipment tra-
ditionally a cubic meter in size is
shrunk down to a device the size
of a rubik’s Cube.
boosting capacity:
Ip to the rescue
If the above approaches solve the
challenge of how to grow the net-
work, there’s still the question of
how to boost its capacity. In the
wired world, high-speed, high-
capacity services take advantage
of a single, uniform technology
based on Ip (Internet protocol).
this same change is now well
underway on the mobile side of
if all mobile calls today
were to switch to
high-definition video,
existing networks
would need 500 times
more capacity to
manage the load.
as built, they’re not
ready for that kind of
growth.
things: older technologies are
being transitioned to Ip to deliver
the next generation of services.
the beauty of all-Ip is that it com-
bines mobile and fixed technology
in the same network to handle
voice, email, video communica-
tions and messaging—making it
hugely economical and efficient,
especially for companies that
deliver both types of services.
get your head in the cloud
those efficiencies are going to
multiply with the arrival of ‘cloud
computing.’ In the cloud world,
computer processing is central-
ized in the network instead of on
each user’s device. It becomes a
commodity that is shared dynam-
ically among applications, direct-
ed where it’s needed when it’s
needed. Consumers’ devices—
their smartphones, laptops and
whatnot—end up requiring less
computer power, making them
lighter, thinner and more porta-
ble: they get their functionality
through network connectivity.
the notion of the cloud can be
also applied to the design of
mobile networks themselves.
today as people travel around
using their devices, they create
peaks and valleys of information
in the network. Active, distribut-
ed radio resolves this fundamen-
tal problem of ‘traffic flow’ by
combining the processing for
many cell sites in a cloud-like
way, handling unpredictable
shifts smartly and dynamically as
they occur. this creates massive
capacity by using the collective
resources of the network instead
of relying on solitary sites and
equipment.
mobility unbound
With the transition to high-speed,
high-capacity services, mobile
networks are becoming integrat-
ed with Ip wireline networks. A
new era in communications tech-
the busINess book
the strAtegY book
nology is emerging. What that
really means is that people will
soon be able to do what they
already wish for today: to stay
effortlessly connected no matter
where they go and use whatever
device they please—wire-free.
wim sweldeNs
15
2010 AnnuAl report
 techNological chaNge At Alcatel-lucent we talk about that can recognize subscribers,
building High leverage know what plan they’re on, and
n e t w o r k s ™—‘ h i g h l e v e ra g e ’ set the network to deliver the

tIme to smArteN up
because they must not only carry level of service they’re paying
all the voice, data and video they for. Some people might be open
can, at the lowest possible cost, to allowing their preferences or
It used to be that if you had more calls or data flowing but they also have to contain the usage to be analyzed in order to
through your network the solution was to add necessary intelligence to use receive more effective and less
more capacity. But with an ever-greater variety of every single network asset to its obtrusive advertising. this again
media (HD video, anyone?) pouring through today’s fullest capability. to accomplish requires systems that can analyze
networks at faster and faster speeds, capacity alone this, network operators will and understand information
isn’t enough. We have to make the networks require a toolset of new technolo- flows much more deeply than
we use more economical, energy efficient and, gies, which has created whole new today’s networks do.
in a word, smarter. areas of development in our
industry. So the network of tomorrow
won’t just be high-speed; it will
Intelligence + control = also be intelligent. this will
opportunity ensure companies building the
t seems that every time A good example is on-demand HD public networks of tomorrow
i the communications
industry announces a basil alwan
video. to support it, content
delivery network (CDn) technol-
deliver the best performance to
their subscribers while benefiting
new capability it is rapidly con- stats: 25 years in the industry ogy must be deployed deep in the from the economics required to
sumed: new applications emerge position: president, alcatel-lucent ip division operator network. CDn creates support ongoing growth. this is
that push the limits and suddenly founder ceo, timetra pockets throughout the network indeed the only way forward. We
the network’s playing catch-up where copies of popular sites, all have a vested interest in see-
Favorite saying: “What you can do, or dream you can do, begin it.
again. Most recently, social and downloads and streams can be ing the continuation of this
Boldness has genius, power and magic in it.” • Goethe
entertainment applications have stored close to the people who renaissance in communications.
taken off, with high-definition wa n t t h e m . I f t h o u s a n d s of no matter who you are—subscrib-
(HD) video the main consumer of households are watching a single er, application developer or
network capacity (bandwidth). homes and devices access net- sive proposition. telcos need to program, it is economically telco—making sure this burgeon-
We’re also seeing applications work resources; and reshaping generate enough revenues from imperative that each individual ing, boundary-less, digital net-
leave the desktop and make their the capabilities of the large core their networks to shoulder the video stream not have to travel worked world comes to be is
home in the network—what’s networks that move massive cost of change. Fortunately for across the entire Internet every essential.
called cloud computing. All of flows of information around the these companies, their ‘product’— time it’s viewed. rather, the video
these demand always-on, reli- Internet. this progress can’t hap- the network—is becoming more s h o u l d b e sto re d l o ca l l y to basil alwaN
able, high-performance networks. pen in isolation. It’s not particu- essential and valuable with every improve the quality and speed of
larly useful to have very high- passing day. What started as prin- the subscriber experience.
redefining ‘possible’ speed access if there aren’t the cipally a way for businesses to

the busINess book

the strAtegY book

As in pCs, tablets and phones, the
engine of network bandwidth
growth is silicon technology. In
some ways silicon is like a blank
sheet of paper; every generation
resources in the rest of the net-
work to connect to other users or
applications. It’s like an orchestra:
to produce good results, all parts
must be on time and in tune.
communicate has become the
fabric of our social lives, work
lives and economies. It’s truly
remarkable.
to ensure subscribers get their
fair share of high-speed connec-
tivity, network companies also
need to be able to impose usage
caps and controls. this requires

the network of tomorrow

writes something new on it, to harness the value in the net- that a new set of technologies be
drawing more complex, more getting the most value work, we have to do things differ- built into equipment so compa-

won’t just be high-speed;

powerful designs and reweaving out of the network ently than we have up to now. nies can see and understand the
the fabric of the Internet. this is A ss e m b l i n g a te c h n o l o g i ca l network companies’ business wa y i n fo r m a t i o n i s f l ow i n g

it will also be intelligent.

the lifeblood of our business: ensemble like the one we’re talk- models need to change. Building a through their networks. It also
advancing the ways companies, ing about is, of course, an expen- faster network alone won’t suffice. requires policies and systems

16 17
2010 AnnuAl report 2010 AnnuAl report
 techNological chaNge At Alcatel-lucent we talk about that can recognize subscribers,
building High leverage know what plan they’re on, and
n e t w o r k s ™—‘ h i g h l e v e ra g e ’ set the network to deliver the

tIme to smArteN up
because they must not only carry level of service they’re paying
all the voice, data and video they for. Some people might be open
can, at the lowest possible cost, to allowing their preferences or
It used to be that if you had more calls or data flowing but they also have to contain the usage to be analyzed in order to
through your network the solution was to add necessary intelligence to use receive more effective and less
more capacity. But with an ever-greater variety of every single network asset to its obtrusive advertising. this again
media (HD video, anyone?) pouring through today’s fullest capability. to accomplish requires systems that can analyze
networks at faster and faster speeds, capacity alone this, network operators will and understand information
isn’t enough. We have to make the networks require a toolset of new technolo- flows much more deeply than
we use more economical, energy efficient and, gies, which has created whole new today’s networks do.
in a word, smarter. areas of development in our
industry. So the network of tomorrow
won’t just be high-speed; it will
Intelligence + control = also be intelligent. this will
opportunity ensure companies building the
t seems that every time A good example is on-demand HD public networks of tomorrow
i the communications
industry announces a basil alwan
video. to support it, content
delivery network (CDn) technol-
deliver the best performance to
their subscribers while benefiting
new capability it is rapidly con- stats: 25 years in the industry ogy must be deployed deep in the from the economics required to
sumed: new applications emerge position: president, alcatel-lucent ip division operator network. CDn creates support ongoing growth. this is
that push the limits and suddenly founder ceo, timetra pockets throughout the network indeed the only way forward. We
the network’s playing catch-up where copies of popular sites, all have a vested interest in see-
Favorite saying: “What you can do, or dream you can do, begin it.
again. Most recently, social and downloads and streams can be ing the continuation of this
Boldness has genius, power and magic in it.” • Goethe
entertainment applications have stored close to the people who renaissance in communications.
taken off, with high-definition wa n t t h e m . I f t h o u s a n d s of no matter who you are—subscrib-
(HD) video the main consumer of households are watching a single er, application developer or
network capacity (bandwidth). homes and devices access net- sive proposition. telcos need to program, it is economically telco—making sure this burgeon-
We’re also seeing applications work resources; and reshaping generate enough revenues from imperative that each individual ing, boundary-less, digital net-
leave the desktop and make their the capabilities of the large core their networks to shoulder the video stream not have to travel worked world comes to be is
home in the network—what’s networks that move massive cost of change. Fortunately for across the entire Internet every essential.
called cloud computing. All of flows of information around the these companies, their ‘product’— time it’s viewed. rather, the video
these demand always-on, reli- Internet. this progress can’t hap- the network—is becoming more s h o u l d b e sto re d l o ca l l y to basil alwaN
able, high-performance networks. pen in isolation. It’s not particu- essential and valuable with every improve the quality and speed of
larly useful to have very high- passing day. What started as prin- the subscriber experience.
redefining ‘possible’ speed access if there aren’t the cipally a way for businesses to

the busINess book

the strAtegY book

As in pCs, tablets and phones, the
engine of network bandwidth
growth is silicon technology. In
some ways silicon is like a blank
sheet of paper; every generation
resources in the rest of the net-
work to connect to other users or
applications. It’s like an orchestra:
to produce good results, all parts
must be on time and in tune.
communicate has become the
fabric of our social lives, work
lives and economies. It’s truly
remarkable.
to ensure subscribers get their
fair share of high-speed connec-
tivity, network companies also
need to be able to impose usage
caps and controls. this requires

the network of tomorrow

writes something new on it, to harness the value in the net- that a new set of technologies be
drawing more complex, more getting the most value work, we have to do things differ- built into equipment so compa-

won’t just be high-speed;

powerful designs and reweaving out of the network ently than we have up to now. nies can see and understand the
the fabric of the Internet. this is A ss e m b l i n g a te c h n o l o g i ca l network companies’ business wa y i n fo r m a t i o n i s f l ow i n g

it will also be intelligent.

the lifeblood of our business: ensemble like the one we’re talk- models need to change. Building a through their networks. It also
advancing the ways companies, ing about is, of course, an expen- faster network alone won’t suffice. requires policies and systems

16 17
2010 AnnuAl report 2010 AnnuAl report
 techNological chaNge
europe: fALLINg behINd?
It’s been a marathon of change for
european telcos over the past five
years—and the biggest disruptions are
still to come. they have to overhaul
their business models, and fast.
What will it take? A change-ready
environment, starting with a common
european vision for the industry.
aution: disruptive
c change ahead
Industry observers have
called the recent rapid increase in
mobile data an ‘explosion’ with
good reason. the magnitude and
speed of change we’ve seen with
the rise of smartphone use has
never been experienced with any
innovation before—and we are
still just on the eve of the mobile
Internet.
How did it come about? the first
contributor was extremely fast
adoption of new technology. In
1999, one human being out of six
had a mobile phone. By 2010, it
was seven out of 10. the second
is the enhanced capability of the
devices themselves: roughly 10
percent of all mobile phones
today can connect to the Internet,
and 70 percent will be able to do
so by 2015. the 400 biggest cit-
ies in the world will be home to
13,000 smartphones for every
square kilometer in 2015, com-
pared to 400 today.
18
2010 AnnuAl report
gabrielle gautHey
stats: 19 years in the industry
position: executive vp, global government and
public affairs, alcatel-lucent
Favorite saying:
“turbulence ahead: disruptive thinking urgently needed.”
last but not least, some 90 per-
cent of mobile usage by 2015 will
be able to send and receive video.
If just one of every five smart-
phones were to simultaneously
connect to the network in such a
scenario, demand would soar by
a factor of 30. this means signifi-
cant investments are needed in
every area of the network to
increase capacity. estimates for
europe alone put that investment
at around 380 billion euros over
the coming decade, 100 billion of
which will be for wireless access.
And in fact most regions of the
world are seeing this spending
happen: in Asia, the u.S., russia
and eastern europe. It seems that
Central and Western europe are
lagging behind.
this is not Alexander graham
bell’s business model
the traditional business model
for telecommunications, which
goes back all the way to the tele-
phone’s inventor, Alexander
Graham Bell, is coming to an end.
network companies today can no
longer make enough money sell-
ing voice minutes that are priced
based on the distance a call trav-
els, and can’t turn the data cours-
ing through their systems into
revenue even though the volume
of voice, data and video is grow-
ing. As a result, telecommunica-
tions companies are reluctant and
even unable to finance the net-
work upgrades they need to make
to keep up with user demand.
outdated interconnection agree-
ments—which govern how they
allow others to use their net-
works—and services piggyback-
ing on their networks from so-
called ‘over-the-top’ providers
who deliver applications like
Youtube,1 Facebook2 and Google3
to telco customers without any
fees for network use, are com-
pounding the problem. Most
the magnitude and speed of
change we’ve seen with
the rise of smartphone use
has never been experienced
with any innovation before.
painful is the fact that these
over-the-toppers are enjoying
fast revenue growth, a stunning
increase in market capitalization,
and a very different price-to-
earnings ratio than the network
operators. they have very dif-
ferent business models and are
often global players, while telcos
remain mainly local. While this is
so, the future of the telcos and
the over-the-top providers is
closely linked: for all the imbal-
ance between them, they are in
fact highly interdependent.
1
youtube is a trademark of google, inc. 2 facebook is a trademark of facebook, inc. 3 google is a trademark of google, inc.
how do we create
a digital society?
What’s desperately needed is a
shared vision, especially in
europe, to ensure that society
continues to explore and reap the
benefits of digital technology.
Why? Because the telecommuni-
cations sector is no longer a scat-
tering of independent companies
but rather a matrix of intercon-
nected businesses. this is largely
because Ip is the technology that
will underpin the networks of
tomorrow. Ip is the Internet pro-
tocol, a digital way of exchanging
information no matter what kind
of information it is. In the past,
voice, data and video needed dif-
ferent kinds of networks to carry
them: Ip can do it all.
But quality remains an issue. tra-
ditional fixed-line telephone ser-
vice comes with quality guaran-
tees: your call gets through,
doesn’t get dropped, and the
sound is good. Ip technologies,
however, have been developed
without standard rules for quality
of service or for interconnection
between Internet Service provid-
ers (ISps). ISps just promise to
make their ‘best effort’ to deliver.
Standardization is essential to
guarantee that quality of service
remains consistent from end to
end—from the point a message is
sent to the point where it is
received. And quality is exactly
what consumers expect.
What is the solution to finance
the huge investment gap? there
are only 3 options:
1. We have to increase end-user
revenues through new, enhanced
services priced according to each
user’s needs and expectations of
quality. this ability to distinguish
service quality is at the heart of
the so-called ‘net-neutrality’
debate.
the busINess book
the strAtegY book
2. We have to make sure telecoms
companies can contribute value
and earn money by providing—or
enabling others to provide—new
kinds of digital services. Key to
this will be their ability to collab-
orate with over-the-top providers
and establish wholesale pricing
schemes for network use based
on different levels of service.
•••
19
2010 AnnuAl report
 techNological chaNge
europe: fALLINg behINd?
It’s been a marathon of change for
european telcos over the past five
years—and the biggest disruptions are
still to come. they have to overhaul
their business models, and fast.
What will it take? A change-ready
environment, starting with a common
european vision for the industry.
aution: disruptive
c change ahead
Industry observers have
called the recent rapid increase in
mobile data an ‘explosion’ with
good reason. the magnitude and
speed of change we’ve seen with
the rise of smartphone use has
never been experienced with any
innovation before—and we are
still just on the eve of the mobile
Internet.
How did it come about? the first
contributor was extremely fast
adoption of new technology. In
1999, one human being out of six
had a mobile phone. By 2010, it
was seven out of 10. the second
is the enhanced capability of the
devices themselves: roughly 10
percent of all mobile phones
today can connect to the Internet,
and 70 percent will be able to do
so by 2015. the 400 biggest cit-
ies in the world will be home to
13,000 smartphones for every
square kilometer in 2015, com-
pared to 400 today.
18
2010 AnnuAl report
gabrielle gautHey
stats: 19 years in the industry
position: executive vp, global government and
public affairs, alcatel-lucent
Favorite saying:
“turbulence ahead: disruptive thinking urgently needed.”
last but not least, some 90 per-
cent of mobile usage by 2015 will
be able to send and receive video.
If just one of every five smart-
phones were to simultaneously
connect to the network in such a
scenario, demand would soar by
a factor of 30. this means signifi-
cant investments are needed in
every area of the network to
increase capacity. estimates for
europe alone put that investment
at around 380 billion euros over
the coming decade, 100 billion of
which will be for wireless access.
And in fact most regions of the
world are seeing this spending
happen: in Asia, the u.S., russia
and eastern europe. It seems that
Central and Western europe are
lagging behind.
this is not Alexander graham
bell’s business model
the traditional business model
for telecommunications, which
goes back all the way to the tele-
phone’s inventor, Alexander
Graham Bell, is coming to an end.
network companies today can no
longer make enough money sell-
ing voice minutes that are priced
based on the distance a call trav-
els, and can’t turn the data cours-
ing through their systems into
revenue even though the volume
of voice, data and video is grow-
ing. As a result, telecommunica-
tions companies are reluctant and
even unable to finance the net-
work upgrades they need to make
to keep up with user demand.
outdated interconnection agree-
ments—which govern how they
allow others to use their net-
works—and services piggyback-
ing on their networks from so-
called ‘over-the-top’ providers
who deliver applications like
Youtube,1 Facebook2 and Google3
to telco customers without any
fees for network use, are com-
pounding the problem. Most
the magnitude and speed of
change we’ve seen with
the rise of smartphone use
has never been experienced
with any innovation before.
painful is the fact that these
over-the-toppers are enjoying
fast revenue growth, a stunning
increase in market capitalization,
and a very different price-to-
earnings ratio than the network
operators. they have very dif-
ferent business models and are
often global players, while telcos
remain mainly local. While this is
so, the future of the telcos and
the over-the-top providers is
closely linked: for all the imbal-
ance between them, they are in
fact highly interdependent.
1
youtube is a trademark of google, inc. 2 facebook is a trademark of facebook, inc. 3 google is a trademark of google, inc.
how do we create
a digital society?
What’s desperately needed is a
shared vision, especially in
europe, to ensure that society
continues to explore and reap the
benefits of digital technology.
Why? Because the telecommuni-
cations sector is no longer a scat-
tering of independent companies
but rather a matrix of intercon-
nected businesses. this is largely
because Ip is the technology that
will underpin the networks of
tomorrow. Ip is the Internet pro-
tocol, a digital way of exchanging
information no matter what kind
of information it is. In the past,
voice, data and video needed dif-
ferent kinds of networks to carry
them: Ip can do it all.
But quality remains an issue. tra-
ditional fixed-line telephone ser-
vice comes with quality guaran-
tees: your call gets through,
doesn’t get dropped, and the
sound is good. Ip technologies,
however, have been developed
without standard rules for quality
of service or for interconnection
between Internet Service provid-
ers (ISps). ISps just promise to
make their ‘best effort’ to deliver.
Standardization is essential to
guarantee that quality of service
remains consistent from end to
end—from the point a message is
sent to the point where it is
received. And quality is exactly
what consumers expect.
What is the solution to finance
the huge investment gap? there
are only 3 options:
1. We have to increase end-user
revenues through new, enhanced
services priced according to each
user’s needs and expectations of
quality. this ability to distinguish
service quality is at the heart of
the so-called ‘net-neutrality’
debate.
the busINess book
the strAtegY book
2. We have to make sure telecoms
companies can contribute value
and earn money by providing—or
enabling others to provide—new
kinds of digital services. Key to
this will be their ability to collab-
orate with over-the-top providers
and establish wholesale pricing
schemes for network use based
on different levels of service.
•••
19
2010 AnnuAl report
•••
Any arrangements, of course,
have to be governed by protec-
tive conditions: telecommunica-
tions companies should not be
able to discriminate harmfully
against competitors or customers
in their wholesale pricing, and
they should be transparent about
network performance.
3. But we also have to imagine
new investment models that
allow telecommunications com-
panies to secure the funds they
need to upgrade their networks
techNological chaNge
thIs Is Not
Your fAther’s Network
Smarter, more streamlined and far more efficient,
networks in 2015 are going to look and act very
differently than the ones we know today. Here are
five ways we can expect them to change.
very decade seems to
e bring its own technol-
ogy trend. Broadband
and the Internet were the phe-
nomena of the 1990s; wireless
broadband and smart devices the
hot stuff of the 2000s. My sug-
gestion is that in 10 years’ time
we’ll be looking back at this as
the decade of the network—but a
network unlike any we’ve experi-
enced before. the way I see it, by
2015 there will be five big shifts
underway.
20
2010 AnnuAl report
to meet new service and perfor-
mance demands. the previous
two points will certainly contrib-
ute to this, but in addition it
seems clear that sharing the net-
work infrastructure in a profit-
able way also has to be part of
the mix.
taking these steps is the only
way to guarantee europe does
not fall behind the rest of the
world as it goes digital in
the coming years. While we can-
not afford to underestimate the
marcus weldon
stats: 15 years in the industry
position: chief technology officer, alcatel-lucent
Favorite saying: “Simplify the complex, connect different ideas,
and therein lies the technological magic.”
the network
will be your computer
think of a pC today: it has a proc-
essor, some memory and storage
d i ff i c u l t i es a ss o ci a te d w i t h
potentially conflicting interests
among the different players, the
fact is their futures are intercon-
nected and telcos and over-the-
top providers must come togeth-
er to move forward. this will no
doubt require a clear strategic
vision and a strong political will
to encourage and foster a global
and broad commitment.
gabrielle gauthey
(a hard drive). It also has an inter-
nal communications network—
circuitry that shuffles informa-
tion around inside the machine.
Applications run in the pC on its
processor. Cloud computing (this
is the ‘cloud’ everyone keeps talk-
ing about) takes the same princi-
ple and moves the pieces hun-
dreds or even thousands of
kilometers apart, so the storage
can be in one place, the comput-
ing power in another and the dis-
play (e.g. your smartphone)
somewhere—anywhere—else. And
all this is connected together by a with the cloud, someone
very high performance telecom-
munications network to deliver in south africa using
the app. Since the network is really
at the heart of this new comput- a simple smartphone
ing paradigm, and will connect
you to whatever you need, when- will have access to
ever you need it, in a very real
sense, the network will be the the same capabilities
basic building block of your com-
puter. And a very important ben- as someone in
efit of this new structure is that
south carolina using
even simple devices can deliver a
rich set of apps, since all the com-
the latest tablet.
plex processing is done in the
cloud. So now someone sitting in
South Africa using a simpler
smartphone will have access to
the same capabilities as someone
in South Carolina using the latest
tablet. this digital ‘inclusiveness’
will be one of the most profound such as smartphones and tablets, some of the processing that used
changes we have ever observed but also in the capacity or ‘band- to have to be done on the user’s
in global commerce and commu- width’ of the network. And what machine, making the video work
nities. we are now seeing is that it’s better and stream anywhere,
the network will be smart
starting to make economic sense
to actually run applications in the
anytime, to any device.
the busINess book
the strAtegY book
the costs of computer processing, cloud—as well as in the network the network will be ‘open’
memory and storage are all com- itself. that sounds cool, but what For many years, the providers of
ing down according to Moore’s does it mean? It means that the traditional communications ser-
law, which essentially says the network learns about the applica- vices (voice, data, and tV/video)
number of components on a com- tions running over it and dynam- operated their networks in an iso-
puter chip doubles every two ically improves the app delivery lated, closed-off way. that’s start-
years. this leads to ever decreas- to create the best user experi- ing to change. More and more of
ing device costs with increasing ence. We are already seeing this them are opening up their net-
capabilities. In telecommunica- trend with video, where network works to third-party and web
tions this has led to the remark- elements cache (temporarily application developers, allowing
able evolution in mobile devices store) video files and handle •••
21
2010 AnnuAl report
•••
Any arrangements, of course,
have to be governed by protec-
tive conditions: telecommunica-
tions companies should not be
able to discriminate harmfully
against competitors or customers
in their wholesale pricing, and
they should be transparent about
network performance.
3. But we also have to imagine
new investment models that
allow telecommunications com-
panies to secure the funds they
need to upgrade their networks
techNological chaNge
thIs Is Not
Your fAther’s Network
Smarter, more streamlined and far more efficient,
networks in 2015 are going to look and act very
differently than the ones we know today. Here are
five ways we can expect them to change.
very decade seems to
e bring its own technol-
ogy trend. Broadband
and the Internet were the phe-
nomena of the 1990s; wireless
broadband and smart devices the
hot stuff of the 2000s. My sug-
gestion is that in 10 years’ time
we’ll be looking back at this as
the decade of the network—but a
network unlike any we’ve experi-
enced before. the way I see it, by
2015 there will be five big shifts
underway.
20
2010 AnnuAl report
to meet new service and perfor-
mance demands. the previous
two points will certainly contrib-
ute to this, but in addition it
seems clear that sharing the net-
work infrastructure in a profit-
able way also has to be part of
the mix.
taking these steps is the only
way to guarantee europe does
not fall behind the rest of the
world as it goes digital in
the coming years. While we can-
not afford to underestimate the
marcus weldon
stats: 15 years in the industry
position: chief technology officer, alcatel-lucent
Favorite saying: “Simplify the complex, connect different ideas,
and therein lies the technological magic.”
the network
will be your computer
think of a pC today: it has a proc-
essor, some memory and storage
d i ff i c u l t i es a ss o ci a te d w i t h
potentially conflicting interests
among the different players, the
fact is their futures are intercon-
nected and telcos and over-the-
top providers must come togeth-
er to move forward. this will no
doubt require a clear strategic
vision and a strong political will
to encourage and foster a global
and broad commitment.
gabrielle gauthey
(a hard drive). It also has an inter-
nal communications network—
circuitry that shuffles informa-
tion around inside the machine.
Applications run in the pC on its
processor. Cloud computing (this
is the ‘cloud’ everyone keeps talk-
ing about) takes the same princi-
ple and moves the pieces hun-
dreds or even thousands of
kilometers apart, so the storage
can be in one place, the comput-
ing power in another and the dis-
play (e.g. your smartphone)
somewhere—anywhere—else. And
all this is connected together by a with the cloud, someone
very high performance telecom-
munications network to deliver in south africa using
the app. Since the network is really
at the heart of this new comput- a simple smartphone
ing paradigm, and will connect
you to whatever you need, when- will have access to
ever you need it, in a very real
sense, the network will be the the same capabilities
basic building block of your com-
puter. And a very important ben- as someone in
efit of this new structure is that
south carolina using
even simple devices can deliver a
rich set of apps, since all the com-
the latest tablet.
plex processing is done in the
cloud. So now someone sitting in
South Africa using a simpler
smartphone will have access to
the same capabilities as someone
in South Carolina using the latest
tablet. this digital ‘inclusiveness’
will be one of the most profound such as smartphones and tablets, some of the processing that used
changes we have ever observed but also in the capacity or ‘band- to have to be done on the user’s
in global commerce and commu- width’ of the network. And what machine, making the video work
nities. we are now seeing is that it’s better and stream anywhere,
the network will be smart
starting to make economic sense
to actually run applications in the
anytime, to any device.
the busINess book
the strAtegY book
the costs of computer processing, cloud—as well as in the network the network will be ‘open’
memory and storage are all com- itself. that sounds cool, but what For many years, the providers of
ing down according to Moore’s does it mean? It means that the traditional communications ser-
law, which essentially says the network learns about the applica- vices (voice, data, and tV/video)
number of components on a com- tions running over it and dynam- operated their networks in an iso-
puter chip doubles every two ically improves the app delivery lated, closed-off way. that’s start-
years. this leads to ever decreas- to create the best user experi- ing to change. More and more of
ing device costs with increasing ence. We are already seeing this them are opening up their net-
capabilities. In telecommunica- trend with video, where network works to third-party and web
tions this has led to the remark- elements cache (temporarily application developers, allowing
able evolution in mobile devices store) video files and handle •••
21
2010 AnnuAl report
•••
those partners to mash up the
network’s capabilities with other
web services to create new, previ-
ously unimaginable applications.
new business models emerging
from this will allow networks to
grow in a sustainable way (mean-
ing the operators won’t have to
overspend or build an excess of
infrastructure to keep pace with
demand). this creates a ‘win-win-
win’ scenario: better economics
for network operators, better-
functioning applications, and a
compelling new experience for
the end user. We are already see-
ing this with the emergence of
partnerships between operators
and application providers in
online gaming and video delivery,
and in the momentum building
around the Wholesale Applica-
tions Community (WAC)—an alli-
ance of operators and network
and device vendors working to
define a common set of program-
ming tools that will give develop-
ers access to network capabilities
in a consistent, unified way.
the network will be unified
right now there are separate
transport networks for wireless
and traditional wire-based voice
and data communication, but by
2015 they’ll have been combined
into a single, high-performance
network with wireless (3G and
lte) and wired (DSl and Fiber)
‘access edges’ that connect to the
end users. this will allow users to
access their favorite apps and
services whenever and however
they like: maybe by a ’wired’
computer connection; maybe
wirelessly using a smartphone or
tablet, or even from the screen in
their lte connected car—what-
ever device they choose. the
22
2010 AnnuAl report
point is we will no longer have to
even think about connectivity:
our devices and the network will
hook us up in a way that best
suits our needs at any given
moment, and allows us to move
seamlessly from one device to
another with the same experi-
ence and with access to all our
favorite apps and content.
the network will be green
Bell labs predicts that in the next
several years network capacity is
going to have to grow to 30 times
its present level to handle all the
activity generated by smart
devices and tablets. there will
also be more information to pro-
cess as machine-to-machine com-
munication (devices talking to
other devices) exceeds person-to-
person communication (people
sending messages to each other).
this could cause a huge increase
in energy consumption—and relat-
ed costs for operators—if we don’t
find ways of making networks
more energy efficient. Some fig-
ures to put this in context: pub-
lished data shows that the two
largest telecom operators in the
u.S. accounted for 0.6 percent of
the country’s energy consumption
in 2008. Imagine what that would
climb to with a 30 times increase
in network capacity! Fortunately,
many organizations are putting a
real focus on reining in the energy
costs of networks. It’s a challenge
that transcends a single vendor or
operator—collaboration is needed,
which is why Alcatel-lucent
decided to bring players together
to come up with solutions through
the Greentouch™ consortium.
With these five developments,
we’ll see an unprecedented rise of
new applications and capabilities
with accessibility for all, inde–
pendent of location or socio–
economics. We’ll have more free-
dom and choice in the ways we
connect. And innovative compa-
nies and individuals everywhere
will have the oppor tunit y to
explore the possibilities of solu-
tions and services that never
before existed.
marcus weldoN
our shared Future
the future Is CLoser
thAN You thINk
Alexander Graham Bell predicted in 1891
that “...the day would come when the man at
the telephone would be able to see the
distant person to whom he was speaking.”
As right as he was, he’d probably be amazed at
what his invention has become. And at what
it’s going to be—sooner than we think.
ven people who don’t
e closely follow the ups
and downs of the tech-
nology industry know telecom-
munications is evolving at a blis-
tering pace.
What was breakthrough innova-
tion just a few years ago is now
co m m o n p l a ce o r d i s ca rd e d .
Seemly overnight we are seeing
radically new business models,
incredible social interactions and
environmentally sustainable
solutions on an unprecedented
scale. even more astonishing, the
pace of these changes continues
to accelerate.
As technology’s ability to support
ever more complex features and
interactions evolves, industry
thought leaders are losing their
ability to predict the speed and
scale of the impact these new
capabilities make on the way the
world communicates. the tech-
nology landscape is littered with
the whitepapers and predictions
of technologists who failed to see
the next curve.
gee rittenHouse
stats: 18 years in the industry
position: vp, Bell labs research
chairman, greentouch™ consortium
Favorite saying: “In times of change, learners inherit the earth,
while the learned find themselves beautifully equipped to deal
with a world that no longer exists.” • eric Hoffer
Seeing ahead is naturally always We at Bell labs spend a lot of
a challenge. We as humans tend time thinking about and discuss-
to think linearly in terms of time, ing the future. But rather than
progress and consequences—even coming at it from a technology
though we know from life’s perspective and trying to guess
everyday experiences that the how a current technology will
world does not evolve in an evolve over time, we prefer to
the busINess book
the strAtegY book
orderly, easy-to-predict manner. observe human nature, which is
fairly constant; to listen to our
this doesn’t mean we should give customers’ concerns and then
up trying to visualize the future. focus on the fundamental ele-
In fact, we do a fairly good job at ments of the problem. this allows
predicting general trends—much us to simultaneously come up
better, anyway, than we can pre- with unique solutions to relevant
cisely predict whether a particu- problems but also create inven-
lar protocol, application or device tions and insights that transform
will be the next big thing or not. our industry.
trends evolve more slowly. •••
23
2010 AnnuAl report
•••
those partners to mash up the
network’s capabilities with other
web services to create new, previ-
ously unimaginable applications.
new business models emerging
from this will allow networks to
grow in a sustainable way (mean-
ing the operators won’t have to
overspend or build an excess of
infrastructure to keep pace with
demand). this creates a ‘win-win-
win’ scenario: better economics
for network operators, better-
functioning applications, and a
compelling new experience for
the end user. We are already see-
ing this with the emergence of
partnerships between operators
and application providers in
online gaming and video delivery,
and in the momentum building
around the Wholesale Applica-
tions Community (WAC)—an alli-
ance of operators and network
and device vendors working to
define a common set of program-
ming tools that will give develop-
ers access to network capabilities
in a consistent, unified way.
the network will be unified
right now there are separate
transport networks for wireless
and traditional wire-based voice
and data communication, but by
2015 they’ll have been combined
into a single, high-performance
network with wireless (3G and
lte) and wired (DSl and Fiber)
‘access edges’ that connect to the
end users. this will allow users to
access their favorite apps and
services whenever and however
they like: maybe by a ’wired’
computer connection; maybe
wirelessly using a smartphone or
tablet, or even from the screen in
their lte connected car—what-
ever device they choose. the
22
2010 AnnuAl report
point is we will no longer have to
even think about connectivity:
our devices and the network will
hook us up in a way that best
suits our needs at any given
moment, and allows us to move
seamlessly from one device to
another with the same experi-
ence and with access to all our
favorite apps and content.
the network will be green
Bell labs predicts that in the next
several years network capacity is
going to have to grow to 30 times
its present level to handle all the
activity generated by smart
devices and tablets. there will
also be more information to pro-
cess as machine-to-machine com-
munication (devices talking to
other devices) exceeds person-to-
person communication (people
sending messages to each other).
this could cause a huge increase
in energy consumption—and relat-
ed costs for operators—if we don’t
find ways of making networks
more energy efficient. Some fig-
ures to put this in context: pub-
lished data shows that the two
largest telecom operators in the
u.S. accounted for 0.6 percent of
the country’s energy consumption
in 2008. Imagine what that would
climb to with a 30 times increase
in network capacity! Fortunately,
many organizations are putting a
real focus on reining in the energy
costs of networks. It’s a challenge
that transcends a single vendor or
operator—collaboration is needed,
which is why Alcatel-lucent
decided to bring players together
to come up with solutions through
the Greentouch™ consortium.
With these five developments,
we’ll see an unprecedented rise of
new applications and capabilities
with accessibility for all, inde–
pendent of location or socio–
economics. We’ll have more free-
dom and choice in the ways we
connect. And innovative compa-
nies and individuals everywhere
will have the oppor tunit y to
explore the possibilities of solu-
tions and services that never
before existed.
marcus weldoN
our shared Future
the future Is CLoser
thAN You thINk
Alexander Graham Bell predicted in 1891
that “...the day would come when the man at
the telephone would be able to see the
distant person to whom he was speaking.”
As right as he was, he’d probably be amazed at
what his invention has become. And at what
it’s going to be—sooner than we think.
ven people who don’t
e closely follow the ups
and downs of the tech-
nology industry know telecom-
munications is evolving at a blis-
tering pace.
What was breakthrough innova-
tion just a few years ago is now
co m m o n p l a ce o r d i s ca rd e d .
Seemly overnight we are seeing
radically new business models,
incredible social interactions and
environmentally sustainable
solutions on an unprecedented
scale. even more astonishing, the
pace of these changes continues
to accelerate.
As technology’s ability to support
ever more complex features and
interactions evolves, industry
thought leaders are losing their
ability to predict the speed and
scale of the impact these new
capabilities make on the way the
world communicates. the tech-
nology landscape is littered with
the whitepapers and predictions
of technologists who failed to see
the next curve.
gee rittenHouse
stats: 18 years in the industry
position: vp, Bell labs research
chairman, greentouch™ consortium
Favorite saying: “In times of change, learners inherit the earth,
while the learned find themselves beautifully equipped to deal
with a world that no longer exists.” • eric Hoffer
Seeing ahead is naturally always We at Bell labs spend a lot of
a challenge. We as humans tend time thinking about and discuss-
to think linearly in terms of time, ing the future. But rather than
progress and consequences—even coming at it from a technology
though we know from life’s perspective and trying to guess
everyday experiences that the how a current technology will
world does not evolve in an evolve over time, we prefer to
the busINess book
the strAtegY book
orderly, easy-to-predict manner. observe human nature, which is
fairly constant; to listen to our
this doesn’t mean we should give customers’ concerns and then
up trying to visualize the future. focus on the fundamental ele-
In fact, we do a fairly good job at ments of the problem. this allows
predicting general trends—much us to simultaneously come up
better, anyway, than we can pre- with unique solutions to relevant
cisely predict whether a particu- problems but also create inven-
lar protocol, application or device tions and insights that transform
will be the next big thing or not. our industry.
trends evolve more slowly. •••
23
2010 AnnuAl report
 we know devices and capacity
alone won’t make the video
transformation happen.
video has to become much easier
to use and integrate into daily life.
•••
hot trends on the way
Video
In the foreseeable future we see
the emergence of three large-
scale trends, starting with video.
We have watched movies for over
100 years. the first videophone
(the picturephone®) was invented
more than 40 years ago. now with
mobile devices having the capa-
bility to support video communi-
cations, and with new wireless
technology increasing the capac-
ity of networks to deliver video to
customers, widespread video
communication is a reality. this is
not just an extension of two-way
voice communications; it is the
opportunity to create an entirely
new experience.
As an example, imagine walking
into a large store and instantly a
video-based store applet (mini
application) is downloaded to
your phone. now you have a ‘per-
sonal attendant’ that can help you
navigate to the products you are
interested in or find the nearest
sale item.
Coupling this with machine-to-
machine communications, the
store ‘recognizes’ the product you
have picked up and shown inter-
est in. It can then send you recom-
mendations about similar prod-
ucts that complement the item,
and can direct you to the section
in the store where they are locat-
ed. You’ll even receive an image
24
2010 AnnuAl report
of the item to help you recognize
it on the shelf. When you leave
the store, the application is imme-
diately deleted from your device.
We know that devices and capac-
ity alone won’t make the video
transformation happen. Video
has to become much easier to use
and integrate into daily life, along
with the latest techniques for
‘virtual reality.’ So Bell labs is
also working on new technologies
that allow people to be immersed
in a meeting, conversation, or
activity as if they were actually
physically present. We call this
immersive experience “better
than being there.”
seNsor Networks
the second major trend we fore-
see is the deployment of sensors
throughout the environment. this
will significantly increase the
interaction between people and
objects. the initial sensor deploy-
m e n t w i l l b e i n c l u st e r s t o
improve the efficiency of trans-
portation, energy, healthcare and
the home, and then will spread
farther. the sensors will be
installed on any object and inte-
grated with other programs using
simple web interfaces—making it
easy for parents, as an example,
to monitor children and appli-
ances within their homes.
coNNectiVity
the final trend is an increase in
connectivity—for instance, giving
fiber optic or wireless networks
more capacity. technologies are
emerging that will substantially
expand connectivity at a lower
cost than has been possible up to
now. And these technologies will
be virtually invisible—not mar-
ring the cityscape with antennas
or bulky equipment—and sustain-
able. Beyond providing a simple
connection with increased capac-
ity, future network connectivity
will also be able to process video
streams, collect sensor data and
personalize information for
users, all while reducing the net-
work’s environmental impact.
these trends are not just exciting
but are also fully interwoven with
each other, together bringing
about a richer communication
experience. large-scale connec-
tivity, with video communications
technologies that are easy to use
and sensors that are seamlessly
integrated in the local environ-
ment, will create an experience
that is very different than the one
we have today.
When will all this be available?
Sooner than we think. Given the
speed at which the world evolves,
what we might imagine 15 years
from now will likely become real-
ity in just five.
gee ritteNhouse
our shared Future
You AIN’t seeN
NothINg Yet
technology revolutions, unlike others,
don’t happen overnight. Innovations combine,
are fine-tuned, and finally reveal new
possibilities. that’s when they produce
significant changes. And that’s exactly
the point digital technologies are at today.
e begin our journey into
w the digital future on a
train. traveling across
europe, let’s say. We made our
bookings online, from a smart-
phone, between business meet-
ings. In the station, we were
greeted by interactive kiosks
offering round-the-clock informa-
tion and ‘augmented reality
applications’ that provide virtual,
3D directions to our departure
platform. now, relaxing on board,
we can take advantage of multi-
media screens that deliver up-to-
date schedule and traffic infor-
mation, weather forecasts for our
intended destination and enter-
tainment services including tV,
video on demand and online
shopping. When we arrive, our
s m a r t p h o n e s a uto m a t i c a l l y
receive information at the station
about nearby hotels, restaurants
and other services—all delivered
wirelessly.
this is the picture of life in a digi-
tal world, and it extends virtually
everywhere.
olivia Qiu
stats: 14 years in the industry
position: global sales head,
alcatel-lucent strategic industries
Favorite saying: “enjoy the difficulties—and have fun!”
Your environment
will be aware
people feel there’s been a revolu-
tion going on the past five years,
but it’s happened mostly within
the communications industry. We
haven’t seen it spread out to
other aspects of our lives: But it’s
going to—starting now.
Automated systems in cities will
manage traffic, operating light
changes at the busiest intersec-
tions to reduce commuting times
and congestion—not only keeping
traffic flowing smoothly but also
helping reduce the harmful envi-
ro n m e n t a l effe c t s of i d l i n g
engines. Intelligent highways will
direct drivers to the nearest park-
and-ride for transfer to public
transport. Information streamed
to vehicles will help drivers find
parking spots without having to
circle the block 15 times. When
accidents occur, the ‘aware’ urban
environment will ensure that
police or ambulance services are
dispatched appropriately—and
the busINess book
the strAtegY book
that traffic is redirected to avoid
jams.
broadband:
Not just for telcos anymore
new technology such as lte
(long-term evolution, the next
generation of wireless, also called
4G) will provide public safety and
emergency services with high-
•••
25
2010 AnnuAl report
 we know devices and capacity
alone won’t make the video
transformation happen.
video has to become much easier
to use and integrate into daily life.
•••
hot trends on the way
Video
In the foreseeable future we see
the emergence of three large-
scale trends, starting with video.
We have watched movies for over
100 years. the first videophone
(the picturephone®) was invented
more than 40 years ago. now with
mobile devices having the capa-
bility to support video communi-
cations, and with new wireless
technology increasing the capac-
ity of networks to deliver video to
customers, widespread video
communication is a reality. this is
not just an extension of two-way
voice communications; it is the
opportunity to create an entirely
new experience.
As an example, imagine walking
into a large store and instantly a
video-based store applet (mini
application) is downloaded to
your phone. now you have a ‘per-
sonal attendant’ that can help you
navigate to the products you are
interested in or find the nearest
sale item.
Coupling this with machine-to-
machine communications, the
store ‘recognizes’ the product you
have picked up and shown inter-
est in. It can then send you recom-
mendations about similar prod-
ucts that complement the item,
and can direct you to the section
in the store where they are locat-
ed. You’ll even receive an image
24
2010 AnnuAl report
of the item to help you recognize
it on the shelf. When you leave
the store, the application is imme-
diately deleted from your device.
We know that devices and capac-
ity alone won’t make the video
transformation happen. Video
has to become much easier to use
and integrate into daily life, along
with the latest techniques for
‘virtual reality.’ So Bell labs is
also working on new technologies
that allow people to be immersed
in a meeting, conversation, or
activity as if they were actually
physically present. We call this
immersive experience “better
than being there.”
seNsor Networks
the second major trend we fore-
see is the deployment of sensors
throughout the environment. this
will significantly increase the
interaction between people and
objects. the initial sensor deploy-
m e n t w i l l b e i n c l u st e r s t o
improve the efficiency of trans-
portation, energy, healthcare and
the home, and then will spread
farther. the sensors will be
installed on any object and inte-
grated with other programs using
simple web interfaces—making it
easy for parents, as an example,
to monitor children and appli-
ances within their homes.
coNNectiVity
the final trend is an increase in
connectivity—for instance, giving
fiber optic or wireless networks
more capacity. technologies are
emerging that will substantially
expand connectivity at a lower
cost than has been possible up to
now. And these technologies will
be virtually invisible—not mar-
ring the cityscape with antennas
or bulky equipment—and sustain-
able. Beyond providing a simple
connection with increased capac-
ity, future network connectivity
will also be able to process video
streams, collect sensor data and
personalize information for
users, all while reducing the net-
work’s environmental impact.
these trends are not just exciting
but are also fully interwoven with
each other, together bringing
about a richer communication
experience. large-scale connec-
tivity, with video communications
technologies that are easy to use
and sensors that are seamlessly
integrated in the local environ-
ment, will create an experience
that is very different than the one
we have today.
When will all this be available?
Sooner than we think. Given the
speed at which the world evolves,
what we might imagine 15 years
from now will likely become real-
ity in just five.
gee ritteNhouse
our shared Future
You AIN’t seeN
NothINg Yet
technology revolutions, unlike others,
don’t happen overnight. Innovations combine,
are fine-tuned, and finally reveal new
possibilities. that’s when they produce
significant changes. And that’s exactly
the point digital technologies are at today.
e begin our journey into
w the digital future on a
train. traveling across
europe, let’s say. We made our
bookings online, from a smart-
phone, between business meet-
ings. In the station, we were
greeted by interactive kiosks
offering round-the-clock informa-
tion and ‘augmented reality
applications’ that provide virtual,
3D directions to our departure
platform. now, relaxing on board,
we can take advantage of multi-
media screens that deliver up-to-
date schedule and traffic infor-
mation, weather forecasts for our
intended destination and enter-
tainment services including tV,
video on demand and online
shopping. When we arrive, our
s m a r t p h o n e s a uto m a t i c a l l y
receive information at the station
about nearby hotels, restaurants
and other services—all delivered
wirelessly.
this is the picture of life in a digi-
tal world, and it extends virtually
everywhere.
olivia Qiu
stats: 14 years in the industry
position: global sales head,
alcatel-lucent strategic industries
Favorite saying: “enjoy the difficulties—and have fun!”
Your environment
will be aware
people feel there’s been a revolu-
tion going on the past five years,
but it’s happened mostly within
the communications industry. We
haven’t seen it spread out to
other aspects of our lives: But it’s
going to—starting now.
Automated systems in cities will
manage traffic, operating light
changes at the busiest intersec-
tions to reduce commuting times
and congestion—not only keeping
traffic flowing smoothly but also
helping reduce the harmful envi-
ro n m e n t a l effe c t s of i d l i n g
engines. Intelligent highways will
direct drivers to the nearest park-
and-ride for transfer to public
transport. Information streamed
to vehicles will help drivers find
parking spots without having to
circle the block 15 times. When
accidents occur, the ‘aware’ urban
environment will ensure that
police or ambulance services are
dispatched appropriately—and
the busINess book
the strAtegY book
that traffic is redirected to avoid
jams.
broadband:
Not just for telcos anymore
new technology such as lte
(long-term evolution, the next
generation of wireless, also called
4G) will provide public safety and
emergency services with high-
•••
25
2010 AnnuAl report
•••
definition views of incidents to
enable a fast and appropriate
response. live video from the
scene of a fire, for example, will
make first responders fully aware
of the situation they’re going to
face: they’ll know in advance how
severe the fire is, how many
trucks to send to the scene, and
how many people may be still
inside the building. Authorities
will connect quickly via video to
civilians and others at the scene
for close coordination, with infor-
mation rapidly exchanged to
ensure victims receive the right
assistance and care.
When broadband gets picked up
in these kinds of ways—by other
sectors, for public safety, health-
care, transportation and more—it
will cease to be just the domain of
the communications technology
industry. everyone will have a
share, a stake, a say.
the one thing
we can’t do without
everything I’ve described so far
will depend on the availability of
one essential resource: electricity.
We are all aware today about the
concerns of having a stable, reli-
able energy supply long into the
future. those concerns are putting
terrific pressure on us to secure
new energy sources, avoid wasting
the energy that is currently avail-
able, and respect the environment.
If we’re going to ask utility com-
panies to better manage their
energy resources, we need to give
them the right tools. they’ll need
more detailed knowledge of what
customers need, and of how
they’re using energy on a daily
basis. enter the smart grid—a
26
2010 AnnuAl report
everything
i’ve described so far
will depend on
the availability of
one essential
resource: electricity.
power network that provides
two-way communication between
electricity users and utilities for
superior energy management.
Smart grids will become one of
the most attractive areas of green
innovation and investment in the
coming years. not only do they
give utilities more control over
their energy resources, but they
also will help energy service pro-
viders keep their operating costs
down. (even the energy explora-
tion sector, which extracts oil, gas,
coal and the like, is feeling the
pressure and trying to become
more efficient at exploring, min-
ing, transporting and delivering
raw energy sources.)
the transformation
imperative
to adopt smart grid technology,
utilities will have to transform
themselves similar to the way tel-
cos have done in the years since
1960. the difference is that while
the phone companies took 50
years to move from traditional
technology to today’s digitally
driven infrastructure, utilities
don’t have this luxury: they have
10 to 15 years at the most to
change, to capitalize on the oppor-
tunity and remain in control of the
supply and demand process.
When they do take the leap, the
payback will be rapid: outages will
be reported automatically and
service restoration will be faster,
resulting in a more reliable energy
supply. Consumers will become
‘partners’ in the grid: generating
their own energy through small-
scale renewable sources such as
solar panels; storing energy more
effectively through the use of
electric vehicles and the like; and
reducing their consumption to
provide overall energy savings.
energy equipment in the field will
signal its status, meaning its useful
life will be measured accurately
instead of calculated theoretically
and technicians will have all the
knowledge and support they need
to go to the site to fix a problem.
Next stop: 2015 system to be hooked up to the some amazing changes in the last
Greener. More connected. More Internet. By the time you crack few years thanks to communica-
intuitive. that’s the future we’re open your laptop or switch on tions technology. But we ain’t
heading toward. So the next time your smartphone, it will already seen nothing yet.
you ease yourself back into a seat have happened for you. And
on a train, just think: in a few
years’ time you won’t even have
you’ll probably be greeted with
some unexpected bit of news or
oliVia Qiu
to connect to its onboard WiFi helpful information. We’ve seen
our shared Future
the worLd
Is mY smArtphoNe
one hundred years ago, a telephone was
a box on a wall. now it’s a wallet-sized device
that captures video, surfs the web, and
manages hundreds of applications. tomorrow
you may not always need your own device:
the environment around you will offer
those personalized capabilities—and more.
eering into
p the unknown
At Bell labs, we research Jeong kim
the technologies that will drive stats: 30 years in the industry
position: president Bell labs
the busINess book
the strAtegY book
the next great innovations. this
involves a fair bit of trying to
Favorite saying: “the future—make it happen!”
envision the future. our expertise
in key technical areas provides a
good guide, but of course, there
are still many categories of use of video on the Internet is unknown needs that will be met
unknowns. straining the capacity of networks, by unknown technologies. these
but perhaps not yet knowing are among the many reasons why
one such category is known which specific technology will pro- we persistently interact with cus-
unknowns : knowing, for example, vide the best solution. then there tomers and nourish our research
that the current explosion in the are the unknown unknowns — •••
27
2010 AnnuAl report
•••
definition views of incidents to
enable a fast and appropriate
response. live video from the
scene of a fire, for example, will
make first responders fully aware
of the situation they’re going to
face: they’ll know in advance how
severe the fire is, how many
trucks to send to the scene, and
how many people may be still
inside the building. Authorities
will connect quickly via video to
civilians and others at the scene
for close coordination, with infor-
mation rapidly exchanged to
ensure victims receive the right
assistance and care.
When broadband gets picked up
in these kinds of ways—by other
sectors, for public safety, health-
care, transportation and more—it
will cease to be just the domain of
the communications technology
industry. everyone will have a
share, a stake, a say.
the one thing
we can’t do without
everything I’ve described so far
will depend on the availability of
one essential resource: electricity.
We are all aware today about the
concerns of having a stable, reli-
able energy supply long into the
future. those concerns are putting
terrific pressure on us to secure
new energy sources, avoid wasting
the energy that is currently avail-
able, and respect the environment.
If we’re going to ask utility com-
panies to better manage their
energy resources, we need to give
them the right tools. they’ll need
more detailed knowledge of what
customers need, and of how
they’re using energy on a daily
basis. enter the smart grid—a
26
2010 AnnuAl report
everything
i’ve described so far
will depend on
the availability of
one essential
resource: electricity.
power network that provides
two-way communication between
electricity users and utilities for
superior energy management.
Smart grids will become one of
the most attractive areas of green
innovation and investment in the
coming years. not only do they
give utilities more control over
their energy resources, but they
also will help energy service pro-
viders keep their operating costs
down. (even the energy explora-
tion sector, which extracts oil, gas,
coal and the like, is feeling the
pressure and trying to become
more efficient at exploring, min-
ing, transporting and delivering
raw energy sources.)
the transformation
imperative
to adopt smart grid technology,
utilities will have to transform
themselves similar to the way tel-
cos have done in the years since
1960. the difference is that while
the phone companies took 50
years to move from traditional
technology to today’s digitally
driven infrastructure, utilities
don’t have this luxury: they have
10 to 15 years at the most to
change, to capitalize on the oppor-
tunity and remain in control of the
supply and demand process.
When they do take the leap, the
payback will be rapid: outages will
be reported automatically and
service restoration will be faster,
resulting in a more reliable energy
supply. Consumers will become
‘partners’ in the grid: generating
their own energy through small-
scale renewable sources such as
solar panels; storing energy more
effectively through the use of
electric vehicles and the like; and
reducing their consumption to
provide overall energy savings.
energy equipment in the field will
signal its status, meaning its useful
life will be measured accurately
instead of calculated theoretically
and technicians will have all the
knowledge and support they need
to go to the site to fix a problem.
Next stop: 2015 system to be hooked up to the some amazing changes in the last
Greener. More connected. More Internet. By the time you crack few years thanks to communica-
intuitive. that’s the future we’re open your laptop or switch on tions technology. But we ain’t
heading toward. So the next time your smartphone, it will already seen nothing yet.
you ease yourself back into a seat have happened for you. And
on a train, just think: in a few
years’ time you won’t even have
you’ll probably be greeted with
some unexpected bit of news or
oliVia Qiu
to connect to its onboard WiFi helpful information. We’ve seen
our shared Future
the worLd
Is mY smArtphoNe
one hundred years ago, a telephone was
a box on a wall. now it’s a wallet-sized device
that captures video, surfs the web, and
manages hundreds of applications. tomorrow
you may not always need your own device:
the environment around you will offer
those personalized capabilities—and more.
eering into
p the unknown
At Bell labs, we research Jeong kim
the technologies that will drive stats: 30 years in the industry
position: president Bell labs
the busINess book
the strAtegY book
the next great innovations. this
involves a fair bit of trying to
Favorite saying: “the future—make it happen!”
envision the future. our expertise
in key technical areas provides a
good guide, but of course, there
are still many categories of use of video on the Internet is unknown needs that will be met
unknowns. straining the capacity of networks, by unknown technologies. these
but perhaps not yet knowing are among the many reasons why
one such category is known which specific technology will pro- we persistently interact with cus-
unknowns : knowing, for example, vide the best solution. then there tomers and nourish our research
that the current explosion in the are the unknown unknowns — •••
27
2010 AnnuAl report

an alternative pattern
is emerging, one
in which a network of
sensors continuously
gathers information
and pushes it out to us.
•••
capacity across multiple disci-
plines of science.
even so, predicting the future is
by no means a sure bet. Five years
ago, who would have thought that
so many people around the globe
would spend so much time on
social networks like MySpace1 and
Facebook?2 And it’s certainly pos-
sible that in the next five years,
other similarly unanticipated sur-
prises will arise. nevertheless, we
can still identify several key
trends likely to shape that future.
Video: a driving force for
the networks
Video-based content—streamed
to your desktop, your laptop,
your smartphone, wherever—will
be an even more fundamental
1
MySpace is a trademark of MySpace, Inc. 2 Facebook is a trademark of Facebook, Inc.
3
Youtube is a trademark of Google, Inc. 4 Skype is a trademark of Skype limited and other related companies.
28
2010 AnnuAl report
component of how we communi-
cate in 2015. I realized how
important video had become last
year when I asked my daughter
which website she visited the
most. Her response: “Youtube.”3
It’s where she does her learning—
whether how to play the guitar or
speak Spanish. I had always
thought of Youtube3 as a substi-
tute for tV; I never considered its
other possible uses. It can be used
to share ideas, to find out how to
perform a task, or where students
can watch lectures they might
have missed.
the video boom is not just about
Youtube3-like sites. Video confer-
encing applications like Skype 4
have become increasingly popu-
lar and part of our everyday
interactions. I believe communi-
cations will migrate over the next
five years to far more ‘immersive’
experiences that make it seem as
if we are all sharing the same
physical place even while being
continents apart.
many, many sensors
—everywhere
Most of us connect over a net-
work of networks—the most com-
mon being the Internet. usually
we go looking for information
and these networks take us to it.
But an alternative pattern is
emerging, one in which a network
of sensors continuously gathers
information and, if relevant,
pushes it out to us. What sort of
sensors? Some will detect motion
or sounds; others temperature or
chemicals. they might employ
radio-frequency ID (rFID) devices
or video technologies. When cer-
tain conditions occur, these sen-
sor networks will trigger an alert
over the Internet to other
machines or people.
We’ll see these networks in our
homes, along our roads, in our
cars, and on our very person.
Sometime after 2015, I can imag-
ine sensors so small they reside
in our bloodstream and form a
self-organizing network that can
detect abnormal events, sending
messages to our doctor’s office or
to another device in our body
authorized to take corrective
action. this is the ‘somatic net-
work’, a network that operates in
the body. Sound far-fetched?
there are already numerous
implanted sensors in the market
for detecting the movements of
replacement joints, or measuring
electrical pulses of the heart.
the value of the cloud
For some, ‘cloud computing’ is
just the latest name for services
in which you access a remote
computer instead of processing
on your own computer. that’s not
quite right. the cloud is like tak-
ing all of the parts of a super
computer, scattering them to the
wind and still using it as if it was
a single asset right next to you.
All of the complex synchroniza-
tions among those parts are
retained in spite of being physi-
cally dispersed.
the beauty of this is that you’re no
longer confined to the capabilities
of your one machine, or cluster of
machines as is the case in a data
center. So when you need more
computing power, or more stor-
age, instead of buying expensive
hardware and plunking it in the
corner, you just reach out to more
pieces in the cloud for only as long
as you need them. the capabilities
of the cloud allow those pieces to
be fully integrated and synchro-
nized with your own resources.
Companies that provide commu-
nication services are beginning to
use cloud architectures in their
own networks. By 2015, many of
those service providers will likely
o f fe r h i g h l y r e l i a b l e c l o u d
resources to consumers.
energy efficiency
will be vital
throughout the information tech-
nology landscape, there is a new
menace stalking computers and
data centers. I’m not referring to
viruses or malware, but rather
the costs of the power to run
ever-faster and more powerful
computers. Dollars or euros are
only part of those costs. the larg- device at the hotel you’re visiting
er concerns are the associated the next day. It’s a compelling
heat that can literally melt pro- vision in which we can enjoy all
cessors and the unsustainable of these capabilities without
level of carbon emissions from
the generation of that power.
being limited by one’s personal
device.
As they serve growing numbers JeoNg kim
of mobile users, video consumers
and data centers, these costs
have risen to levels where many
service providers are now consid-
ering radical changes in their net-
work infrastructures. this is one
of the reasons for the strong
i n te re st i n A l c a te l - lu ce n t ’s
recently announced lightradio™,
which doubles network capacity
while halving energy consump-
tion. programs such as the Green-
touch™ initiative, whose goal is to
improve networks’ energy effi-
ciency by a factor of 1,000 will
also play a major role in achiev-
ing a sustainable future.
After 2015: communicating
without a personal device?
let me conclude with a slightly
controversial opinion. I can envi-
sion a scenario where people no
longer fully depend on their own
smartphones or other personal
computing devices. rather, as
they make themselves known via
sensor networks, they interact
with connected information dis-
plays and other appliances locat-
the busINess book
the strAtegY book
ed throughout their environ-
ment—no matter where they find
themselves. Individuals have
access to all of the same capabili-
ties (or “apps”) and personal set-
tings they would at home or in
the office. Sessions are trans-
ferred from device to device, so
that the last page of an e-book
you were reading at home is the
first page that appears on a
29
2010 AnnuAl report

an alternative pattern
is emerging, one
in which a network of
sensors continuously
gathers information
and pushes it out to us.
•••
capacity across multiple disci-
plines of science.
even so, predicting the future is
by no means a sure bet. Five years
ago, who would have thought that
so many people around the globe
would spend so much time on
social networks like MySpace1 and
Facebook?2 And it’s certainly pos-
sible that in the next five years,
other similarly unanticipated sur-
prises will arise. nevertheless, we
can still identify several key
trends likely to shape that future.
Video: a driving force for
the networks
Video-based content—streamed
to your desktop, your laptop,
your smartphone, wherever—will
be an even more fundamental
1
MySpace is a trademark of MySpace, Inc. 2 Facebook is a trademark of Facebook, Inc.
3
Youtube is a trademark of Google, Inc. 4 Skype is a trademark of Skype limited and other related companies.
28
2010 AnnuAl report
component of how we communi-
cate in 2015. I realized how
important video had become last
year when I asked my daughter
which website she visited the
most. Her response: “Youtube.”3
It’s where she does her learning—
whether how to play the guitar or
speak Spanish. I had always
thought of Youtube3 as a substi-
tute for tV; I never considered its
other possible uses. It can be used
to share ideas, to find out how to
perform a task, or where students
can watch lectures they might
have missed.
the video boom is not just about
Youtube3-like sites. Video confer-
encing applications like Skype 4
have become increasingly popu-
lar and part of our everyday
interactions. I believe communi-
cations will migrate over the next
five years to far more ‘immersive’
experiences that make it seem as
if we are all sharing the same
physical place even while being
continents apart.
many, many sensors
—everywhere
Most of us connect over a net-
work of networks—the most com-
mon being the Internet. usually
we go looking for information
and these networks take us to it.
But an alternative pattern is
emerging, one in which a network
of sensors continuously gathers
information and, if relevant,
pushes it out to us. What sort of
sensors? Some will detect motion
or sounds; others temperature or
chemicals. they might employ
radio-frequency ID (rFID) devices
or video technologies. When cer-
tain conditions occur, these sen-
sor networks will trigger an alert
over the Internet to other
machines or people.
We’ll see these networks in our
homes, along our roads, in our
cars, and on our very person.
Sometime after 2015, I can imag-
ine sensors so small they reside
in our bloodstream and form a
self-organizing network that can
detect abnormal events, sending
messages to our doctor’s office or
to another device in our body
authorized to take corrective
action. this is the ‘somatic net-
work’, a network that operates in
the body. Sound far-fetched?
there are already numerous
implanted sensors in the market
for detecting the movements of
replacement joints, or measuring
electrical pulses of the heart.
the value of the cloud
For some, ‘cloud computing’ is
just the latest name for services
in which you access a remote
computer instead of processing
on your own computer. that’s not
quite right. the cloud is like tak-
ing all of the parts of a super
computer, scattering them to the
wind and still using it as if it was
a single asset right next to you.
All of the complex synchroniza-
tions among those parts are
retained in spite of being physi-
cally dispersed.
the beauty of this is that you’re no
longer confined to the capabilities
of your one machine, or cluster of
machines as is the case in a data
center. So when you need more
computing power, or more stor-
age, instead of buying expensive
hardware and plunking it in the
corner, you just reach out to more
pieces in the cloud for only as long
as you need them. the capabilities
of the cloud allow those pieces to
be fully integrated and synchro-
nized with your own resources.
Companies that provide commu-
nication services are beginning to
use cloud architectures in their
own networks. By 2015, many of
those service providers will likely
o f fe r h i g h l y r e l i a b l e c l o u d
resources to consumers.
energy efficiency
will be vital
throughout the information tech-
nology landscape, there is a new
menace stalking computers and
data centers. I’m not referring to
viruses or malware, but rather
the costs of the power to run
ever-faster and more powerful
computers. Dollars or euros are
only part of those costs. the larg- device at the hotel you’re visiting
er concerns are the associated the next day. It’s a compelling
heat that can literally melt pro- vision in which we can enjoy all
cessors and the unsustainable of these capabilities without
level of carbon emissions from
the generation of that power.
being limited by one’s personal
device.
As they serve growing numbers JeoNg kim
of mobile users, video consumers
and data centers, these costs
have risen to levels where many
service providers are now consid-
ering radical changes in their net-
work infrastructures. this is one
of the reasons for the strong
i n te re st i n A l c a te l - lu ce n t ’s
recently announced lightradio™,
which doubles network capacity
while halving energy consump-
tion. programs such as the Green-
touch™ initiative, whose goal is to
improve networks’ energy effi-
ciency by a factor of 1,000 will
also play a major role in achiev-
ing a sustainable future.
After 2015: communicating
without a personal device?
let me conclude with a slightly
controversial opinion. I can envi-
sion a scenario where people no
longer fully depend on their own
smartphones or other personal
computing devices. rather, as
they make themselves known via
sensor networks, they interact
with connected information dis-
plays and other appliances locat-
the busINess book
the strAtegY book
ed throughout their environ-
ment—no matter where they find
themselves. Individuals have
access to all of the same capabili-
ties (or “apps”) and personal set-
tings they would at home or in
the office. Sessions are trans-
ferred from device to device, so
that the last page of an e-book
you were reading at home is the
first page that appears on a
29
2010 AnnuAl report
 deliver
ideas that

the business book

the strategy book

 deliver
ideas that

the business book

the strategy book

 letter from philippe cAmus, chairman of alcatel-lucent
the business book
the path of progress
he new Alcatel-lucent is on the
t march. 2010, the second year
of our transformation program,
has given us tangible signs of this. our
efforts in financial discipline have borne
fruit, our operational performance has
improved, and our stock has generated
renewed interest from investors. these
are indications of the soundness of our
strategy and reflect the re-emerging
core strength in our business.
our customers have expressed their sat-
isfaction with the steps we are taking.
that endorsement strengthens our abil-
ity to support them in their ongoing
changes. it has also increased our mar-
ket share and solidified our leadership
in technological innovation—whether
internet protocol (ip), which is at the
heart of network evolution, one of our
strategic pillars; or fourth-generation
wireless technologies, which provide
ultra high-speed mobile access.
We could not have the quality of prod-
ucts and technology we do without
equal or greater quality in our people.
32
2010 AnnuAl report
board of directors
Philippe Camus Olivier Piou
chairman of the board of directors independent director
Ben Verwaayen Jean-Cyril Spinetta
chief executive officer and director independent director
Daniel Bernard
independent director
i take this opportunity to applaud the Jean-Pierre Desbois
commitment of all our staff, and to rec- W. Frank Blount board observer
ognize the astute leadership of our man- independent director
Bertrand Lapraye
agement team, which has successfully Carla Cico board observer
implemented our corporate transforma- independent director
tion program harmoniously, credibly
and transparently. Stuart E. Eizenstat
independent director
Yohann Bénard
secretary-General and
it is also important to emphasize the
Louis R. Hughes secretary to the board of directors
cohesiveness of our corporate gover-
independent director
nance. from the Board of Directors and Nathalie Trolez Mazurier
its various committees—including the Lady Sylvia Jay deputy secretary
technology committee i was eager to independent director to the board of directors
put in place—to operational management
and leadership bodies, each has
Jean C. Monty
independent director
assumed its responsibilities, worked
with the others, and ensured the conti-
nuity of our decision-making process.
now the third year of our transforma-
tion program is well underway and we
remain firmly focused on delivery.
Going forward, we will demonstrate our
full potential and deepen our relation-
ships with customers while ensuring the
development of a resource that is just as corporate Governance
essential as our technological capital:
alcatel-lucent strictly complies with the applicable rules of corporate governance in france
our human capital, today based on over
and in the united states.
79,000 employees. Attracting talented
people, creating an environment that
the composition of the board of directors is aligned with alcatel-lucent’s business. the diver-
encourages the creativity of each of our
sity of its members’ profiles gives the board a set of values, skills and expertise that enriches
colleagues, drawing on the strength of
its discussions.
our diversity and international scale—all
of these are essential. By building a sus-
in the course of carrying out its various responsibilities, the board of directors has created
the strategy book
tainable international business that
specialized committees mainly composed of directors appointed by the board: the audit and
understands how to apply the full capa-
finance committee, the corporate Governance and nominating committee, the compensation
bility of its talent—an organ ization
committee and, more recently, the technology committee, created in october 2008. each
whose employees are challenged and
director is asked to be a member of one or more of these four committees.
engaged—we will follow our path of
progress over the long term.
in addition to performing its legal and regulatory duties, the board of directors regularly provides
input on alcatel-lucent’s strategic direction and the key decisions affecting its activities; it ana-
lyzes the opportunities resulting from alcatel-lucent’s research and development activities and
provides input on the main technology options selected.
33
2010 AnnuAl report
 letter from philippe cAmus, chairman of alcatel-lucent
the business book
the path of progress
he new Alcatel-lucent is on the
t march. 2010, the second year
of our transformation program,
has given us tangible signs of this. our
efforts in financial discipline have borne
fruit, our operational performance has
improved, and our stock has generated
renewed interest from investors. these
are indications of the soundness of our
strategy and reflect the re-emerging
core strength in our business.
our customers have expressed their sat-
isfaction with the steps we are taking.
that endorsement strengthens our abil-
ity to support them in their ongoing
changes. it has also increased our mar-
ket share and solidified our leadership
in technological innovation—whether
internet protocol (ip), which is at the
heart of network evolution, one of our
strategic pillars; or fourth-generation
wireless technologies, which provide
ultra high-speed mobile access.
We could not have the quality of prod-
ucts and technology we do without
equal or greater quality in our people.
32
2010 AnnuAl report
board of directors
Philippe Camus Olivier Piou
chairman of the board of directors independent director
Ben Verwaayen Jean-Cyril Spinetta
chief executive officer and director independent director
Daniel Bernard
independent director
i take this opportunity to applaud the Jean-Pierre Desbois
commitment of all our staff, and to rec- W. Frank Blount board observer
ognize the astute leadership of our man- independent director
Bertrand Lapraye
agement team, which has successfully Carla Cico board observer
implemented our corporate transforma- independent director
tion program harmoniously, credibly
and transparently. Stuart E. Eizenstat
independent director
Yohann Bénard
secretary-General and
it is also important to emphasize the
Louis R. Hughes secretary to the board of directors
cohesiveness of our corporate gover-
independent director
nance. from the Board of Directors and Nathalie Trolez Mazurier
its various committees—including the Lady Sylvia Jay deputy secretary
technology committee i was eager to independent director to the board of directors
put in place—to operational management
and leadership bodies, each has
Jean C. Monty
independent director
assumed its responsibilities, worked
with the others, and ensured the conti-
nuity of our decision-making process.
now the third year of our transforma-
tion program is well underway and we
remain firmly focused on delivery.
Going forward, we will demonstrate our
full potential and deepen our relation-
ships with customers while ensuring the
development of a resource that is just as corporate Governance
essential as our technological capital:
alcatel-lucent strictly complies with the applicable rules of corporate governance in france
our human capital, today based on over
and in the united states.
79,000 employees. Attracting talented
people, creating an environment that
the composition of the board of directors is aligned with alcatel-lucent’s business. the diver-
encourages the creativity of each of our
sity of its members’ profiles gives the board a set of values, skills and expertise that enriches
colleagues, drawing on the strength of
its discussions.
our diversity and international scale—all
of these are essential. By building a sus-
in the course of carrying out its various responsibilities, the board of directors has created
the strategy book
tainable international business that
specialized committees mainly composed of directors appointed by the board: the audit and
understands how to apply the full capa-
finance committee, the corporate Governance and nominating committee, the compensation
bility of its talent—an organ ization
committee and, more recently, the technology committee, created in october 2008. each
whose employees are challenged and
director is asked to be a member of one or more of these four committees.
engaged—we will follow our path of
progress over the long term.
in addition to performing its legal and regulatory duties, the board of directors regularly provides
input on alcatel-lucent’s strategic direction and the key decisions affecting its activities; it ana-
lyzes the opportunities resulting from alcatel-lucent’s research and development activities and
provides input on the main technology options selected.
33
2010 AnnuAl report
 the business book
2010 kEY FiguRES

the story in numbers: message from pAul tufAno,

chief financial officer

a year of growth 14%

1 revenue 16 billion (up 5.5% year-over-year) 36%

1 high leverage network™ sales: 46% of networks sales in Q4’10 18% revenues:
geographical
(versus 32% in Q1’09) breakdown

1 adjusted1 gross profit of 5.572 billion (or 34.8% of revenues)

1 adjusted1 operating income of 288 million (or 1.8% of revenues)
32%
1 300 million of fixed costs reduction
1 adjusted1 r&d expenses 2.50 billion
1 operating cash flow of 851 million
1 net cash 377 million (as of december 31, 2010) ● north america

1 cash and equivalents 5.7 billion (as of december 31, 2010)
2010 market share hiGhliGhts
No. 1
• gPON ports with 32% market share2
• CDMA with 39% market share2
• DSL access with 39% market share2
• Submarine optical networking with estimated 35% to 40%
market share6
• Packet microwave transmission with 40% market share2
• Multivendor maintenance with 20% market share5
I
● europe n 2010, we successfully executed
● asia-pacific the second year of our three-year
● rest of world transformation plan with improved
financial results and very strong momentum
alcatel-lucent revenues are fairly evenly distributed
geographically among north america;
at year-end.
europe; and asia-pacific and rest of world.
We outperformed the market and delivered
on our projections to the financial commu-
nity. that achievement was driven by a port-
folio of next-generation products and ser-
vices that is enjoying strong market traction
and the resilience of existing technologies. all
three business segments—networks, applica-
4% tions and services—contributed to the
increase in 2010 revenue, and each recorded
12%
positive operating income.
the 2010 rise in operating income reflects
revenues: higher volumes, favorable shifts in our sales
breakdown by mix and ongoing efforts to improve our cost
operating
23% base. r&d spending increased as we contin-
segment 60%
ued to invest in the next-generation tech-

the strategy book

No. 2
• 4g/LTE with 30% market share2
• iP edge routers with 23% market share4
• Terrestrial optical networking with 18% market share2
• Backbone WDM with 15% market share3
1
“adjusted” means that it excludes the main impacts from lucent’s purchase price allocation.
2
dell’oro Group. 3 ovum. 4 infonetics. 5 idc. 6 alcatel-lucent estimate.
nologies driving our growth.
our strategy has been gaining traction for the
past two years, and we are enjoying renewed
relevance across our customer base. We
closed 2010 with a very strong fourth quar-
ter—the most profitable since the merger.
We anticipate continuing that growth in
● networks
● services
2011, while streamlining the business to
● applications further reduce costs and drive more revenue
● other to the bottom line.

34 35
2010 AnnuAl report 2010 AnnuAl report
 the business book
2010 kEY FiguRES

the story in numbers: message from pAul tufAno,

chief financial officer

a year of growth 14%

1 revenue 16 billion (up 5.5% year-over-year) 36%

1 high leverage network™ sales: 46% of networks sales in Q4’10 18% revenues:
geographical
(versus 32% in Q1’09) breakdown

1 adjusted1 gross profit of 5.572 billion (or 34.8% of revenues)

1 adjusted1 operating income of 288 million (or 1.8% of revenues)
32%
1 300 million of fixed costs reduction
1 adjusted1 r&d expenses 2.50 billion
1 operating cash flow of 851 million
1 net cash 377 million (as of december 31, 2010) ● north america

1 cash and equivalents 5.7 billion (as of december 31, 2010)
2010 market share hiGhliGhts
No. 1
• gPON ports with 32% market share2
• CDMA with 39% market share2
• DSL access with 39% market share2
• Submarine optical networking with estimated 35% to 40%
market share6
• Packet microwave transmission with 40% market share2
• Multivendor maintenance with 20% market share5
I
● europe n 2010, we successfully executed
● asia-pacific the second year of our three-year
● rest of world transformation plan with improved
financial results and very strong momentum
alcatel-lucent revenues are fairly evenly distributed
geographically among north america;
at year-end.
europe; and asia-pacific and rest of world.
We outperformed the market and delivered
on our projections to the financial commu-
nity. that achievement was driven by a port-
folio of next-generation products and ser-
vices that is enjoying strong market traction
and the resilience of existing technologies. all
three business segments—networks, applica-
4% tions and services—contributed to the
increase in 2010 revenue, and each recorded
12%
positive operating income.
the 2010 rise in operating income reflects
revenues: higher volumes, favorable shifts in our sales
breakdown by mix and ongoing efforts to improve our cost
operating
23% base. r&d spending increased as we contin-
segment 60%
ued to invest in the next-generation tech-

the strategy book

No. 2
• 4g/LTE with 30% market share2
• iP edge routers with 23% market share4
• Terrestrial optical networking with 18% market share2
• Backbone WDM with 15% market share3
1
“adjusted” means that it excludes the main impacts from lucent’s purchase price allocation.
2
dell’oro Group. 3 ovum. 4 infonetics. 5 idc. 6 alcatel-lucent estimate.
nologies driving our growth.
our strategy has been gaining traction for the
past two years, and we are enjoying renewed
relevance across our customer base. We
closed 2010 with a very strong fourth quar-
ter—the most profitable since the merger.
We anticipate continuing that growth in
● networks
● services
2011, while streamlining the business to
● applications further reduce costs and drive more revenue
● other to the bottom line.

34 35
2010 AnnuAl report 2010 AnnuAl report
 the business book
MANAgEMENT TEAM

the direction setters 18

With 18 executives representing six nationalities, 12

alcatel-lucent’s international management team is focused on

one goal: the successful transformation of the company.

1ben verwaayen* 7 John dickson*

chief executive officer executive vice president
operations
2 pierre barnabé* 3

executive vice president

corporate human resources and
transformation
3tom burns*
president enterprise and
strategic industries
8 kenneth frank* 11
17
president solutions
14
9 gabrielle gauthey
executive vice president
Global Government and public affairs
10 adolfo hernandez*

4stephen a. carter* president europe, middle east and

chief marketing, strategy and africa region 5
communications officer
11philippe keryer*
5 robin dargue*
president networks 7
executive vice president 1

business and it transformation

12Jeong kim*
president bell labs 2
6Janet davidson*
13 vivek mohan*
executive vice president
Quality assurance and customer care president services
14 steve reynolds

senior vice president and

General counsel
15paul segre*
ethics and
15
president applications

compliance 16 rajeev singh-molares* 8

president asia-pacific region

Alcatel-lucent is committed to doing business 4
16
ethically, as a trusted partner and as a company 17paul tufano*
where employees want to work. its ethics and chief financial officer
compliance program is designed to prevent and 18robert vrij*

the strategy book

detect violations of law, regulation and com-
pany policy, and to promote an ethical business president americas region
culture. to reduce the risk of corruption, Alcatel-
lucent enforces a strict zero-tolerance policy 10

against the use of sales agents and consultants, 9

with a new sales channel screening and selec-
tion process designed to ensure that resellers, 13
distributors and other third parties are used
appropriately.

* management committee

36 37
2010 AnnuAl report 2010 AnnuAl report
 the business book
MANAgEMENT TEAM

the direction setters 18

With 18 executives representing six nationalities, 12

alcatel-lucent’s international management team is focused on

one goal: the successful transformation of the company.

1ben verwaayen* 7 John dickson*

chief executive officer executive vice president
operations
2 pierre barnabé* 3

executive vice president

corporate human resources and
transformation
3tom burns*
president enterprise and
strategic industries
8 kenneth frank* 11
17
president solutions
14
9 gabrielle gauthey
executive vice president
Global Government and public affairs
10 adolfo hernandez*

4stephen a. carter* president europe, middle east and

chief marketing, strategy and africa region 5
communications officer
11philippe keryer*
5 robin dargue*
president networks 7
executive vice president 1

business and it transformation

12Jeong kim*
president bell labs 2
6Janet davidson*
13 vivek mohan*
executive vice president
Quality assurance and customer care president services
14 steve reynolds

senior vice president and

General counsel
15paul segre*
ethics and
15
president applications

compliance 16 rajeev singh-molares* 8

president asia-pacific region

Alcatel-lucent is committed to doing business 4
16
ethically, as a trusted partner and as a company 17paul tufano*
where employees want to work. its ethics and chief financial officer
compliance program is designed to prevent and 18robert vrij*

the strategy book

detect violations of law, regulation and com-
pany policy, and to promote an ethical business president americas region
culture. to reduce the risk of corruption, Alcatel-
lucent enforces a strict zero-tolerance policy 10

against the use of sales agents and consultants, 9

with a new sales channel screening and selec-
tion process designed to ensure that resellers, 13
distributors and other third parties are used
appropriately.

* management committee

36 37
2010 AnnuAl report 2010 AnnuAl report
 the business book
ALCATEL-LuCENT WORLDWiDE
our
businesses
the international innovator we build connections
every day across the globe, more than
With headquarters in paris and operations in 130 countries, 79,000 people pour their energy, cre-
alcatel-lucent is helping the world’s biggest communications ativity and technical knowledge into
inventing the future of communications
companies meet growing demand for video, data and at Alcatel-lucent. tackling the toughest
voice services. technology challenges facing the world’s
network companies, enterprises, indus-
tries and governments, we help our cus-
tomers connect people to an ever-
expanding world of digital information,
entertainment and vital services.

our strength in innovation stems from

Bell labs—a peerless research and
development organization with more
than 27,000 active patents worldwide
● russia
and a brilliant team of researchers and
● ireland ● romania technical experts in a broad variety of
● ● canada
● united Kingdom ● poland fields.
● ● ● ● Belgium ● slovakia
● ● ● france we engineer opportunities
● ● Germany A leader in mobile, fixed, ip and optical
● ● ● ● usA ● south Korea technologies and a pioneer in applica-
● netherlands
● turkey
tions and services, Alcatel-lucent serves
● italy
● israel ● ● ● china the world through regional businesses
● spain in the Americas, Asia-pacific, and
● taiwan europe, the middle east and Africa.

our networks division provides the com-

● ● ● india
plete set of technologies customers need
to meet subscriber expectations, wheth-
● singapore
er their services are wireless, wireline or
both. our services division designs, inte-
grates, manages and maintains networks
worldwide. Applications and solutions
● ● Brazil rounds out the mix, developing and
maintaining software products that allow
● ● Australia communications companies to offer new,
high-demand services for any type of
device—and providing voice, data and call
center solutions to enterprises.

the strategy book

Worldwide presence
more than 130 countries
our customers today are experiencing
the most significant period of change in
● americas the recent history of telecommunica-
● europe, middle east and africa (emea) tions. With our support, they are trans-
● asia-pacific (apac) forming their operations and evolving
employees employee nationalities their networks, offering universal access
more than 79,000 more than 100 ● executive briefing centers to the digital services their subscribers
● research centers want—and reestablishing their place as
● product & solution development centers providers of value by enabling the cre-
● ip transformation centers ation of new applications.

38 39
2010 AnnuAl report 2010 AnnuAl report
 the business book
ALCATEL-LuCENT WORLDWiDE
our
businesses
the international innovator we build connections
every day across the globe, more than
With headquarters in paris and operations in 130 countries, 79,000 people pour their energy, cre-
alcatel-lucent is helping the world’s biggest communications ativity and technical knowledge into
inventing the future of communications
companies meet growing demand for video, data and at Alcatel-lucent. tackling the toughest
voice services. technology challenges facing the world’s
network companies, enterprises, indus-
tries and governments, we help our cus-
tomers connect people to an ever-
expanding world of digital information,
entertainment and vital services.

our strength in innovation stems from

Bell labs—a peerless research and
development organization with more
than 27,000 active patents worldwide
● russia
and a brilliant team of researchers and
● ireland ● romania technical experts in a broad variety of
● ● canada
● united Kingdom ● poland fields.
● ● ● ● Belgium ● slovakia
● ● ● france we engineer opportunities
● ● Germany A leader in mobile, fixed, ip and optical
● ● ● ● usA ● south Korea technologies and a pioneer in applica-
● netherlands
● turkey
tions and services, Alcatel-lucent serves
● italy
● israel ● ● ● china the world through regional businesses
● spain in the Americas, Asia-pacific, and
● taiwan europe, the middle east and Africa.

our networks division provides the com-

● ● ● india
plete set of technologies customers need
to meet subscriber expectations, wheth-
● singapore
er their services are wireless, wireline or
both. our services division designs, inte-
grates, manages and maintains networks
worldwide. Applications and solutions
● ● Brazil rounds out the mix, developing and
maintaining software products that allow
● ● Australia communications companies to offer new,
high-demand services for any type of
device—and providing voice, data and call
center solutions to enterprises.

the strategy book

Worldwide presence
more than 130 countries
our customers today are experiencing
the most significant period of change in
● americas the recent history of telecommunica-
● europe, middle east and africa (emea) tions. With our support, they are trans-
● asia-pacific (apac) forming their operations and evolving
employees employee nationalities their networks, offering universal access
more than 79,000 more than 100 ● executive briefing centers to the digital services their subscribers
● research centers want—and reestablishing their place as
● product & solution development centers providers of value by enabling the cre-
● ip transformation centers ation of new applications.

38 39
2010 AnnuAl report 2010 AnnuAl report
 the business book
AMERiCAS

a market at top speed

stretching the length of the western hemisphere, the americas
region is home to some of the world’s most innovative
communications service providers and fastest growing markets.
CuSTOMER
STORiES

america movil Putting our energy into

faster, better, smarter
america movil is one of the biggest mobile
operators in latin america. With customers in
11 countries eager to make video and
multimedia part of their daily user experience,
the company brought in alcatel-lucent to help
deliver high-speed mobile internet, video calling
and other multimedia services while keeping
operating costs to a minimum. thanks to
alcatel-lucent’s experience in ip transformation—
making networks leaner and more powerful
through ip technology—america movil is poised to
be an out-in-front provider of the next wave of
high-speed services to enrich users’ lives.
green wireless
if we want to enjoy a future of everywhere,
all-the-time wireless communications,
we need to reduce the rapidly rising energy
demands of wireless networks. Alcatel-Lucent’s
efforts on this front were recognized with
three LTE North America Awards—including
“Best green LTE Product or initiative” for
developing small, energy-efficient wireless cells,
as well as for solutions that allow telcos to set up
wireless networks in areas without reliable power
and the greenTouch™ global consortium on
the environmental impact of communications.

23% Deploying home of

year-on-year
growth in 2010
4G LtE networks
for 2 of the bell at&t
for north
America
world's largest
telcos
labs from 3g to 4g
alcatel-lucent was selected as equipment supplier
for at&t’s lte (long-term evolution) mobile
broadband network. continued work with at&t
markEt trENds through this multi-year agreement will allow
the company to take full advantage of
Wallet, keys…smartphone. these days in the americas, when people leave compatibility between existing 3G equipment and
home they want to go connected. demand for 24/7 access has saturated forthcoming lte upgrades. alcatel-lucent
networks with video, application and data traffic—posing both a challenge demonstrated
and an opportunity for service providers.
sprint’s “netWork vision” they are ready to
Capacity is one part of the equation. providers need to grow their networks realizing the value deliver innovative,

the strategy book

to serve more users and carry more content. but they can’t do so the way to keep up with never-before-seen growth in
they used to. the old ways make networks more complex, not less, and spike mobile service usage, sprint called on cost-effective,
operators’ costs. the alcatel-lucent high leverage network™ does exactly
the reverse, enabling operators to offer a whole new world of services.
alcatel-lucent to bring its multiple solutions
together into one seamless network with
state-of-the art
a single type of base station to handle every technology and
Changing the business model is the other part. by opening up and partner-
ing with other players—application developers, content providers, device
different kind of wireless signal. drawing on
alcatel-lucent’s complete understanding of
financial value
makers and enterprises—operators can turn the built-in capabilities of their sprint’s existing network technologies, to sprint.
ROBERT VRiJ networks into new streams of revenue, rapidly delivering more of what their these changes will make it easier for
president customers want and accessing a market that in the u.s. alone amounts to the company to meet customers’ expectations— STEVE ELFMAN,
americas reGion $100 billion. without skyrocketing operating costs. president, sprint

40 41
2010 AnnuAl report 2010 AnnuAl report
 the business book
AMERiCAS

a market at top speed

stretching the length of the western hemisphere, the americas
region is home to some of the world’s most innovative
communications service providers and fastest growing markets.
CuSTOMER
STORiES

america movil Putting our energy into

faster, better, smarter
america movil is one of the biggest mobile
operators in latin america. With customers in
11 countries eager to make video and
multimedia part of their daily user experience,
the company brought in alcatel-lucent to help
deliver high-speed mobile internet, video calling
and other multimedia services while keeping
operating costs to a minimum. thanks to
alcatel-lucent’s experience in ip transformation—
making networks leaner and more powerful
through ip technology—america movil is poised to
be an out-in-front provider of the next wave of
high-speed services to enrich users’ lives.
green wireless
if we want to enjoy a future of everywhere,
all-the-time wireless communications,
we need to reduce the rapidly rising energy
demands of wireless networks. Alcatel-Lucent’s
efforts on this front were recognized with
three LTE North America Awards—including
“Best green LTE Product or initiative” for
developing small, energy-efficient wireless cells,
as well as for solutions that allow telcos to set up
wireless networks in areas without reliable power
and the greenTouch™ global consortium on
the environmental impact of communications.

23% Deploying home of

year-on-year
growth in 2010
4G LtE networks
for 2 of the bell at&t
for north
America
world's largest
telcos
labs from 3g to 4g
alcatel-lucent was selected as equipment supplier
for at&t’s lte (long-term evolution) mobile
broadband network. continued work with at&t
markEt trENds through this multi-year agreement will allow
the company to take full advantage of
Wallet, keys…smartphone. these days in the americas, when people leave compatibility between existing 3G equipment and
home they want to go connected. demand for 24/7 access has saturated forthcoming lte upgrades. alcatel-lucent
networks with video, application and data traffic—posing both a challenge demonstrated
and an opportunity for service providers.
sprint’s “netWork vision” they are ready to
Capacity is one part of the equation. providers need to grow their networks realizing the value deliver innovative,

the strategy book

to serve more users and carry more content. but they can’t do so the way to keep up with never-before-seen growth in
they used to. the old ways make networks more complex, not less, and spike mobile service usage, sprint called on cost-effective,
operators’ costs. the alcatel-lucent high leverage network™ does exactly
the reverse, enabling operators to offer a whole new world of services.
alcatel-lucent to bring its multiple solutions
together into one seamless network with
state-of-the art
a single type of base station to handle every technology and
Changing the business model is the other part. by opening up and partner-
ing with other players—application developers, content providers, device
different kind of wireless signal. drawing on
alcatel-lucent’s complete understanding of
financial value
makers and enterprises—operators can turn the built-in capabilities of their sprint’s existing network technologies, to sprint.
ROBERT VRiJ networks into new streams of revenue, rapidly delivering more of what their these changes will make it easier for
president customers want and accessing a market that in the u.s. alone amounts to the company to meet customers’ expectations— STEVE ELFMAN,
americas reGion $100 billion. without skyrocketing operating costs. president, sprint

40 41
2010 AnnuAl report 2010 AnnuAl report
 the business book
EuROPE, MiDDLE EAST, AFRiCA

connectivity is king
from togolese entrepreneurs shaping their country’s economic
future to teens in paris enjoying mobile gaming, the people of
CuSTOMER
europe, the middle east and africa thrive on being connected. STORiES

bdbos
the definition of trust alcatel-lucent
no systems are more mission critical than the ones people
count on for safety—which is why Germany’s federal agency proposed the best
for digital radio (bdbos), which runs the nation's public
safety network, appointed alcatel-lucent to enhance and
technical solution from
operate its communications infrastructure. partnering with ibm edge to core,
and Germany’s iabG (industrieanlagen-betriebsgesellschaft),
alcatel-lucent was chosen for its unmatched ability to
along with strong
handle complex, large-scale projects and so ensure more services and its proven
than half a million police, fire, rescue, customs and other
government users stay connected.
experience in
transportation
bt’s 21cn infrastructure
blueprint for the network of the future deployments.
as demand for video-rich content continues to boom,
bt is embracing radical change by accelerating its move TERJE STEiNSVik,
serving
market center of toward a unified, smart ip network and an open application head of technoloGY,
every major
leader in IP Alcatel-lucent
telecoms environment that will support the development of Jernbaneverket (nordics)
and optical submarine
service
networking expertise new business models. to quickly and cost–effectively
provider
introduce new rich-media services to a growing base of
wholesale and retail subscribers, bt is taking advantage of
alcatel-lucent’s high leverage network™ (hln) architecture
markEt trENds and transformational services. this evolution of
the office is
bt’s infrastructure will increase capacity and bandwidth
The broadband revolution is on. europe, the middle east and africa (emea) while providing an enhanced customer experience. wherever you are
is as diverse a slice of the globe as you can get, home to some of the world’s Teleworking—using email, teleconferencing,
key developing economies and some of its most mature. forget the differ- videoconferencing and the like—significantly
ences, though—no matter where you go one thing is constant: the desire for mts-ukraine reduces the environmental impact
high-speed connectivity. bring on the future associated with commuter travel. in France,
alcatel-lucent and mts-ukraine are building on nearly a third of all Alcatel-Lucent staff
work from home at least one day a week,

the strategy book

Telcos are stepping up. to deliver the services customers are clamoring for,
communication companies are well on the way to turning their networks
into high-speed ip (internet protocol) networks, using digital technology to
be faster, more flexible and more responsive to changing consumer needs.
to keep costs low and capacity high, they’re also sharing network equipment
with each other.
Content is everywhere. in europe alone, smartphone use has more than
ADOLFO HERNANDEz
president europe, doubled in the space of two years. alcatel-lucent is helping mobile compa-
middle east and africa nies capitalize on that growth by making sure they’re poised to profit from
reGion rocketing demand for mobile applications.
their longstanding partnership to ready the ukrainian mobile
communications company’s network for the future.
in 2010, the two collaborated on a trial of alcatel-lucent’s
long-term evolution (lte), giving mts-ukraine
the opportunity to assess the benefits of next-generation
(4G) mobile technology. last year as well, mts-ukraine
chose alcatel-lucent to outfit its network with intelligent
digital ip/mpls mobile backhaul capabilities—enabling
the company to offer customers high-speed next-generation
mobile and premium ip-based services while cutting costs,
increasing capacity and boosting overall quality.
cutting their collective greenhouse gas
emissions by 2,600 tons per year.
That’s roughly equal to removing nearly
500 passenger cars from the road.
The company achieved further efficiencies
worldwide through flexible office space
arrangements last year, shrinking its total
footprint by 300,000 square meters.

42 43
2010 AnnuAl report 2010 AnnuAl report
 the business book
EuROPE, MiDDLE EAST, AFRiCA

connectivity is king
from togolese entrepreneurs shaping their country’s economic
future to teens in paris enjoying mobile gaming, the people of
CuSTOMER
europe, the middle east and africa thrive on being connected. STORiES

bdbos
the definition of trust alcatel-lucent
no systems are more mission critical than the ones people
count on for safety—which is why Germany’s federal agency proposed the best
for digital radio (bdbos), which runs the nation's public
safety network, appointed alcatel-lucent to enhance and
technical solution from
operate its communications infrastructure. partnering with ibm edge to core,
and Germany’s iabG (industrieanlagen-betriebsgesellschaft),
alcatel-lucent was chosen for its unmatched ability to
along with strong
handle complex, large-scale projects and so ensure more services and its proven
than half a million police, fire, rescue, customs and other
government users stay connected.
experience in
transportation
bt’s 21cn infrastructure
blueprint for the network of the future deployments.
as demand for video-rich content continues to boom,
bt is embracing radical change by accelerating its move TERJE STEiNSVik,
serving
market center of toward a unified, smart ip network and an open application head of technoloGY,
every major
leader in IP Alcatel-lucent
telecoms environment that will support the development of Jernbaneverket (nordics)
and optical submarine
service
networking expertise new business models. to quickly and cost–effectively
provider
introduce new rich-media services to a growing base of
wholesale and retail subscribers, bt is taking advantage of
alcatel-lucent’s high leverage network™ (hln) architecture
markEt trENds and transformational services. this evolution of
the office is
bt’s infrastructure will increase capacity and bandwidth
The broadband revolution is on. europe, the middle east and africa (emea) while providing an enhanced customer experience. wherever you are
is as diverse a slice of the globe as you can get, home to some of the world’s Teleworking—using email, teleconferencing,
key developing economies and some of its most mature. forget the differ- videoconferencing and the like—significantly
ences, though—no matter where you go one thing is constant: the desire for mts-ukraine reduces the environmental impact
high-speed connectivity. bring on the future associated with commuter travel. in France,
alcatel-lucent and mts-ukraine are building on nearly a third of all Alcatel-Lucent staff
work from home at least one day a week,

the strategy book

Telcos are stepping up. to deliver the services customers are clamoring for,
communication companies are well on the way to turning their networks
into high-speed ip (internet protocol) networks, using digital technology to
be faster, more flexible and more responsive to changing consumer needs.
to keep costs low and capacity high, they’re also sharing network equipment
with each other.
Content is everywhere. in europe alone, smartphone use has more than
ADOLFO HERNANDEz
president europe, doubled in the space of two years. alcatel-lucent is helping mobile compa-
middle east and africa nies capitalize on that growth by making sure they’re poised to profit from
reGion rocketing demand for mobile applications.
their longstanding partnership to ready the ukrainian mobile
communications company’s network for the future.
in 2010, the two collaborated on a trial of alcatel-lucent’s
long-term evolution (lte), giving mts-ukraine
the opportunity to assess the benefits of next-generation
(4G) mobile technology. last year as well, mts-ukraine
chose alcatel-lucent to outfit its network with intelligent
digital ip/mpls mobile backhaul capabilities—enabling
the company to offer customers high-speed next-generation
mobile and premium ip-based services while cutting costs,
increasing capacity and boosting overall quality.
cutting their collective greenhouse gas
emissions by 2,600 tons per year.
That’s roughly equal to removing nearly
500 passenger cars from the road.
The company achieved further efficiencies
worldwide through flexible office space
arrangements last year, shrinking its total
footprint by 300,000 square meters.

42 43
2010 AnnuAl report 2010 AnnuAl report
 the business book
ASiA-PACiFiC

home of the communications

technology revolution
With two-thirds of the world’s population to connect,
asia-pacific is a hotbed of activity when it comes to
the uptake of communications technologies.
CuSTOMER
STORiES

bharti airtel
breaking new ground in india
bharti airtel, the largest telecom operator in india with
over 160 million subscribers, embarked on a program for
ip transformation and sought the help of a global partner
sharing experience, educating
to transform, grow and manage its fixed-line access young people: alcatel-Lucent
network. airtel chose to partner with alcatel-lucent Foundation in China
for this task, based on their in-depth knowledge, relevant Alcatel-Lucent volunteers visited
experience and superior competency. alcatel-lucent primary schools in Shanghai and Beijing
today supports airtel through a first-of-its kind last year to help students better understand
joint venture in india, in their quest for providing the basics of economics and global trade.
service excellence to their fixed-line customers. Putting their creativity to the test, the
children took part in a 24-team contest
to design products and marketing
china mobile, china telecom and programs for a country of their choice.
china unicom The volunteers coached the students and
highly unique
Growth
diverse joint venture:
building china’s network future served as judges, handing out awards for
every quarter: the chinese telecoms market is growing at breakneck speed.
customer Alcatel-lucent innovation, teamwork and best presentation.
2010
base shanghai Bell three of the country’s leading telcos—china mobile, china The young people’s inspired work was
telecom and china unicom—together asked alcatel-lucent exhibited at the Shanghai World Expo.
to enable next-generation voice and data services with
ip and high-speed networking technology. respectful of
markEt trENds the chinese context and culture, alcatel-lucent helped
the three companies transform their networks and made
Millions are on the move. every day, the number of mobile subscribers in a long-term commitment to strengthen the local presence of
china and india continues to skyrocket. in the last three months of 2010, alcatel-lucent shanghai bell.
the two countries added a total of 90 million mobile phone subscribers.

Connectivity abounds. south korea is the most connected country in the nbn this key contract
the business of broadband for all

the strategy book

region, with Japan and singapore close behind—and australia in the middle
of the biggest network installation project in the world. and there are still
opportunities to grow, with 81 percent of homes eager for fixed high-speed
connectivity and 1.2 billion more potential mobile phone subscribers ready
to be served.
What will unleash universal access? communications companies in asia-
RAJEEV pacific need to reduce their energy consumption and operating costs to go
SiNgH-MOLARES the next step and deliver universal connectivity. successfully putting broad-
president band in the hands of everyone in the region could boost asia-pacific’s gross
asia-pacific reGion domestic product by $19 billion.
australia has identified universal high-speed broadband enables nbn co to
access as a key enabler of its future digital economy.
the national broadband network will connect all premises
deliver a world-class,
across the country, providing wholesale-only open access fibre-based,
to support a new value chain of broadband providers,
applications and innovative business models. alcatel-lucent
high-speed network
is helping nbn co—the company assigned to design, for australia.
build and operate the national broadband network—
establish its infrastructure footprint and develop kEViN BROWN,
its capacity to meet australia’s future broadband needs. head of corporate services, nbn

44 45
2010 AnnuAl report 2010 AnnuAl report
 the business book
ASiA-PACiFiC

home of the communications

technology revolution
With two-thirds of the world’s population to connect,
asia-pacific is a hotbed of activity when it comes to
the uptake of communications technologies.
CuSTOMER
STORiES

bharti airtel
breaking new ground in india
bharti airtel, the largest telecom operator in india with
over 160 million subscribers, embarked on a program for
ip transformation and sought the help of a global partner
sharing experience, educating
to transform, grow and manage its fixed-line access young people: alcatel-Lucent
network. airtel chose to partner with alcatel-lucent Foundation in China
for this task, based on their in-depth knowledge, relevant Alcatel-Lucent volunteers visited
experience and superior competency. alcatel-lucent primary schools in Shanghai and Beijing
today supports airtel through a first-of-its kind last year to help students better understand
joint venture in india, in their quest for providing the basics of economics and global trade.
service excellence to their fixed-line customers. Putting their creativity to the test, the
children took part in a 24-team contest
to design products and marketing
china mobile, china telecom and programs for a country of their choice.
china unicom The volunteers coached the students and
highly unique
Growth
diverse joint venture:
building china’s network future served as judges, handing out awards for
every quarter: the chinese telecoms market is growing at breakneck speed.
customer Alcatel-lucent innovation, teamwork and best presentation.
2010
base shanghai Bell three of the country’s leading telcos—china mobile, china The young people’s inspired work was
telecom and china unicom—together asked alcatel-lucent exhibited at the Shanghai World Expo.
to enable next-generation voice and data services with
ip and high-speed networking technology. respectful of
markEt trENds the chinese context and culture, alcatel-lucent helped
the three companies transform their networks and made
Millions are on the move. every day, the number of mobile subscribers in a long-term commitment to strengthen the local presence of
china and india continues to skyrocket. in the last three months of 2010, alcatel-lucent shanghai bell.
the two countries added a total of 90 million mobile phone subscribers.

Connectivity abounds. south korea is the most connected country in the nbn this key contract
the business of broadband for all

the strategy book

region, with Japan and singapore close behind—and australia in the middle
of the biggest network installation project in the world. and there are still
opportunities to grow, with 81 percent of homes eager for fixed high-speed
connectivity and 1.2 billion more potential mobile phone subscribers ready
to be served.
What will unleash universal access? communications companies in asia-
RAJEEV pacific need to reduce their energy consumption and operating costs to go
SiNgH-MOLARES the next step and deliver universal connectivity. successfully putting broad-
president band in the hands of everyone in the region could boost asia-pacific’s gross
asia-pacific reGion domestic product by $19 billion.
australia has identified universal high-speed broadband enables nbn co to
access as a key enabler of its future digital economy.
the national broadband network will connect all premises
deliver a world-class,
across the country, providing wholesale-only open access fibre-based,
to support a new value chain of broadband providers,
applications and innovative business models. alcatel-lucent
high-speed network
is helping nbn co—the company assigned to design, for australia.
build and operate the national broadband network—
establish its infrastructure footprint and develop kEViN BROWN,
its capacity to meet australia’s future broadband needs. head of corporate services, nbn

44 45
2010 AnnuAl report 2010 AnnuAl report
 the business book
STRATEgiC iNDuSTRiES ENTERPRiSE

when reliability is a must we’re in business

from autobahns and railways to emergency services and from education and healthcare to financial services and
power grids, we rely on complex systems to keep us safe, secure hospitality, enterprises understand exactly the benefits
and productive. and those systems rely on alcatel-lucent. innovative communications can bring—and want them now.

markEt trENds
There’s no such thing as “good enough.” not when it comes to
our guests are extremely happy with the entire service
the systems societies depend on for essential services, safety value chain, including the communication systems.
and defense. that’s why customers around the world trust our
networking experience and expertise—for reliable results, ADARSH JATiA, eXecutive director, four seasons hotel, mumbai
every time. alcatel-lucent strategic industries provides solu-
tions for:
Transportation authorities—enabling smart systems that
streamline operations and reduce environmental impacts. markEt trENds
Energy providers—allowing power utilities to manage ener-
gy use in real time, conserving resources and providing for a There would be no business without communications. cus-
cleaner environment. tomer engagement, employee collaboration and productivity
TOM BuRNS Public-safety organizations—enabling police forces, fire all depend on instant access to people and information. so
president enterprise and departments and emergency medical services to ensure mis- does being present and competitive in a global market that
strateGic industries sion-critical operations while reining in costs. never sleeps.

Enterprises are innovators. like the people who work in them,

enterprises are embracing innovation in communication: social
media, video, and mobility. they want real-time applications
to be delivered over networks that know what users need and
what device they need it on.

Everyone’s included. by bringing together their employees,

partners and customers, alcatel-lucent is not only helping
enterprises be more productive and collaborative but also
CuSTOMER
allowing them to engage their business in a whole new kind
STORiES
of conversation.
CuSTOMER
STORiES
european investment bank four seasons hotels
finance on the move have mobility, will travel
the european investment bank (eib) serves With 84 hotels in 34 countries, four seasons
chattanooGa’s epb eurotunnel

the strategy book

communities at the speed of ‘smart’
a municipal utility and technology trailblazer,
chattanooga’s epb is working with alcatel-lucent
to build north america’s first smart grid on a
fiber-optic network. the system, which can collect
and process information about electricity use
in real time, gives customers more control over
their consumption by providing up-to-the-minute
information about how much energy they’re using
and what it costs.
trains for speed, network for safety
for trains racing through the tunnel under
the english channel between france and the u.k.,
reliable ground-to-train communications
are essential. alcatel-lucent is taking the existing
communications system to today’s highest
technical standard, allowing authorities to
manage cross-channel traffic more safely and
efficiently while preparing for future signaling
requirements.
the 27 member states of the european union.
When moving into its new head office in
luxembourg, it decided to provide its increasingly
connected and mobile workforce with efficient
productivity and communications solutions.
combining its expertise in advanced telephony and
collaboration applications with offerings from
a rich variety of partners, alcatel-lucent worked
with the eib to create exactly the right mix of tools,
improving employee and customer engagement
within the institution’s mobile environment.
hotels is dedicated to perfecting the travel
experience. for its new hotel in mumbai,
the hospitality giant sought to provide guests
with innovative communications services
beyond high-speed internet—including
mobility within the hotel and its shops,
multilingual voice guides and Wifi access.
thanks to the networking and mobility expertise
of alcatel-lucent, four seasons is delivering
its guests an optimal, secure communications
experience.

46 47
2010 AnnuAl report 2010 AnnuAl report
 the business book
STRATEgiC iNDuSTRiES ENTERPRiSE

when reliability is a must we’re in business

from autobahns and railways to emergency services and from education and healthcare to financial services and
power grids, we rely on complex systems to keep us safe, secure hospitality, enterprises understand exactly the benefits
and productive. and those systems rely on alcatel-lucent. innovative communications can bring—and want them now.

markEt trENds
There’s no such thing as “good enough.” not when it comes to
our guests are extremely happy with the entire service
the systems societies depend on for essential services, safety value chain, including the communication systems.
and defense. that’s why customers around the world trust our
networking experience and expertise—for reliable results, ADARSH JATiA, eXecutive director, four seasons hotel, mumbai
every time. alcatel-lucent strategic industries provides solu-
tions for:
Transportation authorities—enabling smart systems that
streamline operations and reduce environmental impacts. markEt trENds
Energy providers—allowing power utilities to manage ener-
gy use in real time, conserving resources and providing for a There would be no business without communications. cus-
cleaner environment. tomer engagement, employee collaboration and productivity
TOM BuRNS Public-safety organizations—enabling police forces, fire all depend on instant access to people and information. so
president enterprise and departments and emergency medical services to ensure mis- does being present and competitive in a global market that
strateGic industries sion-critical operations while reining in costs. never sleeps.

Enterprises are innovators. like the people who work in them,

enterprises are embracing innovation in communication: social
media, video, and mobility. they want real-time applications
to be delivered over networks that know what users need and
what device they need it on.

Everyone’s included. by bringing together their employees,

partners and customers, alcatel-lucent is not only helping
enterprises be more productive and collaborative but also
CuSTOMER
allowing them to engage their business in a whole new kind
STORiES
of conversation.
CuSTOMER
STORiES
european investment bank four seasons hotels
finance on the move have mobility, will travel
the european investment bank (eib) serves With 84 hotels in 34 countries, four seasons
chattanooGa’s epb eurotunnel

the strategy book

communities at the speed of ‘smart’
a municipal utility and technology trailblazer,
chattanooga’s epb is working with alcatel-lucent
to build north america’s first smart grid on a
fiber-optic network. the system, which can collect
and process information about electricity use
in real time, gives customers more control over
their consumption by providing up-to-the-minute
information about how much energy they’re using
and what it costs.
trains for speed, network for safety
for trains racing through the tunnel under
the english channel between france and the u.k.,
reliable ground-to-train communications
are essential. alcatel-lucent is taking the existing
communications system to today’s highest
technical standard, allowing authorities to
manage cross-channel traffic more safely and
efficiently while preparing for future signaling
requirements.
the 27 member states of the european union.
When moving into its new head office in
luxembourg, it decided to provide its increasingly
connected and mobile workforce with efficient
productivity and communications solutions.
combining its expertise in advanced telephony and
collaboration applications with offerings from
a rich variety of partners, alcatel-lucent worked
with the eib to create exactly the right mix of tools,
improving employee and customer engagement
within the institution’s mobile environment.
hotels is dedicated to perfecting the travel
experience. for its new hotel in mumbai,
the hospitality giant sought to provide guests
with innovative communications services
beyond high-speed internet—including
mobility within the hotel and its shops,
multilingual voice guides and Wifi access.
thanks to the networking and mobility expertise
of alcatel-lucent, four seasons is delivering
its guests an optimal, secure communications
experience.

46 47
2010 AnnuAl report 2010 AnnuAl report
 the business book
SERViCES
operational
transformation
to meet the demand for new high-speed services,
communications companies aren’t just changing
their technology—they’re also reinventing the ways
they do business. and they’re not doing it alone.
It takEs a PartNEr
new opportunities are springing up almost daily for network companies to
increase the value they deliver their customers—through high-quality video
services, innovative applications and the freedom to connect anywhere,
anytime, using any device. seizing those opportunities demands rapid
action. alcatel-lucent is helping customers the world over gain the flexibil-
ity and responsiveness they need by transforming their operations, strip-
ping the complexity out of the network so it can run in the most efficient
and streamlined way—and guiding them through the transformation process
based on the experience of a large number of ip (internet protocol) and
mobile network migrations.
markEt trENds
Every network has a price tag. capeX and opeX—what it costs to build a
network and what it costs to run one—have shot up with the demand for
more speed, more video, more applications. the old ways of growing net-
works and making money from them have reached their limits.
iP is the answer. communications companies can make their networks smart-
er, leaner and more adaptable by basing them on ip technology. ip acceler-
ates the development and delivery of new kinds of services and applications,
meaning telcos can offer more of what people want, where and when they
want it.
There’s no need to go it alone. it’s a tall order for any organization to take
on the task of transformation and still carry out the daily business of serv-
ing its customers. from managing network operations to providing whole-
network design, build and migration services, alcatel-lucent is a trusted
ViVEk MOHAN partner that relieves the transformation burden so companies can compete
president services and thrive as they evolve.
48
2010 AnnuAl report
CuSTOMER
STORiES
vivacom
change is good—with the right partner
“our decision to enter a strategic partnership with
alcatel-lucent is designed to guarantee our fixed
and mobile subscribers a network of constantly
increasing quality over the long term,” said
bernard moscheni, ceo of vivacom. “alcatel-lucent
is the most appropriately equipped to meet our
network operations requirements with greater
speed, flexibility and cost synergies than we could
alone. and with this step, we’re once again playing
a pioneering role in the bulgarian market.”
taking green to the desert
Diesel generators are usually the fallback for
powering communications equipment in areas
not served by reliable electrical grids. To avoid
the costs and environmental harm that come from
burning fuel, the Alcatel-Lucent Alternative
Energy Program is helping companies set up
wireless networks that run on solar, wind and
other alternative energy sources. By the end of
2010, Alcatel-Lucent had installed more than
500 alternative energy-powered base stations
suited to all weather conditions and physical
environments—including deployments in Africa,
the Middle East and india.
vodafone Qatar
a faster path to market
vodafone Qatar is part of the world's leading
international mobile communications group,
the vodafone Group. to realize its forward-looking
vision “to be the most admired brand in Qatar,”
the company turned to alcatel-lucent for a fully
outsourced, end-to-end managed services solution
for a brand new 2G/3G mobile network.
this turnkey solution enables vodafone to
quickly and efficiently take advantage of
an important opportunity to enter the mobile
market with competitive next-generation services.
alcatel-lucent
was the perfect fit,
the perfect price,
the strategy book
with the experience
we needed: a company
vodafone trusted and
valued.
BASSAM AL-iBRAHiM,
technoloGY vendor manaGer,
vodafone Qatar
49
2010 AnnuAl report
 the business book
SERViCES
operational
transformation
to meet the demand for new high-speed services,
communications companies aren’t just changing
their technology—they’re also reinventing the ways
they do business. and they’re not doing it alone.
It takEs a PartNEr
new opportunities are springing up almost daily for network companies to
increase the value they deliver their customers—through high-quality video
services, innovative applications and the freedom to connect anywhere,
anytime, using any device. seizing those opportunities demands rapid
action. alcatel-lucent is helping customers the world over gain the flexibil-
ity and responsiveness they need by transforming their operations, strip-
ping the complexity out of the network so it can run in the most efficient
and streamlined way—and guiding them through the transformation process
based on the experience of a large number of ip (internet protocol) and
mobile network migrations.
markEt trENds
Every network has a price tag. capeX and opeX—what it costs to build a
network and what it costs to run one—have shot up with the demand for
more speed, more video, more applications. the old ways of growing net-
works and making money from them have reached their limits.
iP is the answer. communications companies can make their networks smart-
er, leaner and more adaptable by basing them on ip technology. ip acceler-
ates the development and delivery of new kinds of services and applications,
meaning telcos can offer more of what people want, where and when they
want it.
There’s no need to go it alone. it’s a tall order for any organization to take
on the task of transformation and still carry out the daily business of serv-
ing its customers. from managing network operations to providing whole-
network design, build and migration services, alcatel-lucent is a trusted
ViVEk MOHAN partner that relieves the transformation burden so companies can compete
president services and thrive as they evolve.
48
2010 AnnuAl report
CuSTOMER
STORiES
vivacom
change is good—with the right partner
“our decision to enter a strategic partnership with
alcatel-lucent is designed to guarantee our fixed
and mobile subscribers a network of constantly
increasing quality over the long term,” said
bernard moscheni, ceo of vivacom. “alcatel-lucent
is the most appropriately equipped to meet our
network operations requirements with greater
speed, flexibility and cost synergies than we could
alone. and with this step, we’re once again playing
a pioneering role in the bulgarian market.”
taking green to the desert
Diesel generators are usually the fallback for
powering communications equipment in areas
not served by reliable electrical grids. To avoid
the costs and environmental harm that come from
burning fuel, the Alcatel-Lucent Alternative
Energy Program is helping companies set up
wireless networks that run on solar, wind and
other alternative energy sources. By the end of
2010, Alcatel-Lucent had installed more than
500 alternative energy-powered base stations
suited to all weather conditions and physical
environments—including deployments in Africa,
the Middle East and india.
vodafone Qatar
a faster path to market
vodafone Qatar is part of the world's leading
international mobile communications group,
the vodafone Group. to realize its forward-looking
vision “to be the most admired brand in Qatar,”
the company turned to alcatel-lucent for a fully
outsourced, end-to-end managed services solution
for a brand new 2G/3G mobile network.
this turnkey solution enables vodafone to
quickly and efficiently take advantage of
an important opportunity to enter the mobile
market with competitive next-generation services.
alcatel-lucent
was the perfect fit,
the perfect price,
the strategy book
with the experience
we needed: a company
vodafone trusted and
valued.
BASSAM AL-iBRAHiM,
technoloGY vendor manaGer,
vodafone Qatar
49
2010 AnnuAl report
 the business book
OPERATiONS

response and responsibility

acting quickly to address supply chain pressures in 2010,
alcatel-lucent established systems to ensure
its ongoing ability to meet customer requirements.

1600
After a year of challenge Flatter, tighter operations
We make significant purchases of electronic components and other materials from
many sources. in 2010, we experienced shortages of components and commodities
1400
alcatel-lucent’s new principal operating model—
the foundations of which were built in 2010—will
commonly used across the industry that led to increases in our production lead times improve the company’s operational efficiency by
and a deterioration of our delivery capability.
1200
simplifying and harmonizing the interactions
between its various legal units. the number of legal
as early as the beginning of 2010, we undertook measures to mitigate the impact
1000
entities responsible for sourcing products will drop
of these shortages, which allowed us to gradually improve our production capa- from eight to three, with alcatel-lucent interna-
bilities throughout the year. in addition, an easing of supply conditions occurred 800
tional (established in 2010) serving emea, latin
during the last quarter of 2010, but supply conditions were not yet at normal levels america and asia-pacific, alcatel-lucent usa serv-
by the end of 2010. 600
ing north america, and asb serving china. What
used to require 25 separate cost accounting sys-
400
tems will now involve just one. not only does this
make the company’s operations more streamlined
alcatel-lucent's three-phase plan to reduce 200
and economical; it also stands to improve customer
its carbon footprint by 50% by 2020 (in millions of tons of co2) satisfaction by making alcatel-lucent easier to do
0
business with.
1.6
1.4 Real estate modernization
alcatel-lucent’s transformation continues to
1.2 24% include a focus on real estate—specifically, improv-
1.0 ing occupancy conditions at facilities around the
42% world, reducing operating expenses and shrinking
0.8
the organization’s carbon footprint. in 2010, these Walking the talk
0.6 50% efforts led to a reduction in the number of proper- Alcatel-Lucent isn’t just helping communications
0.4 ties, the disposal of a large area of space and the companies reduce their environmental impact—
generation of significant operational savings. in the it’s taking a cut at its own as well. The target:
0.2 process, alcatel-lucent beat its own carbon foot- to reduce its own carbon footprint by 50 percent
0 print targets, cutting 10 percent of its greenhouse from its 2008 level by 2020. Addressing
2008 2012 2016 2020 gas emissions a full year ahead of schedule. everything from facility operations and logistics
to iT and business travel—and involving its entire
Next steps

the strategy book

1 2 3 workforce—Alcatel-Lucent trimmed its total
Going forward, the company will continue to build emissions by nearly 12.6 percent last year,
get our house ask more use renewables strong relationships with suppliers, taking advan- a calculation that included a greater range of
in order from suppliers for the rest tage of the intellectual and technological benefits
improve onsite energy improve onsite energy use renewable energy indirect emissions than ever before for a more
they have the potential to bring. the operations accurate measure of impact. in the end, more
efficiency efficiency use renewable energy
group specifically will contribute to the company’s than 176,000 tons of carbon dioxide emissions
reduce the use of reduce the use of credits
air shipments air shipments profit and loss and balance sheets by simplifying were eliminated—the equivalent of taking nearly
consolidate facilities consolidate facilities the delivery of products to customers and reducing 32,000 cars off the road.
consolidate it servers encourage inventory in ways that allow improvements to flow
reduce business travel partner involvement more quickly to the bottom line.

50 51
2010 AnnuAl report 2010 AnnuAl report
 the business book
OPERATiONS

response and responsibility

acting quickly to address supply chain pressures in 2010,
alcatel-lucent established systems to ensure
its ongoing ability to meet customer requirements.

1600
After a year of challenge Flatter, tighter operations
We make significant purchases of electronic components and other materials from
many sources. in 2010, we experienced shortages of components and commodities
1400
alcatel-lucent’s new principal operating model—
the foundations of which were built in 2010—will
commonly used across the industry that led to increases in our production lead times improve the company’s operational efficiency by
and a deterioration of our delivery capability.
1200
simplifying and harmonizing the interactions
between its various legal units. the number of legal
as early as the beginning of 2010, we undertook measures to mitigate the impact
1000
entities responsible for sourcing products will drop
of these shortages, which allowed us to gradually improve our production capa- from eight to three, with alcatel-lucent interna-
bilities throughout the year. in addition, an easing of supply conditions occurred 800
tional (established in 2010) serving emea, latin
during the last quarter of 2010, but supply conditions were not yet at normal levels america and asia-pacific, alcatel-lucent usa serv-
by the end of 2010. 600
ing north america, and asb serving china. What
used to require 25 separate cost accounting sys-
400
tems will now involve just one. not only does this
make the company’s operations more streamlined
alcatel-lucent's three-phase plan to reduce 200
and economical; it also stands to improve customer
its carbon footprint by 50% by 2020 (in millions of tons of co2) satisfaction by making alcatel-lucent easier to do
0
business with.
1.6
1.4 Real estate modernization
alcatel-lucent’s transformation continues to
1.2 24% include a focus on real estate—specifically, improv-
1.0 ing occupancy conditions at facilities around the
42% world, reducing operating expenses and shrinking
0.8
the organization’s carbon footprint. in 2010, these Walking the talk
0.6 50% efforts led to a reduction in the number of proper- Alcatel-Lucent isn’t just helping communications
0.4 ties, the disposal of a large area of space and the companies reduce their environmental impact—
generation of significant operational savings. in the it’s taking a cut at its own as well. The target:
0.2 process, alcatel-lucent beat its own carbon foot- to reduce its own carbon footprint by 50 percent
0 print targets, cutting 10 percent of its greenhouse from its 2008 level by 2020. Addressing
2008 2012 2016 2020 gas emissions a full year ahead of schedule. everything from facility operations and logistics
to iT and business travel—and involving its entire
Next steps

the strategy book

1 2 3 workforce—Alcatel-Lucent trimmed its total
Going forward, the company will continue to build emissions by nearly 12.6 percent last year,
get our house ask more use renewables strong relationships with suppliers, taking advan- a calculation that included a greater range of
in order from suppliers for the rest tage of the intellectual and technological benefits
improve onsite energy improve onsite energy use renewable energy indirect emissions than ever before for a more
they have the potential to bring. the operations accurate measure of impact. in the end, more
efficiency efficiency use renewable energy
group specifically will contribute to the company’s than 176,000 tons of carbon dioxide emissions
reduce the use of reduce the use of credits
air shipments air shipments profit and loss and balance sheets by simplifying were eliminated—the equivalent of taking nearly
consolidate facilities consolidate facilities the delivery of products to customers and reducing 32,000 cars off the road.
consolidate it servers encourage inventory in ways that allow improvements to flow
reduce business travel partner involvement more quickly to the bottom line.

50 51
2010 AnnuAl report 2010 AnnuAl report
ideas in
the making

the strategy book

ideas in
the making

the strategy book

the strategy book

NETWoRKs

a netWork that DeLivers:

the high Leverage netWork™ Where ‘keePing UP’ gets LeFt behinD
The one predictable thing about technology is that it never stops
evolving. New devices catch people’s imaginations, new applications
take root at the center of their lives. It’s not enough for communications
companies to keep up: they have to anticipate and adapt—faster
than ever before. The Alcatel-Lucent High Leverage Network™
INTERvIEW
WITH… helps them do so by evolving their networks and transforming
their operations, enabling new applications and delivering
universal access to the content and connectivity people demand.
What was the big story in Networks last year?
For us without a doubt it was HLN, the High Leverage
Network™. This is our answer to the challenges our cus-
tomers are facing right now—in wireline, wireless, IP and
optics—due to the ongoing explosion of data from mobile
Internet, video and social networking. HLN offers a path-
way for network evolution toward an integrated, all-IP
network that expands easily, runs cost effectively and is
intelligent. Everything we do is aligned with this HLN
vision and, in 2010, 60 percent of our R&D investment
was devoted to it.

What are your key priority areas?

We’re investing in the evolution of mobile networks—a
move that paid off when we delivered Verizon’s 4G net-
work. At the same time, we’re doing everything we can
to help our customers deliver the next wave of high-
speed broadband, whether it’s using ‘Phantom Mode’ to
hLn is resonating boost the capacity of traditional copper networks or new
strongly with fiber installations. We’re investing in transport—the long-
distance transmission of voice, video and data—and are
our customers and combining our capabilities in IP and optics to achieve
the broader market, transport speeds of 100 Gigabits per second. And light-
Radio™ is making mobile networks more flexible and
across multiple efficient, with more capacity to meet demand.
technologies and How are these strategies paying off?
geographies. HLN contributed to Alcatel-Lucent’s growth in 2010. It’s
resonating strongly with our customers and the broader Enabling a low-carbon economy
PHILIPPE KERYER, market, across multiple technologies and geographies. The information and communications technology (ICT) sector is in a unique position when it comes to
PRESIDENT NETWORKS We’re gaining traction among customers in key technol- the environment. Beyond reducing its own impact, the solutions it provides can help other industries
ogy areas, and are displacing competitors in others. Mov- cut theirs as well—by minimizing travel and commuting, enabling virtual meetings, improving the quality of
ing forward, we are going to see even greater need for electric power services and more. In all, ICT has the potential to reduce global greenhouse gas emissions
network capacity due to the data explosion, and our by 15 percent by 2020. As governments and industry strive for sustainable growth, innovative ICT solutions
Watch the video interview at: strategy for 2011 is to accelerate our ability to deliver will contribute to energy-efficient ways of living and working—laying the foundation for what’s being called
www.alcatel-lucent.com/keryer practical, innovative solutions to our customers. ‘the low-carbon economy.’

54 55
2010 AnnuAl report 2010 AnnuAl report
the strategy book

NETWoRKs

a netWork that DeLivers:

the high Leverage netWork™ Where ‘keePing UP’ gets LeFt behinD
The one predictable thing about technology is that it never stops
evolving. New devices catch people’s imaginations, new applications
take root at the center of their lives. It’s not enough for communications
companies to keep up: they have to anticipate and adapt—faster
than ever before. The Alcatel-Lucent High Leverage Network™
INTERvIEW
WITH… helps them do so by evolving their networks and transforming
their operations, enabling new applications and delivering
universal access to the content and connectivity people demand.
What was the big story in Networks last year?
For us without a doubt it was HLN, the High Leverage
Network™. This is our answer to the challenges our cus-
tomers are facing right now—in wireline, wireless, IP and
optics—due to the ongoing explosion of data from mobile
Internet, video and social networking. HLN offers a path-
way for network evolution toward an integrated, all-IP
network that expands easily, runs cost effectively and is
intelligent. Everything we do is aligned with this HLN
vision and, in 2010, 60 percent of our R&D investment
was devoted to it.

What are your key priority areas?

We’re investing in the evolution of mobile networks—a
move that paid off when we delivered Verizon’s 4G net-
work. At the same time, we’re doing everything we can
to help our customers deliver the next wave of high-
speed broadband, whether it’s using ‘Phantom Mode’ to
hLn is resonating boost the capacity of traditional copper networks or new
strongly with fiber installations. We’re investing in transport—the long-
distance transmission of voice, video and data—and are
our customers and combining our capabilities in IP and optics to achieve
the broader market, transport speeds of 100 Gigabits per second. And light-
Radio™ is making mobile networks more flexible and
across multiple efficient, with more capacity to meet demand.
technologies and How are these strategies paying off?
geographies. HLN contributed to Alcatel-Lucent’s growth in 2010. It’s
resonating strongly with our customers and the broader Enabling a low-carbon economy
PHILIPPE KERYER, market, across multiple technologies and geographies. The information and communications technology (ICT) sector is in a unique position when it comes to
PRESIDENT NETWORKS We’re gaining traction among customers in key technol- the environment. Beyond reducing its own impact, the solutions it provides can help other industries
ogy areas, and are displacing competitors in others. Mov- cut theirs as well—by minimizing travel and commuting, enabling virtual meetings, improving the quality of
ing forward, we are going to see even greater need for electric power services and more. In all, ICT has the potential to reduce global greenhouse gas emissions
network capacity due to the data explosion, and our by 15 percent by 2020. As governments and industry strive for sustainable growth, innovative ICT solutions
Watch the video interview at: strategy for 2011 is to accelerate our ability to deliver will contribute to energy-efficient ways of living and working—laying the foundation for what’s being called
www.alcatel-lucent.com/keryer practical, innovative solutions to our customers. ‘the low-carbon economy.’

54 55
2010 AnnuAl report 2010 AnnuAl report
the strategy book

NETWoRKs

UniversaL access

It’s not just a ‘nice to have.’ Anywhere, anytime, network
access is a social necessity and an economic imperative.
With the World Bank showing that a 10 percent increase in
high-speed (broadband) availability raises a country’s
gross domestic product by 1.2 percent, governments
worldwide now consider high-speed (broadband)
connectivity part of their critical national infrastructure.
WireLess
NEW TECHNoLoGIEs LTE
the long term starts now
Mobile customers will soon be able to access the Internet
four times faster than they can today thanks to fourth-
generation wireless technology (LTE, or long-term evolu-
tion). Alcatel-Lucent’s early leadership in the LTE/4G
market comes from the power of its High Leverage Net-
work™ approach and the fact that it’s the only vendor
with deep experience and strong offerings in both mobile
radio and IP routing, two LTE-essential technologies. In
addition to major LTE wins in the U.S. in 2010, the com-
pany also demonstrated record LTE speeds with China
Mobile Communications at Shanghai World Expo in 2010
and won the 4G deployment in Shanghai for China
Mobile. And Alcatel-Lucent is building the Middle East’s
first LTE network for Etisalat in the United Arab Emirates.

CUsToMER
WIN

WireLine VERIzON WIRELESS:

NEW TECHNoLoGIEs 10GPON
satisfying the need for speed
While wireless communication has taken off, most resi-
dential and business customers still get their high-speed
services and applications (super-fast Internet, video on
demand, high-definition TV (HDTV) and web-based cloud
computing, to name a few) through fixed-line connectiv-
ity, even when they have WiFi on their premises. Alcatel-
Lucent is helping communications companies deliver
through innovations such as vectoring—a way of more
than doubling the capacity of existing copper lines—and
10GPON (Gigabit passive optical networking), which ups
the capacity of fiber optic networks by as much as
10 times.
CUsToMER
WIN
TDC: reaching high
sPeeD in recorD time
Alcatel-Lucent’s Intelligent services Access
Manager (IsAM) allows telcos like Denmark’s
TDC to deliver a whole variety of faster, more
reliable services through one sophisticated
system, cutting operating costs while
guaranteeing the highest quality of service.
More importantly, the IsAM technology will
allow Denmark to meet the targets of the
European Commission’s Digital Agenda—which
aims to provide every European with high-
speed service—years ahead of schedule.
bUiLDing
the netWork
oF ‘beyonD’
A major network infrastructure partner to
verizon Wireless, Alcatel-Lucent is helping
the company grow and improve
the performance of its current mobile
network while at the same time building
the foundation for its next-generation
(4G LTE) network. In a four-year contract
expected to be worth Us$4 billion to make
sure verizon will continue to satisfy its
customers with advanced, high-quality
wireless services, Alcatel-Lucent is
providing a wide range of technologies—
IP, fiber optics and microwave—along with
best-in-the-business professional
integration services.

56 57
2010 AnnuAl report 2010 AnnuAl report
the strategy book

NETWoRKs

UniversaL access

It’s not just a ‘nice to have.’ Anywhere, anytime, network
access is a social necessity and an economic imperative.
With the World Bank showing that a 10 percent increase in
high-speed (broadband) availability raises a country’s
gross domestic product by 1.2 percent, governments
worldwide now consider high-speed (broadband)
connectivity part of their critical national infrastructure.
WireLess
NEW TECHNoLoGIEs LTE
the long term starts now
Mobile customers will soon be able to access the Internet
four times faster than they can today thanks to fourth-
generation wireless technology (LTE, or long-term evolu-
tion). Alcatel-Lucent’s early leadership in the LTE/4G
market comes from the power of its High Leverage Net-
work™ approach and the fact that it’s the only vendor
with deep experience and strong offerings in both mobile
radio and IP routing, two LTE-essential technologies. In
addition to major LTE wins in the U.S. in 2010, the com-
pany also demonstrated record LTE speeds with China
Mobile Communications at Shanghai World Expo in 2010
and won the 4G deployment in Shanghai for China
Mobile. And Alcatel-Lucent is building the Middle East’s
first LTE network for Etisalat in the United Arab Emirates.

CUsToMER
WIN

WireLine VERIzON WIRELESS:

NEW TECHNoLoGIEs 10GPON
satisfying the need for speed
While wireless communication has taken off, most resi-
dential and business customers still get their high-speed
services and applications (super-fast Internet, video on
demand, high-definition TV (HDTV) and web-based cloud
computing, to name a few) through fixed-line connectiv-
ity, even when they have WiFi on their premises. Alcatel-
Lucent is helping communications companies deliver
through innovations such as vectoring—a way of more
than doubling the capacity of existing copper lines—and
10GPON (Gigabit passive optical networking), which ups
the capacity of fiber optic networks by as much as
10 times.
CUsToMER
WIN
TDC: reaching high
sPeeD in recorD time
Alcatel-Lucent’s Intelligent services Access
Manager (IsAM) allows telcos like Denmark’s
TDC to deliver a whole variety of faster, more
reliable services through one sophisticated
system, cutting operating costs while
guaranteeing the highest quality of service.
More importantly, the IsAM technology will
allow Denmark to meet the targets of the
European Commission’s Digital Agenda—which
aims to provide every European with high-
speed service—years ahead of schedule.
bUiLDing
the netWork
oF ‘beyonD’
A major network infrastructure partner to
verizon Wireless, Alcatel-Lucent is helping
the company grow and improve
the performance of its current mobile
network while at the same time building
the foundation for its next-generation
(4G LTE) network. In a four-year contract
expected to be worth Us$4 billion to make
sure verizon will continue to satisfy its
customers with advanced, high-quality
wireless services, Alcatel-Lucent is
providing a wide range of technologies—
IP, fiber optics and microwave—along with
best-in-the-business professional
integration services.

56 57
2010 AnnuAl report 2010 AnnuAl report
the strategy book
NETWoRKs
netWork evoLUtion
By combining IP (Internet Protocol) and optics, the Alcatel-
Lucent High Leverage Network™ keeps down the cost of
delivering video and multimedia services while providing
the intelligence to create and deliver new high-quality
offerings—whether video-on-the-move or high-definition
movie watching at home.
breaking
the sPeeD barrier:
iP anD oPtics
For 100g
NEW TECHNoLoGIEs 100G
Alcatel-Lucent stood out in 2010 as the only company in
the world to deliver 100 Gigabit Ethernet (100G) tech-
nologies, extending highest-speed capabilities to both
the IP and optical parts of the network. It was a break-
through built on more than a decade’s worth of research
and development—and included the creation of custom
silicon, the substance at the heart of today’s powerful
computer circuits. Having its own self-made components
for key technology purposes continues to give Alcatel-
Lucent a distinct competitive advantage.
58
2010 AnnuAl report
CDN: PUTTING
THE RIGHT CONTENT
CLOSE TO
THE CONSUMER
one of the most demanding challenges for
networks is—and will continue to be—the
profitable delivery of video and multimedia
content. CDn (Content Delivery network)
solutions help by putting popular, video-rich
content in the right place for the right
subscriber at the right time. Devices such as
high-definition televisions and tablets pull
CUsToMER
down this video from sources close by instead
of having to reach all the way across the WIN
network, a faster and more stable option that
helps conserve overall network resources.
this is precisely what Alcatel-lucent’s Velocix
CDn solution does, improving the delivery of
T-SySTEMS:
popular media services and meeting demand research at
for multi-screen video entertainment in a
the sPeeD oF Light
profitable way.
Working with Deutsche Telekom’s corporate
customer arm, T-systems, Alcatel-Lucent
has achieved another industry first:
the deployment of ultra-fast commercially
available 100 Gigabit-per-second (100G)
connectivity that combines IP and optical
how does 100g work?
It creates what are called coherent optical links—basi-
technologies on a single wavelength of light.
Linking high-performance data centers
cally, efficient ways of transporting large volumes of
at Germany’s Dresden and Bergakademie
information at high speeds across the network. With
Freiberg technical universities,
100G in both IP and optics, the two can intersect when-
Alcatel-Lucent and T-systems showcased
ever needed to flow voice, data and media as efficiently
the solution’s performance and
and rapidly as possible. It’s like creating expressways for
high capacity for growth. 100G technology
information.
will greatly strengthen cooperation
between the research facilities and
100G is an important step in the evolution of the net-
enable network and data center operators
work. With it, communications companies can profitably
to offer more advanced cloud services and
meet the demands of exponential growth of all kinds of
collaborative multimedia applications—
content. Many have already performed live trials of
and in this way work to improve the lives of
Alcatel-Lucent’s 100G technology and are well on their
people everywhere.
way toward making it part of their networks.
59
2010 AnnuAl report
the strategy book
NETWoRKs
netWork evoLUtion
By combining IP (Internet Protocol) and optics, the Alcatel-
Lucent High Leverage Network™ keeps down the cost of
delivering video and multimedia services while providing
the intelligence to create and deliver new high-quality
offerings—whether video-on-the-move or high-definition
movie watching at home.
breaking
the sPeeD barrier:
iP anD oPtics
For 100g
NEW TECHNoLoGIEs 100G
Alcatel-Lucent stood out in 2010 as the only company in
the world to deliver 100 Gigabit Ethernet (100G) tech-
nologies, extending highest-speed capabilities to both
the IP and optical parts of the network. It was a break-
through built on more than a decade’s worth of research
and development—and included the creation of custom
silicon, the substance at the heart of today’s powerful
computer circuits. Having its own self-made components
for key technology purposes continues to give Alcatel-
Lucent a distinct competitive advantage.
58
2010 AnnuAl report
CDN: PUTTING
THE RIGHT CONTENT
CLOSE TO
THE CONSUMER
one of the most demanding challenges for
networks is—and will continue to be—the
profitable delivery of video and multimedia
content. CDn (Content Delivery network)
solutions help by putting popular, video-rich
content in the right place for the right
subscriber at the right time. Devices such as
high-definition televisions and tablets pull
CUsToMER
down this video from sources close by instead
of having to reach all the way across the WIN
network, a faster and more stable option that
helps conserve overall network resources.
this is precisely what Alcatel-lucent’s Velocix
CDn solution does, improving the delivery of
T-SySTEMS:
popular media services and meeting demand research at
for multi-screen video entertainment in a
the sPeeD oF Light
profitable way.
Working with Deutsche Telekom’s corporate
customer arm, T-systems, Alcatel-Lucent
has achieved another industry first:
the deployment of ultra-fast commercially
available 100 Gigabit-per-second (100G)
connectivity that combines IP and optical
how does 100g work?
It creates what are called coherent optical links—basi-
technologies on a single wavelength of light.
Linking high-performance data centers
cally, efficient ways of transporting large volumes of
at Germany’s Dresden and Bergakademie
information at high speeds across the network. With
Freiberg technical universities,
100G in both IP and optics, the two can intersect when-
Alcatel-Lucent and T-systems showcased
ever needed to flow voice, data and media as efficiently
the solution’s performance and
and rapidly as possible. It’s like creating expressways for
high capacity for growth. 100G technology
information.
will greatly strengthen cooperation
between the research facilities and
100G is an important step in the evolution of the net-
enable network and data center operators
work. With it, communications companies can profitably
to offer more advanced cloud services and
meet the demands of exponential growth of all kinds of
collaborative multimedia applications—
content. Many have already performed live trials of
and in this way work to improve the lives of
Alcatel-Lucent’s 100G technology and are well on their
people everywhere.
way toward making it part of their networks.
59
2010 AnnuAl report
the strategy book
APPLICATIoNs AND soLUTIoNs
aPPLication enabLement
Application Enablement turns yesterday’s sealed-up
network into a hotbed of creativity where telcos and
their partners churn out new applications, generate
new revenue and keep consumers coming back for more.
content is king
Today’s networks support specialized applications that con-
nect people to all kinds of content: movies and videos, music
and podcasts, newspapers, magazines, online gaming, social
networks and information of every variety—from travel
schedules to bœuf bourguignon recipes. And this is just the
beginning.
everyone’s a developer
With Application Enablement, developers are using the fea-
tures and capabilities of the network to create compelling
KENNETH FRANK new applications that make consumers’ lives simpler, more
PRESIDENT SOLUTIONS productive and more fun. For telcos, this translates into
higher revenues and a revamped role—one that goes beyond
simply delivering content to being an essential part of peo-
ple’s connected experience, with quality and convenience
people are willing to pay for.
open for business
In 2010, Alcatel-Lucent acquired the company
ProgrammableWeb—one of the most important libraries of
application programming interfaces (APIs) for creating
applications—along with OpenPlug™, a company offering
tools to simplify the development of apps for mobile
phones, tablets and other devices. Combined with Alcatel-
Lucent Open API Platform™, these give network companies
PAUL sEGRE access to endless innovation through a large and growing
PRESIDENT APPLICATIONS pool of developers.
60
2010 AnnuAl report
CUsToMER
WINs
TELEFóNICA DE ARGENTINA:
haPPier cUstomers,
FeWer caLLs
NEW TECHNoLoGIEs OPTISM™ offering technical support services that respond to
the direct connection to consumers customer needs while staying cost effective is
Launched in 2010, Optism is an award-winning market- a challenge faced by all telcos. Looking to make
ing solution that allows network companies to bridge the its installation and set-up easier for customers,
gap between mobile consumers and advertisers. It deliv- Telefónica de Argentina selected Alcatel-Lucent’s
ers highly targeted ads based on people’s specific prefer- Motive suite of self-help tools to assist with
ences and permissions. Alcatel-Lucent is working with the activation of new high-speed services. The result?
operators like Etisalat in the United Arab Emirates and A simplified customer experience that has reduced
Mobinil in Egypt to launch Optism services. As people incoming technical support calls by 60 percent and
only receive ads relevant to their interests, advertisers field maintenance by 18 percent.
are expected to be able to see significant increase in
response rates.
TELUS:
get yoUr DigitaL
entertainment here
When Canadian operator TELUs sought the best
entertainment services solution for its network,
it chose Alcatel-Lucent’s Digital Media store (DMs).
By integrating TELUs’ mobile applications, gaming, and
ringtones within a single media ‘store’, DMs enables
the rapid, timely launch of entertainment services
with a consistently better experience—whether
consumers connect through the mobile network or
over the Internet.
NEW TECHNoLoGIEs MOTIVE
a more motivating experience
What do people do when an app doesn’t load properly
on their smartphone or tablet? Many call the mobile
company that sold them their device. But it isn’t always
easy to identify the problem. Is it user error, a faulty
device, or a buggy app? Alcatel-Lucent is helping bring
clarity to these kinds of situations thanks to its 2008
acquisition of Motive, an industry leader in diagnostic
and remote-management software for devices of all
kinds, from smartphones to TV set-top boxes. With
Motive installed, the service provider is able to trouble-
shoot the problem and get customers up and running
faster.
61
2010 AnnuAl report
the strategy book
APPLICATIoNs AND soLUTIoNs
aPPLication enabLement
Application Enablement turns yesterday’s sealed-up
network into a hotbed of creativity where telcos and
their partners churn out new applications, generate
new revenue and keep consumers coming back for more.
content is king
Today’s networks support specialized applications that con-
nect people to all kinds of content: movies and videos, music
and podcasts, newspapers, magazines, online gaming, social
networks and information of every variety—from travel
schedules to bœuf bourguignon recipes. And this is just the
beginning.
everyone’s a developer
With Application Enablement, developers are using the fea-
tures and capabilities of the network to create compelling
KENNETH FRANK new applications that make consumers’ lives simpler, more
PRESIDENT SOLUTIONS productive and more fun. For telcos, this translates into
higher revenues and a revamped role—one that goes beyond
simply delivering content to being an essential part of peo-
ple’s connected experience, with quality and convenience
people are willing to pay for.
open for business
In 2010, Alcatel-Lucent acquired the company
ProgrammableWeb—one of the most important libraries of
application programming interfaces (APIs) for creating
applications—along with OpenPlug™, a company offering
tools to simplify the development of apps for mobile
phones, tablets and other devices. Combined with Alcatel-
Lucent Open API Platform™, these give network companies
PAUL sEGRE access to endless innovation through a large and growing
PRESIDENT APPLICATIONS pool of developers.
60
2010 AnnuAl report
CUsToMER
WINs
TELEFóNICA DE ARGENTINA:
haPPier cUstomers,
FeWer caLLs
NEW TECHNoLoGIEs OPTISM™ offering technical support services that respond to
the direct connection to consumers customer needs while staying cost effective is
Launched in 2010, Optism is an award-winning market- a challenge faced by all telcos. Looking to make
ing solution that allows network companies to bridge the its installation and set-up easier for customers,
gap between mobile consumers and advertisers. It deliv- Telefónica de Argentina selected Alcatel-Lucent’s
ers highly targeted ads based on people’s specific prefer- Motive suite of self-help tools to assist with
ences and permissions. Alcatel-Lucent is working with the activation of new high-speed services. The result?
operators like Etisalat in the United Arab Emirates and A simplified customer experience that has reduced
Mobinil in Egypt to launch Optism services. As people incoming technical support calls by 60 percent and
only receive ads relevant to their interests, advertisers field maintenance by 18 percent.
are expected to be able to see significant increase in
response rates.
TELUS:
get yoUr DigitaL
entertainment here
When Canadian operator TELUs sought the best
entertainment services solution for its network,
it chose Alcatel-Lucent’s Digital Media store (DMs).
By integrating TELUs’ mobile applications, gaming, and
ringtones within a single media ‘store’, DMs enables
the rapid, timely launch of entertainment services
with a consistently better experience—whether
consumers connect through the mobile network or
over the Internet.
NEW TECHNoLoGIEs MOTIVE
a more motivating experience
What do people do when an app doesn’t load properly
on their smartphone or tablet? Many call the mobile
company that sold them their device. But it isn’t always
easy to identify the problem. Is it user error, a faulty
device, or a buggy app? Alcatel-Lucent is helping bring
clarity to these kinds of situations thanks to its 2008
acquisition of Motive, an industry leader in diagnostic
and remote-management software for devices of all
kinds, from smartphones to TV set-top boxes. With
Motive installed, the service provider is able to trouble-
shoot the problem and get customers up and running
faster.
61
2010 AnnuAl report
the strategy book

INNovATIoN

research at sPeeD from

connecting
The real measure of innovation the WorLD
is its impact on people’s lives. with
Bell Labs invents technologies Telstar was able to receive a signal,
and revolutionizes solutions amplify it, and then transmit it
CCD technology transforms back to another location on Earth.
patterns of light into 2011 lightRadio™
that change the ways This technology allowed telephone
people live and work and play. aDvancing useful digital information
and serves as the basis
1994 TrueWave® Optical Fiber calls to be transmitted from coast
in to coast and around the world.
sUstainabiLity for modern imaging.
It is widely used in
1988 Undersea fiber-optic cable
digital cameras, 1962 Telstar – first interactive communication satellite
video recorders, bar code
readers, and image scanners, 1958 Laser
to name just a few.
at
2010 GreenTouch™ 1947 Cellular concept
Radar is
a detection system 1997 Nano transistors 1924 Fax machine Soft Router provides a means of
capable of 1876 First telephone
separating control processing from
packet-forwarding functions,
managing
determining the range, 1969 Charge-coupled device (CCD)
altitude, direction or which results in increased inFormation
speed of both
1954 Solar cell reliability, scalability and security,
moving and reduces costs and makes adding
1939 Radar new functionality easier.
UnDerstanDing fixed objects.
1923 Hearing aid 2010 Immersive Communication
the Universe 2006 Soft router
1983 C++ Language
2005 High-speed electronics
1973 C Language
1985 Atom trapping
1969 Unix
1964 Radio support for the Big Bang
1937 Electrical digital computer
1947 Transistor
1933 Radio astronomy
1914 Vacuum tube Unix is a multi-user computer
operating system that
enabled large-scale networking of
Developed as a replacement for
diverse computing systems and
vacuum tubes and mechanical relays,
has played a decisive role in
the Transistor is the fundamental
the evolution of the Internet.
building block of modern electronic devices
(computers, radios, calculators) and
is arguably one of the greatest
inventions of the 20th century.
= nobel prize

Other Nobel Prize-winning inventions:

Fractional Quantum Hall Effect,
Wave Nature of Matter, Theory of Imperfect Crystals.

62 63
2010 AnnuAl report 2010 AnnuAl report
the strategy book

INNovATIoN

research at sPeeD from

connecting
The real measure of innovation the WorLD
is its impact on people’s lives. with
Bell Labs invents technologies Telstar was able to receive a signal,
and revolutionizes solutions amplify it, and then transmit it
CCD technology transforms back to another location on Earth.
patterns of light into 2011 lightRadio™
that change the ways This technology allowed telephone
people live and work and play. aDvancing useful digital information
and serves as the basis
1994 TrueWave® Optical Fiber calls to be transmitted from coast
in to coast and around the world.
sUstainabiLity for modern imaging.
It is widely used in
1988 Undersea fiber-optic cable
digital cameras, 1962 Telstar – first interactive communication satellite
video recorders, bar code
readers, and image scanners, 1958 Laser
to name just a few.
at
2010 GreenTouch™ 1947 Cellular concept
Radar is
a detection system 1997 Nano transistors 1924 Fax machine Soft Router provides a means of
capable of 1876 First telephone
separating control processing from
packet-forwarding functions,
managing
determining the range, 1969 Charge-coupled device (CCD)
altitude, direction or which results in increased inFormation
speed of both
1954 Solar cell reliability, scalability and security,
moving and reduces costs and makes adding
1939 Radar new functionality easier.
UnDerstanDing fixed objects.
1923 Hearing aid 2010 Immersive Communication
the Universe 2006 Soft router
1983 C++ Language
2005 High-speed electronics
1973 C Language
1985 Atom trapping
1969 Unix
1964 Radio support for the Big Bang
1937 Electrical digital computer
1947 Transistor
1933 Radio astronomy
1914 Vacuum tube Unix is a multi-user computer
operating system that
enabled large-scale networking of
Developed as a replacement for
diverse computing systems and
vacuum tubes and mechanical relays,
has played a decisive role in
the Transistor is the fundamental
the evolution of the Internet.
building block of modern electronic devices
(computers, radios, calculators) and
is arguably one of the greatest
inventions of the 20th century.
= nobel prize

Other Nobel Prize-winning inventions:

Fractional Quantum Hall Effect,
Wave Nature of Matter, Theory of Imperfect Crystals.

62 63
2010 AnnuAl report 2010 AnnuAl report
 from
the strategy book
INNovATIoN
with
the innovation
acceLerator in
With a relentless commitment to innovation, scientists and
researchers at Bell Labs take on the most complex technology
challenges—and aim to reset the boundaries
at of the possible.
imagine: a critical undersea communications cable lies
damaged beneath the surface of the english channel. to
fix it, the repair crew must pinpoint the exact location
of the problem. even though the monitored signal is
extremely faint, the crew can guide their vessel straight
to the right spot, thanks to bell Labs’ optical time
Domain reflector technology. it’s just one example of
how bell Labs is solving global communications chal-
lenges.
at bell Labs, ‘revolutionary’ is everyday.
Continuously innovating technologies that allow people
to connect, share and do, bell labs is at the frontier of
advances that re-imagine the way we communicate.
thirteen of its scientists have been awarded nobel priz-
es. Customers rely on bell labs for insight into the ever-
changing world of communications and guidance on the
best way forward. And the entire Alcatel-lucent team
looks to bell labs for leadership in defining energy-
efficient communications networks with revolutionary
capabilities.
this is where breakthroughs are born:
At eight bell labs research centers around the world—in
the u.S., France, belgium, Germany, ireland, india, China
and South Korea; as a result of partnerships and collabo-
ration with more than 200 other leading laboratories,
academic institutions and customer organizations. All
focused on bringing the best possible thinking to the
problems of the day, and fresh perspectives on the pos-
sibilities for tomorrow.
64
2010 AnnuAl report
breakthroUgh
INNOVATIONS
information at blistering speeds: optics at 100g
The rapid increase in video communications and the addition
of millions of new subscribers are driving demand for
higher-speed networks. Working together in anticipation of
these trends, Bell Labs scientists and technical experts
throughout Alcatel-Lucent developed novel optical
r&D at aLcateL-LUcent technologies that made the company first to market with a
single carrier 100 Gigabit-per-second optical transmission
Participation in system. This solution will provide customers with the
100 high-speed capacity they need well into the future.
standards bodies turning copper into gold: Phantom mode
The capacity and performance requirements of new video and
data services are pushing existing copper access networks to
27,900 their limits. In some cases, it’s not an affordable option to
replace that copper with faster fiber. For network companies
Active patents in that boat, Bell Labs has developed a unique solution called
(2,400 obtained in 2010) Phantom Mode that ups copper-wire capacity by as much as
50 percent, enabling speeds of 300 Megabits per second.
immersive COMMUNICATION
Ever since the introduction of the first videoconferencing
system, the promise of remote medical diagnostics or
“as good as being there” video meetings has seemed within reach.
But this promise has not yet been fully realized.
A Bell Labs research initiative called Immersive Communication
promises to change that by generating innovations that will allow
people to work together in real time no matter where they are.
Employing sensors, video processing, novel user interfaces,
high-speed networking technology—and accessible from almost
any device—it creates virtual environments in which people
separated by distance can almost literally gather for discussions,
information sharing and collaborative work.
65
2010 AnnuAl report
 from
the strategy book
INNovATIoN
with
the innovation
acceLerator in
With a relentless commitment to innovation, scientists and
researchers at Bell Labs take on the most complex technology
challenges—and aim to reset the boundaries
at of the possible.
imagine: a critical undersea communications cable lies
damaged beneath the surface of the english channel. to
fix it, the repair crew must pinpoint the exact location
of the problem. even though the monitored signal is
extremely faint, the crew can guide their vessel straight
to the right spot, thanks to bell Labs’ optical time
Domain reflector technology. it’s just one example of
how bell Labs is solving global communications chal-
lenges.
at bell Labs, ‘revolutionary’ is everyday.
Continuously innovating technologies that allow people
to connect, share and do, bell labs is at the frontier of
advances that re-imagine the way we communicate.
thirteen of its scientists have been awarded nobel priz-
es. Customers rely on bell labs for insight into the ever-
changing world of communications and guidance on the
best way forward. And the entire Alcatel-lucent team
looks to bell labs for leadership in defining energy-
efficient communications networks with revolutionary
capabilities.
this is where breakthroughs are born:
At eight bell labs research centers around the world—in
the u.S., France, belgium, Germany, ireland, india, China
and South Korea; as a result of partnerships and collabo-
ration with more than 200 other leading laboratories,
academic institutions and customer organizations. All
focused on bringing the best possible thinking to the
problems of the day, and fresh perspectives on the pos-
sibilities for tomorrow.
64
2010 AnnuAl report
breakthroUgh
INNOVATIONS
information at blistering speeds: optics at 100g
The rapid increase in video communications and the addition
of millions of new subscribers are driving demand for
higher-speed networks. Working together in anticipation of
these trends, Bell Labs scientists and technical experts
throughout Alcatel-Lucent developed novel optical
r&D at aLcateL-LUcent technologies that made the company first to market with a
single carrier 100 Gigabit-per-second optical transmission
Participation in system. This solution will provide customers with the
100 high-speed capacity they need well into the future.
standards bodies turning copper into gold: Phantom mode
The capacity and performance requirements of new video and
data services are pushing existing copper access networks to
27,900 their limits. In some cases, it’s not an affordable option to
replace that copper with faster fiber. For network companies
Active patents in that boat, Bell Labs has developed a unique solution called
(2,400 obtained in 2010) Phantom Mode that ups copper-wire capacity by as much as
50 percent, enabling speeds of 300 Megabits per second.
immersive COMMUNICATION
Ever since the introduction of the first videoconferencing
system, the promise of remote medical diagnostics or
“as good as being there” video meetings has seemed within reach.
But this promise has not yet been fully realized.
A Bell Labs research initiative called Immersive Communication
promises to change that by generating innovations that will allow
people to work together in real time no matter where they are.
Employing sensors, video processing, novel user interfaces,
high-speed networking technology—and accessible from almost
any device—it creates virtual environments in which people
separated by distance can almost literally gather for discussions,
information sharing and collaborative work.
65
2010 AnnuAl report
the strategy book
INNovATIoN
Lean, green, anD
reaDy to groW with
By 2015, there will be 18 times as
many smartphones using 30 times
more data as there are today. net-
works will need more capacity to
keep pace, but the traditional ways
of adding that capacity won’t serve.
they’re too clumsy, requiring too
much hands-on intervention by
technicians to set up and maintain.
they clutter the urban skyline with
antennas. And they’re too power-
hungry— the mobile industry already
produces as many carbon emissions
on a daily basis as 15 million cars.
It’s time for a game-changer. recog-
nizing all of these challenges, bell
labs set out to come up with a new
approach to wireless networks, and
the result was lightradio™. lightra-
dio distributes the elements of con-
ventional wireless base stations (the
equipment that controls wireless
antennas and transmitters) across
the network, doubling wireless net-
work capacity while cutting costs in
half.
The heart of this innovation is the
lightRadio cube. A tiny piece of
equipment weighing less than
400 grams, the cube makes it sim-
pler for mobile companies to set up
new sites, minimizes maintenance
time and costs by requiring crews to
visit just one site instead of several,
and makes it easier to add capacity
to the network as demand grows. it
66
2010 AnnuAl report
from
in
allows any wireless tower to handle
any type of signal—including the
next wave of wireless technology
sions like video.
at
created to handle complex transmis-
lightRadio helps bridge the digital
divide. by 2015, five billion people
will still be without high-speed inter-
net access. lightweight and easy to
deploy, lightradio can be mounted in
practically any location and can be
used with alternative energy sourc-
es to deliver energy-efficient mobile
service to nearly anyone, anywhere
in the world.
by making communications
networks dramatically
more energy efficient,
we will help any industry
that uses them to become
greener as well.
JEoNG KIM,
PRESIDENT BELL LABS
a chaLLenge
WithoUt borDers,
a soLUtion WithoUt
PreceDent
Communication networks could be
10,000 times more energy efficient
than they are today. that’s what bell
labs found when it analyzed every
aspect of the way today’s networks
consume power. Clearly, the industry
has a massive opportunity to reduce
its environmental impact. the ques-
tion is how?
Going green is a collective concern.
everyone involved in communica-
tions has a role to play in making the
sector more sustainable: network
companies, equipment makers and
the communications service provid-
ers who deliver connectivity to con-
sumers. Change will require new
thinking, new technologies and fresh
perspectives on how to make net-
works leaner, cleaner and more effi-
cient. that’s why, in January 2010,
bell labs facilitated the creation of
the Greentouch™ consortium—a
group of the top international think-
ers from industry labs, telcos, aca-
demia, and government and non-
profit research institutions.
The goal: improve network energy
efficiency by a factor of 1,000.
Greentouch is laying the groundwork
for tomorrow’s sustainable networks
by researching and developing ambi-
tious, visionary solutions to address
the increasing energy demands of
the communications industry as it
continues to experience enormous,
rapid growth. over the next five
years, the Greentouch consortium
aims to demonstrate what’s needed
to produce innovative new technolo-
gies that will dramatically increase
energy efficiency and finally elimi-
nate the need for telcos to sacrifice
efficiency in the name of perfor-
mance.
Momentum is building. As 2010
came to a close, 15 Greentouch
research projects were already
underway. Consortium members
from europe, Asia, Australia and
north America are collaborating on
a whole range of solutions that can
be applied throughout the industry
and even beyond, extending the
benefits of their unprecedented col-
laboration to other sectors. the
result will be not only a greener
future for telecoms but also a more
sustainable future for all.
67
2010 AnnuAl report
the strategy book
INNovATIoN
Lean, green, anD
reaDy to groW with
By 2015, there will be 18 times as
many smartphones using 30 times
more data as there are today. net-
works will need more capacity to
keep pace, but the traditional ways
of adding that capacity won’t serve.
they’re too clumsy, requiring too
much hands-on intervention by
technicians to set up and maintain.
they clutter the urban skyline with
antennas. And they’re too power-
hungry— the mobile industry already
produces as many carbon emissions
on a daily basis as 15 million cars.
It’s time for a game-changer. recog-
nizing all of these challenges, bell
labs set out to come up with a new
approach to wireless networks, and
the result was lightradio™. lightra-
dio distributes the elements of con-
ventional wireless base stations (the
equipment that controls wireless
antennas and transmitters) across
the network, doubling wireless net-
work capacity while cutting costs in
half.
The heart of this innovation is the
lightRadio cube. A tiny piece of
equipment weighing less than
400 grams, the cube makes it sim-
pler for mobile companies to set up
new sites, minimizes maintenance
time and costs by requiring crews to
visit just one site instead of several,
and makes it easier to add capacity
to the network as demand grows. it
66
2010 AnnuAl report
from
in
allows any wireless tower to handle
any type of signal—including the
next wave of wireless technology
sions like video.
at
created to handle complex transmis-
lightRadio helps bridge the digital
divide. by 2015, five billion people
will still be without high-speed inter-
net access. lightweight and easy to
deploy, lightradio can be mounted in
practically any location and can be
used with alternative energy sourc-
es to deliver energy-efficient mobile
service to nearly anyone, anywhere
in the world.
by making communications
networks dramatically
more energy efficient,
we will help any industry
that uses them to become
greener as well.
JEoNG KIM,
PRESIDENT BELL LABS
a chaLLenge
WithoUt borDers,
a soLUtion WithoUt
PreceDent
Communication networks could be
10,000 times more energy efficient
than they are today. that’s what bell
labs found when it analyzed every
aspect of the way today’s networks
consume power. Clearly, the industry
has a massive opportunity to reduce
its environmental impact. the ques-
tion is how?
Going green is a collective concern.
everyone involved in communica-
tions has a role to play in making the
sector more sustainable: network
companies, equipment makers and
the communications service provid-
ers who deliver connectivity to con-
sumers. Change will require new
thinking, new technologies and fresh
perspectives on how to make net-
works leaner, cleaner and more effi-
cient. that’s why, in January 2010,
bell labs facilitated the creation of
the Greentouch™ consortium—a
group of the top international think-
ers from industry labs, telcos, aca-
demia, and government and non-
profit research institutions.
The goal: improve network energy
efficiency by a factor of 1,000.
Greentouch is laying the groundwork
for tomorrow’s sustainable networks
by researching and developing ambi-
tious, visionary solutions to address
the increasing energy demands of
the communications industry as it
continues to experience enormous,
rapid growth. over the next five
years, the Greentouch consortium
aims to demonstrate what’s needed
to produce innovative new technolo-
gies that will dramatically increase
energy efficiency and finally elimi-
nate the need for telcos to sacrifice
efficiency in the name of perfor-
mance.
Momentum is building. As 2010
came to a close, 15 Greentouch
research projects were already
underway. Consortium members
from europe, Asia, Australia and
north America are collaborating on
a whole range of solutions that can
be applied throughout the industry
and even beyond, extending the
benefits of their unprecedented col-
laboration to other sectors. the
result will be not only a greener
future for telecoms but also a more
sustainable future for all.
67
2010 AnnuAl report
 with
the strategy book

INNovATIoN
in
a ForUm For THE WORLD
Where better a unique organization, the World economic Forum (WeF) unites

iDeas begin at
business, government, academic and civil society leaders in responding
to the world’s challenges.
Alcatel-Lucent has been a strategic Partner
in the Forum since 2009: it is a key pillar of
Alcatel-Lucent is bringing the world’s brightest minds the company’s corporate responsibility
together to exchange expertise and tackle some of the activities. CEo Ben verwaayen is a member of
the WEF Foundation Board; Rajeev singh-Molares,
toughest challenges facing our planet. President Asia-Pacific Region, is vice Chairman of
WEF’s Telecom Industry Global Agenda Council
(GAC); Jeong Kim, President of Bell Labs,
is a member of the WEF Tech Pioneers selection
the power of partnership Committee and science Advisory Council;
Two heads—or two hundred—are better than one. Alcatel-lucent stephen Carter, Chief Marketing, strategy and
is investing in partnerships with innovators, thought leaders and Communications officer, supports the Young
academics around the globe to create a true ‘knowledge society’— Global Leaders Community; and Adolfo Hernandez,
one that will spawn revolutionary ideas and generate previously President Europe, Middle East and Africa Region
undreamed-of technologies. Whether it’s designing eco-friendly supports global growth companies in Europe
networks, dreaming up ways of cutting energy consumption or through mentoring.
developing the internet of the future, open innovation transforms
novel insights into real products, services and businesses through
collaboration and cooperation.
Focused on digital economies, rural inclusion and
climate change, Alcatel-Lucent has taken a thought
leadership role in a number of WEF projects. In
2010, Bell Labs, through the Telecoms Industry
GAC, undertook a study (to which Bright simons,
interviewed below, contributed) on the impact of
ubiquitous network access. That study provides a
basis on which governments and investment
agencies can examine the feasibility and benefits
of various business models for technology
adoption and deployment.
Alcatel-Lucent and its stakeholders are committed
to the WEF’s goal of improving the state of the
world. With the right leadership, the right thinking
and—most importantly—the right stakeholders
around us, we can make a difference.

The walls are coming down. Communication technologies have

shrunk the world, bringing people closer together and shining a
bright light on the fact that we all have a stake in the same future.
Mobilizing resources in single labs, through national projects and
global initiatives, Alcatel-lucent is building partnerships to ensure
that future is a good one—for the telecommunications industry and
for our world as a whole.
THE EARTH CONSORTIUM
Bell Labs serves as
project coordinator in
this ambitious venture
that has leading European communications
companies and research organizations
working together to halve the energy
consumption of next-generation wireless
networks by 2012. one of 15 partners,
Alcatel-Lucent is helping develop a new
generation of energy-efficient equipment
and components, as well as energy-saving
strategies for building networks. The EARTH
consortium (whose name stands for Energy
Aware Radio and neTwork tecHnologies) is
also looking to produce solutions that make
energy consumption a factor in the way
tomorrow’s networks are managed.
UNIVERSITy OF MELBOURNE
Bell Labs and the University of Melbourne
launched the Centre for Energy Efficient
Telecommunications (CEET) envisioning that
it will soon be an international hotspot for
developing energy-saving communication
technologies. Given that our worldwide use
of communication networks will continue to
grow exponentially in the coming years—and
our power demands along with it—CEET’s
opening couldn’t be timelier. And because
the University of Melbourne and Bell Labs
are both members of the GreenTouch™
consortium, the Centre’s research will also
be coupled to the industry’s most ambitious
research program for improving energy
efficiency.
the PoWer oF
change—
IN THE PALM OF
THE HAND
What role can social networks
play in developing countries?
they can be revolutionary. Social
networks allow people to go beyond
geographical constraints and con-
nect with people who share the
same concerns, issues or politics
wherever they may live. Mobile sys-
tems can catalyze human action,
changing the politics of a country—as
we’ve seen in recent months.
What about connectivity
in general?
Mobile phones vastly enhance com-
munity, improving the communica-
tions infrastructure. i’ve seen it in
hospitals in Ghana, for example,
where the absence or presence of
adequate connectivity across differ-
ent departments can often mean life
or death for patients.
What were some of the key INTERvIEW
themes that emerged from
the 2010 WEF’s Global Agenda
WITH…
Council?
We know that everywhere, all-the-
time connectivity is inevitable. but
how can we use it to improve the
quality of life for people all over the
world? How can universal access
improve health, living standards,
education? We need to apply mobile
technology to these sectors and
evolve our systems to take advan-
tage of new ways of communicating.
What’s the project
you’re currently working on?
We’re working with pharmaceutical BRIGHT sIMoNs,
companies to assign unique iD codes ENTREPRENEUR
to medicines, thus keeping counter- technology innovator, development
feit versions off the market in Africa activist and social entrepreneur,
and Southeast Asia. these codes can bright b. Simons is an executive at
the Accra-based think tank, iMAni;
be scanned using any number of
president of the mpedigree network;
mobile messaging technologies. it’s and a member of the World
just one example of how information economic Forum’s telecoms
and communications technologies industry Global Agenda Council and
technology pioneers Community.
can directly impact global health.

68 69
2010 AnnuAl report 2010 AnnuAl report
 with
the strategy book

INNovATIoN
in
a ForUm For THE WORLD
Where better a unique organization, the World economic Forum (WeF) unites

iDeas begin at
business, government, academic and civil society leaders in responding
to the world’s challenges.
Alcatel-Lucent has been a strategic Partner
in the Forum since 2009: it is a key pillar of
Alcatel-Lucent is bringing the world’s brightest minds the company’s corporate responsibility
together to exchange expertise and tackle some of the activities. CEo Ben verwaayen is a member of
the WEF Foundation Board; Rajeev singh-Molares,
toughest challenges facing our planet. President Asia-Pacific Region, is vice Chairman of
WEF’s Telecom Industry Global Agenda Council
(GAC); Jeong Kim, President of Bell Labs,
is a member of the WEF Tech Pioneers selection
the power of partnership Committee and science Advisory Council;
Two heads—or two hundred—are better than one. Alcatel-lucent stephen Carter, Chief Marketing, strategy and
is investing in partnerships with innovators, thought leaders and Communications officer, supports the Young
academics around the globe to create a true ‘knowledge society’— Global Leaders Community; and Adolfo Hernandez,
one that will spawn revolutionary ideas and generate previously President Europe, Middle East and Africa Region
undreamed-of technologies. Whether it’s designing eco-friendly supports global growth companies in Europe
networks, dreaming up ways of cutting energy consumption or through mentoring.
developing the internet of the future, open innovation transforms
novel insights into real products, services and businesses through
collaboration and cooperation.
Focused on digital economies, rural inclusion and
climate change, Alcatel-Lucent has taken a thought
leadership role in a number of WEF projects. In
2010, Bell Labs, through the Telecoms Industry
GAC, undertook a study (to which Bright simons,
interviewed below, contributed) on the impact of
ubiquitous network access. That study provides a
basis on which governments and investment
agencies can examine the feasibility and benefits
of various business models for technology
adoption and deployment.
Alcatel-Lucent and its stakeholders are committed
to the WEF’s goal of improving the state of the
world. With the right leadership, the right thinking
and—most importantly—the right stakeholders
around us, we can make a difference.

The walls are coming down. Communication technologies have

shrunk the world, bringing people closer together and shining a
bright light on the fact that we all have a stake in the same future.
Mobilizing resources in single labs, through national projects and
global initiatives, Alcatel-lucent is building partnerships to ensure
that future is a good one—for the telecommunications industry and
for our world as a whole.
THE EARTH CONSORTIUM
Bell Labs serves as
project coordinator in
this ambitious venture
that has leading European communications
companies and research organizations
working together to halve the energy
consumption of next-generation wireless
networks by 2012. one of 15 partners,
Alcatel-Lucent is helping develop a new
generation of energy-efficient equipment
and components, as well as energy-saving
strategies for building networks. The EARTH
consortium (whose name stands for Energy
Aware Radio and neTwork tecHnologies) is
also looking to produce solutions that make
energy consumption a factor in the way
tomorrow’s networks are managed.
UNIVERSITy OF MELBOURNE
Bell Labs and the University of Melbourne
launched the Centre for Energy Efficient
Telecommunications (CEET) envisioning that
it will soon be an international hotspot for
developing energy-saving communication
technologies. Given that our worldwide use
of communication networks will continue to
grow exponentially in the coming years—and
our power demands along with it—CEET’s
opening couldn’t be timelier. And because
the University of Melbourne and Bell Labs
are both members of the GreenTouch™
consortium, the Centre’s research will also
be coupled to the industry’s most ambitious
research program for improving energy
efficiency.
the PoWer oF
change—
IN THE PALM OF
THE HAND
What role can social networks
play in developing countries?
they can be revolutionary. Social
networks allow people to go beyond
geographical constraints and con-
nect with people who share the
same concerns, issues or politics
wherever they may live. Mobile sys-
tems can catalyze human action,
changing the politics of a country—as
we’ve seen in recent months.
What about connectivity
in general?
Mobile phones vastly enhance com-
munity, improving the communica-
tions infrastructure. i’ve seen it in
hospitals in Ghana, for example,
where the absence or presence of
adequate connectivity across differ-
ent departments can often mean life
or death for patients.
What were some of the key INTERvIEW
themes that emerged from
the 2010 WEF’s Global Agenda
WITH…
Council?
We know that everywhere, all-the-
time connectivity is inevitable. but
how can we use it to improve the
quality of life for people all over the
world? How can universal access
improve health, living standards,
education? We need to apply mobile
technology to these sectors and
evolve our systems to take advan-
tage of new ways of communicating.
What’s the project
you’re currently working on?
We’re working with pharmaceutical BRIGHT sIMoNs,
companies to assign unique iD codes ENTREPRENEUR
to medicines, thus keeping counter- technology innovator, development
feit versions off the market in Africa activist and social entrepreneur,
and Southeast Asia. these codes can bright b. Simons is an executive at
the Accra-based think tank, iMAni;
be scanned using any number of
president of the mpedigree network;
mobile messaging technologies. it’s and a member of the World
just one example of how information economic Forum’s telecoms
and communications technologies industry Global Agenda Council and
technology pioneers Community.
can directly impact global health.

68 69
2010 AnnuAl report 2010 AnnuAl report
the strategy book

INNovATIoN

Limits are maDe TO BE PUSHED

inventing INTERvIEW
WITH… What does it mean to you mizing the imperfections that can

oPPortUnities at
that you’ve been named to
MIT Tech Review’s TR35?
it’s an honor, of course. When you
start to weaken an optical signal over
a long distance.

think the judges were looking at You’ve broken some records.

At the heart of an innovation culture is the free flow of
ideas—fostered at Alcatel-Lucent through programs that tap
into employees’ knowledge, experience and imagination.
the idea is just the beginning:
boot camps
How do you turn a good idea into a bona fide
innovation? by giving the person who had the
idea the chance to develop it—whether she
works in a research role, on the front line in a
managed service center, or at a desk writing
marketing material.
Alcatel-lucent’s entrepreneurial boot Camps
give all employees the opportunity not only to
make suggestions for new products or solu-
tions but also to be part of the cross-organiza-
tional team that builds the business case to
take the idea forward. First held in belgium in
2006, the now-global boot Camp program
functions like a ‘mini-MbA’ (Master of business
Administration): employees are trained in how
aUgment yOUR REALITy
Emerging from the French Entrepreneurial
Boot Camp, dekaps’ is an approach to
‘augmented reality’ that promises to revolutionize
mobile phone use. What is ‘augmented reality’?
Imagine you see a building with unique
architecture and want to know more about it.
Film it with your phone and get back
a whole range of information. or, to give another
example, you might scan a barcode or an image on
a poster and receive video or music clips related to
the advertised event. At Mobile World Congress
in Barcelona, dekaps’ unveiled an iPhone1 app that
let participants take a 3D tour of the city.
1
iPhone is a trademark of Apple Inc.,
registered in the U.S. and other countries.
to develop a proper business case, receiving
guidance from experts over the course of a
structured three-month process.
A panel of corporate senior leaders and
external investors evaluates each proposal
and recommends next steps—whether moving
the idea to an Alcatel-lucent business group,
Alcatel-lucent Ventures or even to an external
venture capitalist.
the entrepreneurial boot Camps are about
finding the best ideas—wherever they are—and
delivering them to market. they’re about build-
ing the innovation capacity of the company as
a whole. And they’re about giving employees
the opportunity to feel a sense of ownership
over what could be the next big thing.
GABRIEL CHARLET
With 26 patents and the Fabry-de-
Gramont prize to his name by age 30,
Charlet was inducted last year into
the Mit tech review’s prestigious tr35,
an elite group of young innovators.
IT’S ALL ABOUT Location
You’re head of Bell Labs in India.
What’s it like working in
one of the biggest potential
communications markets
in the world?
it’s very exciting. When our team
looks out at the country, we see liter-
ally millions of people whose lives
could be changed by technology, and
we of course want to deliver that
change. in india, and around the
world.
You’ve had some experience
delivering that kind of change.
Yes, developing solutions that use
location-specific information to tar-
get messages and content to mobile
phone users. those kinds of loca-
tion-based solutions are going to
underlie all kinds of applications in
the future. Advertisers will push
more than 300 candidates—that’s a
very big field of very bright people—
it seems quite amazing. i think it’s
very good for Alcatel-lucent and bell
labs because it highlights the really
exceptional work we’re doing here.
What is that work, specifically?
We’re trying to get more speed and
capacity out of today’s optical net-
works. My work focuses on Wave-
length Division Multiplexing (WDM),
which enables high-speed data trans-
mission and is at the core of the inter-
net. What i’ve been looking at are
‘coherent detection’ and ‘advanced
modulation formats.’ Without getting
into the technical details, these are
ways of increasing bit rate and mini-
messages to people who are near a
particular store. parents will get
alerts if their child wanders beyond
the edge of the yard. there are busi-
ness applications, personal applica-
tions and safety applications to loca-
tion technology.
You were recently recognized
with an Excellence in
Innovation Award at
the International India
Innovation summit.
that was a proud moment. the Sum-
mit has been held for several years
now—it’s a sign of india’s commit-
ment to innovation. Seeing that
engagement is inspiring for our bell
labs team; it’s very clear we’re part
of a movement that’s going to be
very big and drive all kinds of dis-
coveries.
Yes, we have. First, we were able to
transport data at a rate of 7.2 terabits
per second, then at 15.5 terabits per
second—over a fiber more than
7,000 kilometers long. i think the
comparison one commentator made
was that’s like transmitting more than
6,000 feature-length DVD movies in a
minute. the previous threshold was
about 1.2 terabits for commercial
systems, so that’s a significant gain.
Where has this discovery led?
our techniques are being used in the
40-Gigabit-per-second solution, and
in the 100G solution Alcatel-lucent
launched in 2010. it’s exciting to
know that they’re going to be put in
action.
INTERvIEW
WITH…
vIsHY PoosALA
A respected researcher in location-based
applications, software architecture and
venturing, poosala holds 32 patents and
has received the bell labs president’s
Gold Award three times.

70 71
2010 AnnuAl report 2010 AnnuAl report
the strategy book

INNovATIoN

Limits are maDe TO BE PUSHED

inventing INTERvIEW
WITH… What does it mean to you mizing the imperfections that can

oPPortUnities at
that you’ve been named to
MIT Tech Review’s TR35?
it’s an honor, of course. When you
start to weaken an optical signal over
a long distance.

think the judges were looking at You’ve broken some records.

At the heart of an innovation culture is the free flow of
ideas—fostered at Alcatel-Lucent through programs that tap
into employees’ knowledge, experience and imagination.
the idea is just the beginning:
boot camps
How do you turn a good idea into a bona fide
innovation? by giving the person who had the
idea the chance to develop it—whether she
works in a research role, on the front line in a
managed service center, or at a desk writing
marketing material.
Alcatel-lucent’s entrepreneurial boot Camps
give all employees the opportunity not only to
make suggestions for new products or solu-
tions but also to be part of the cross-organiza-
tional team that builds the business case to
take the idea forward. First held in belgium in
2006, the now-global boot Camp program
functions like a ‘mini-MbA’ (Master of business
Administration): employees are trained in how
aUgment yOUR REALITy
Emerging from the French Entrepreneurial
Boot Camp, dekaps’ is an approach to
‘augmented reality’ that promises to revolutionize
mobile phone use. What is ‘augmented reality’?
Imagine you see a building with unique
architecture and want to know more about it.
Film it with your phone and get back
a whole range of information. or, to give another
example, you might scan a barcode or an image on
a poster and receive video or music clips related to
the advertised event. At Mobile World Congress
in Barcelona, dekaps’ unveiled an iPhone1 app that
let participants take a 3D tour of the city.
1
iPhone is a trademark of Apple Inc.,
registered in the U.S. and other countries.
to develop a proper business case, receiving
guidance from experts over the course of a
structured three-month process.
A panel of corporate senior leaders and
external investors evaluates each proposal
and recommends next steps—whether moving
the idea to an Alcatel-lucent business group,
Alcatel-lucent Ventures or even to an external
venture capitalist.
the entrepreneurial boot Camps are about
finding the best ideas—wherever they are—and
delivering them to market. they’re about build-
ing the innovation capacity of the company as
a whole. And they’re about giving employees
the opportunity to feel a sense of ownership
over what could be the next big thing.
GABRIEL CHARLET
With 26 patents and the Fabry-de-
Gramont prize to his name by age 30,
Charlet was inducted last year into
the Mit tech review’s prestigious tr35,
an elite group of young innovators.
IT’S ALL ABOUT Location
You’re head of Bell Labs in India.
What’s it like working in
one of the biggest potential
communications markets
in the world?
it’s very exciting. When our team
looks out at the country, we see liter-
ally millions of people whose lives
could be changed by technology, and
we of course want to deliver that
change. in india, and around the
world.
You’ve had some experience
delivering that kind of change.
Yes, developing solutions that use
location-specific information to tar-
get messages and content to mobile
phone users. those kinds of loca-
tion-based solutions are going to
underlie all kinds of applications in
the future. Advertisers will push
more than 300 candidates—that’s a
very big field of very bright people—
it seems quite amazing. i think it’s
very good for Alcatel-lucent and bell
labs because it highlights the really
exceptional work we’re doing here.
What is that work, specifically?
We’re trying to get more speed and
capacity out of today’s optical net-
works. My work focuses on Wave-
length Division Multiplexing (WDM),
which enables high-speed data trans-
mission and is at the core of the inter-
net. What i’ve been looking at are
‘coherent detection’ and ‘advanced
modulation formats.’ Without getting
into the technical details, these are
ways of increasing bit rate and mini-
messages to people who are near a
particular store. parents will get
alerts if their child wanders beyond
the edge of the yard. there are busi-
ness applications, personal applica-
tions and safety applications to loca-
tion technology.
You were recently recognized
with an Excellence in
Innovation Award at
the International India
Innovation summit.
that was a proud moment. the Sum-
mit has been held for several years
now—it’s a sign of india’s commit-
ment to innovation. Seeing that
engagement is inspiring for our bell
labs team; it’s very clear we’re part
of a movement that’s going to be
very big and drive all kinds of dis-
coveries.
Yes, we have. First, we were able to
transport data at a rate of 7.2 terabits
per second, then at 15.5 terabits per
second—over a fiber more than
7,000 kilometers long. i think the
comparison one commentator made
was that’s like transmitting more than
6,000 feature-length DVD movies in a
minute. the previous threshold was
about 1.2 terabits for commercial
systems, so that’s a significant gain.
Where has this discovery led?
our techniques are being used in the
40-Gigabit-per-second solution, and
in the 100G solution Alcatel-lucent
launched in 2010. it’s exciting to
know that they’re going to be put in
action.
INTERvIEW
WITH…
vIsHY PoosALA
A respected researcher in location-based
applications, software architecture and
venturing, poosala holds 32 patents and
has received the bell labs president’s
Gold Award three times.

70 71
2010 AnnuAl report 2010 AnnuAl report
 Fast ForWarDs
the strategy book
Flash thoughts on the future from some of
Alcatel-Lucent’s young leaders.
“Today my parents can
see and talk to their grandson
even though they are half
the globe away. In another decade,
who knows-maybe they’ll be able
to reach out and touch.”
1 thanh-Dinh, VIETNAM
“It’s July 2014. We’re
in Maracana Rio watching
another thrilling Brazil game.
Photos, texts and videos
from people everywhere
appear instantly as
3D holographic projections
on screens and websites.
I see myself up there,
shouting: ‘Champions!’”
12 cassia, BRASIL
“Geographic boundaries
are meaningless: our future
is one of shared values.”
11 ravi, CANADA
72
2010 AnnuAl report
“History has shown that the more we’re
able to share with people, the happier
we are. With our communications
technology, the world is destined to
become a happier place.”
2 Javier, MExICO
1 2
12
11
10
“I watch my kids and see they’re the teachers,
I’m the student. Technology is so intuitive for them.
If they’re the prototype, future generations
are going to have the wonders of time and space
literally at their fingertips.”
9 osvaLDo, USA
“I like to imagine what the famous Chinese scientist, “If there’s one thing I’d like
zu Chongzhi (429-500) would make of cloud computing and future technology to do,
the Internet. I think he’d use those tools to discover another it would be to share feelings.
beautiful planet in the universe where we could live and work.”
10 JULia, CHINA
Not just video, text and voice,
but actual emotions—so that
people who call me on my mobile
will already know beforehand
how I feel.”
“Communications technology 3 markUs, AUSTRALIA
is becoming_and will continue
to be_the tool of revolutions.”
“If Alexander Graham Bell were
alive today, I think he’d be working
5 seLma, FRANCE
on a whole new kind of
communications technology—
3
one that would allow us to
communicate with our minds only,
without the use of voice or text.”
sUniL, INDIA
4
5
6
4
7
“The world’s youth
see it clearly. Social connectivity
9 isn’t a trend. It’s a tool for
making history.”
WaeL, EGyPT
6
8
“C-3PO, the friendly droid in Star Wars,
was fluent in six million forms of “Just as the winds disperse seeds
communication. Thanks to the Internet, to grow, technology gives us the ability
we can know just one language and to spread and sow great ideas over
still appreciate as many people as C-3PO.” thousands of kilometers in seconds.”
7 sevket, TURKEy 8 emmanUeLLe, GERMANy
73
2010 AnnuAl report
 Fast ForWarDs
the strategy book
Flash thoughts on the future from some of
Alcatel-Lucent’s young leaders.
“Today my parents can
see and talk to their grandson
even though they are half
the globe away. In another decade,
who knows-maybe they’ll be able
to reach out and touch.”
1 thanh-Dinh, VIETNAM
“It’s July 2014. We’re
in Maracana Rio watching
another thrilling Brazil game.
Photos, texts and videos
from people everywhere
appear instantly as
3D holographic projections
on screens and websites.
I see myself up there,
shouting: ‘Champions!’”
12 cassia, BRASIL
“Geographic boundaries
are meaningless: our future
is one of shared values.”
11 ravi, CANADA
72
2010 AnnuAl report
“History has shown that the more we’re
able to share with people, the happier
we are. With our communications
technology, the world is destined to
become a happier place.”
2 Javier, MExICO
1 2
12
11
10
“I watch my kids and see they’re the teachers,
I’m the student. Technology is so intuitive for them.
If they’re the prototype, future generations
are going to have the wonders of time and space
literally at their fingertips.”
9 osvaLDo, USA
“I like to imagine what the famous Chinese scientist, “If there’s one thing I’d like
zu Chongzhi (429-500) would make of cloud computing and future technology to do,
the Internet. I think he’d use those tools to discover another it would be to share feelings.
beautiful planet in the universe where we could live and work.”
10 JULia, CHINA
Not just video, text and voice,
but actual emotions—so that
people who call me on my mobile
will already know beforehand
how I feel.”
“Communications technology 3 markUs, AUSTRALIA
is becoming_and will continue
to be_the tool of revolutions.”
“If Alexander Graham Bell were
alive today, I think he’d be working
5 seLma, FRANCE
on a whole new kind of
communications technology—
3
one that would allow us to
communicate with our minds only,
without the use of voice or text.”
sUniL, INDIA
4
5
6
4
7
“The world’s youth
see it clearly. Social connectivity
9 isn’t a trend. It’s a tool for
making history.”
WaeL, EGyPT
6
8
“C-3PO, the friendly droid in Star Wars,
was fluent in six million forms of “Just as the winds disperse seeds
communication. Thanks to the Internet, to grow, technology gives us the ability
we can know just one language and to spread and sow great ideas over
still appreciate as many people as C-3PO.” thousands of kilometers in seconds.”
7 sevket, TURKEy 8 emmanUeLLe, GERMANy
73
2010 AnnuAl report
the strategy book

PEoPLE

breaking boUnDaries
Alcatel-Lucent is a technology company,
and its people are technology people—
expert, international and driven to innovate. oUr PeoPLe PLeDge
Let talent shine
How do you bring out the best in people?
By managing them effectively. By giving
future experts and leaders the opportunities to
INTERvIEW grow and letting people make their own plans
WITH… for professional development.
actively to develop the talents of the next
generation of local leaders, people from
diverse backgrounds and nationalities.
And it’s committed to increasing the role of
women in management, particularly at
the executive level.

Develop diversity Line up leaders for the future

In a technology company, what is
HR’s top priority?
It’s all about engagement. Our business is transforma-
tion—and you can’t transform anything without people.
We’ve created an online hub called ‘Engage,’ which is a
kind of social media and collaboration site internal to the
company that lets colleagues connect in real time, share
insights, links and documents. It’s a tool for our people
to contribute to our culture of innovation.
What makes someone an ‘Alcatel-Lucent person’?
Entrepreneurial spirit. The desire to be a responsible
world citizen. And of course, a passion for technology.
We also love our people to be disruptive—to move from
one field to another and mix things up. To that end, we’ve
our business opened up a global job market where any of our people
is transformation— can apply for any type of job and bring new ideas to new
careers.
and you can’t
Does innovation have a secret ingredient?
transform anything I see it as being strongly linked with diversity, with new
without people. ways of thinking. It’s about breaking boundaries, foster-
ing connectivity between people wherever they are. The
PIERRE BARNABÉ more diverse our teams become—the more they’re linked
EVP HUMAN RESOURCES AND with and shaped by different cultures—the more we
TRANSFORMATION develop our innovation. In R&D, our teams in the U.S.,
Europe, Africa and Asia-Pacific are all connected, all
working together to innovate. At the same time, they
give us a local presence. We’re in 130 countries. We
speak the language, provide the right services for each
market, and develop innovation by linking with local
Watch the video interview at: universities, partners and subcontractors. It comes down
www.alcatel-lucent.com/barnabe to having the right people in the right places.
variety isn’t just the spice of life— Alcatel-Lucent knows exactly the innovative,
it’s the source of creativity. Diversity entrepreneurial profiles tomorrow’s leaders
brings strength; difference reveals will need to fit, and is identifying the talent today
new perspectives. Alcatel-Lucent works to fill those roles tomorrow.
genDer Diversity—pilot in inDiA
INTERvIEW
The Gender Equality Project is a swiss non-profit organization WITH…
committed to closing the gender gap in workplace opportunities
through a global certification system. In 2010, Alcatel-Lucent
worked with the Project to test and streamline the assessment
methodology as part of a pilot program in India.
Why is gender equality with a structured and systematic
so important in today’s
global reality?
approach to gender equality. We
measure gender composition at dif-
At the global level, there’s still a 40 ferent organizational levels as well
percent gap between women and as pay gaps and employee satisfac-
men in terms of economic participa- tion with equality of opportunity.
tion and opportunity. it’s time for a
more inclusive culture that empha- How will the Project’s
sizes diverse approaches to decision certification process make
making and enables companies to a difference in ensuring equal
NICoLE sCHWAB
benefit from the deepest possible opportunity in the workplace?
talent pool. in the corporate world, whatever Co-founder of the Gender equality
project and a past Director of
gets measured gets done. Applying the Forum of Young Global leaders
What is the Gender for a certification in gender equality at the World economic Forum.
Equality Project doing to is not just a purpose but also a pro- She has also worked on health sector
address that gap? cess that generates awareness, rais- reform projects in latin America for
the World bank and the Ministry of
We’ve developed an assessment es questions, provides answers and Health of bolivia.
methodology to provide companies catalyzes sustainable change.

74 75
2010 AnnuAl report 2010 AnnuAl report
the strategy book

PEoPLE

breaking boUnDaries
Alcatel-Lucent is a technology company,
and its people are technology people—
expert, international and driven to innovate. oUr PeoPLe PLeDge
Let talent shine
How do you bring out the best in people?
By managing them effectively. By giving
future experts and leaders the opportunities to
INTERvIEW grow and letting people make their own plans
WITH… for professional development.
actively to develop the talents of the next
generation of local leaders, people from
diverse backgrounds and nationalities.
And it’s committed to increasing the role of
women in management, particularly at
the executive level.

Develop diversity Line up leaders for the future

In a technology company, what is
HR’s top priority?
It’s all about engagement. Our business is transforma-
tion—and you can’t transform anything without people.
We’ve created an online hub called ‘Engage,’ which is a
kind of social media and collaboration site internal to the
company that lets colleagues connect in real time, share
insights, links and documents. It’s a tool for our people
to contribute to our culture of innovation.
What makes someone an ‘Alcatel-Lucent person’?
Entrepreneurial spirit. The desire to be a responsible
world citizen. And of course, a passion for technology.
We also love our people to be disruptive—to move from
one field to another and mix things up. To that end, we’ve
our business opened up a global job market where any of our people
is transformation— can apply for any type of job and bring new ideas to new
careers.
and you can’t
Does innovation have a secret ingredient?
transform anything I see it as being strongly linked with diversity, with new
without people. ways of thinking. It’s about breaking boundaries, foster-
ing connectivity between people wherever they are. The
PIERRE BARNABÉ more diverse our teams become—the more they’re linked
EVP HUMAN RESOURCES AND with and shaped by different cultures—the more we
TRANSFORMATION develop our innovation. In R&D, our teams in the U.S.,
Europe, Africa and Asia-Pacific are all connected, all
working together to innovate. At the same time, they
give us a local presence. We’re in 130 countries. We
speak the language, provide the right services for each
market, and develop innovation by linking with local
Watch the video interview at: universities, partners and subcontractors. It comes down
www.alcatel-lucent.com/barnabe to having the right people in the right places.
variety isn’t just the spice of life— Alcatel-Lucent knows exactly the innovative,
it’s the source of creativity. Diversity entrepreneurial profiles tomorrow’s leaders
brings strength; difference reveals will need to fit, and is identifying the talent today
new perspectives. Alcatel-Lucent works to fill those roles tomorrow.
genDer Diversity—pilot in inDiA
INTERvIEW
The Gender Equality Project is a swiss non-profit organization WITH…
committed to closing the gender gap in workplace opportunities
through a global certification system. In 2010, Alcatel-Lucent
worked with the Project to test and streamline the assessment
methodology as part of a pilot program in India.
Why is gender equality with a structured and systematic
so important in today’s
global reality?
approach to gender equality. We
measure gender composition at dif-
At the global level, there’s still a 40 ferent organizational levels as well
percent gap between women and as pay gaps and employee satisfac-
men in terms of economic participa- tion with equality of opportunity.
tion and opportunity. it’s time for a
more inclusive culture that empha- How will the Project’s
sizes diverse approaches to decision certification process make
making and enables companies to a difference in ensuring equal
NICoLE sCHWAB
benefit from the deepest possible opportunity in the workplace?
talent pool. in the corporate world, whatever Co-founder of the Gender equality
project and a past Director of
gets measured gets done. Applying the Forum of Young Global leaders
What is the Gender for a certification in gender equality at the World economic Forum.
Equality Project doing to is not just a purpose but also a pro- She has also worked on health sector
address that gap? cess that generates awareness, rais- reform projects in latin America for
the World bank and the Ministry of
We’ve developed an assessment es questions, provides answers and Health of bolivia.
methodology to provide companies catalyzes sustainable change.

74 75
2010 AnnuAl report 2010 AnnuAl report
the strategy book

sTRATEGIC ovERvIEW

a high-Leverage strategy the three ‘i’s of our business:

internationalism, innovation and iP.
these are at the heart of everything we do.

P eople have written whole books about strategy,

but I think the most useful definition is a practi-
cal one. Strategy is knowing what you’re willing to give
up in order to get what you want.
At Alcatel-Lucent our strategy is centered on the High
Leverage Network™, which allows our customers to
deliver universal access and profitable applications
through a process of network evolution and operational
transformation. That strategy has guided our choices of
where to focus our efforts, how to package our offerings
and rationalize our portfolio.
Much like in Asia, European customers are seeking to get
full value out of multiple generations of networks and
capitalize on web-based applications. Given the rich
diversity of their markets, they also want specificity and
an appreciation of context: people on the ground who
speak the language, know the culture and understand
how technology fits into the bigger social and economic
picture of their societies. In the Middle East, the mobile
phone is becoming the communication tool of choice; the
same is true in Africa, a continent that has also doubled
its connectivity with the addition of major new subma-
rine cables.
With Bell Labs as our innovation engine, we not only
generate new knowledge and technologies, but more
importantly apply them to the real-world needs of our
customers. The High Leverage Network™ is a prime
example of this: the solution for a future in which people
will demand flexible, immediate access to all manner of
applications—with uncompromising expectations of secu-
rity and high-quality service.
We aim to meet our customers where these demands
converge, giving them the tools to move confidently into
the coming world of cloud services and virtualization.

strategy is knowing
what you’re willing
to give up in order to
get what you want.
sTEPHEN A. CARTER
CHIEF MARKETING, STRATEGy AND
COMMUNICATIONS OFFICER
Behind strategy is culture, a company’s unique strengths
and orientation. At Alcatel-Lucent, these might be called
the “three ‘I’s”: we are an inherently international orga-
nization, both in terms of our presence and our people;
we are obsessed with innovation; and we are convinced
that IP, the Internet Protocol, is not just the enabler of a
powerful product set but more crucially a leap forward
in capability and efficiency for every type of network.
From our perspective, the move to IP technology may be
as significant as the shift from transistors to semiconduc-
tors in computing.
Mirroring our Markets
Our Chief Executive Officer, Ben Verwaayen, is fond of
saying that talent has no passport and is not constrained
by one. This is also true of technology. Our customers’
operational reality is a global one in which worldwide
access to talent and technology solutions is a prerequisite.
Being international is in our DNA. We are headquartered
in Paris, France, with 20 strategic hubs of expertise from
Trieste to Guadalajara, Toronto to Shanghai, and an active
presence in 130 countries. We don’t just sell to global
markets: we are at home in them, are citizens of them.
We understand their distinct needs.
No matter where they are, and regardless of whether Deliver. Execute. Advance.
they are in the telecoms business or in industries espe- It is seldom a simple thing when two powerful companies
cially dependent on communications technology, our with long histories come together to form a new enter-
customers demand innovation relevant and responsive prise. yet that is exactly what we have done—for the
to their needs, with the right economics for their busi- benefit of our customers and our people. Now some two
nesses. years through the process of transformation, we under-
stand that 2011 must be a year of visible delivery.
IP Inside
The common thread running through all the markets we Around the world in emerging and emerged markets—
serve is people’s desire to connect. It is clear in the rapid and markets where you cannot tell the difference—
uptake of new devices and solutions—smartphones, Alcatel-Lucent is realizing its strategy. We are applying
smart cars, smart grids. As consumers, we are all excited our “three ‘I’s” to meet customers where they are, helping
by the emerging opportunities to manage and enjoy
our lives through technologies personalized to our
them achieve their goals for right now, and for the future
they envision.
interests and preferences.
Enabling these kinds of liberating innovations is IP tech-
nology, the ‘intelligence’ of the digital network. It cuts
across wireless and wireline, optics, applications and
enterprise communications. It is driving our customers’
growth by allowing them to offer new kinds of services
and achieve unprecedented efficiencies and simplifica-
tion within their networks. Recognizing this enormous
potential, Alcatel-Lucent today is a wholeheartedly IP-
focused company in a fully IP world.

In the Americas, and particularly in North America, our Relentless Innovation

Watch the video interview at:
www.alcatel-lucent.com/carter
customers are concentrated on the shift to 4G—the next
generation of wireless—and on developing smart, web-
based applications. In Asia-Pacific, they are looking to
take advantage of deep fiber-optic capabilities, engaging
in some of the world’s largest-scale fixed network proj-
ects while at the same time welcoming literally millions
of people onto their wireless networks.
From the world’s first transistor to the reinvention of
wireless with lightRadio™; from the launch of digital sub-
scriber line (DSL) technology to speed-boosting Phantom
Mode; from the science of the laser to boundary-pushing
100 Gigabit-per-second optical transmission technology,
we have always been—and remain—driven to innovate.

76 77
2010 AnnuAl report 2010 AnnuAl report
the strategy book

sTRATEGIC ovERvIEW

a high-Leverage strategy the three ‘i’s of our business:

internationalism, innovation and iP.
these are at the heart of everything we do.

P eople have written whole books about strategy,

but I think the most useful definition is a practi-
cal one. Strategy is knowing what you’re willing to give
up in order to get what you want.
At Alcatel-Lucent our strategy is centered on the High
Leverage Network™, which allows our customers to
deliver universal access and profitable applications
through a process of network evolution and operational
transformation. That strategy has guided our choices of
where to focus our efforts, how to package our offerings
and rationalize our portfolio.
Much like in Asia, European customers are seeking to get
full value out of multiple generations of networks and
capitalize on web-based applications. Given the rich
diversity of their markets, they also want specificity and
an appreciation of context: people on the ground who
speak the language, know the culture and understand
how technology fits into the bigger social and economic
picture of their societies. In the Middle East, the mobile
phone is becoming the communication tool of choice; the
same is true in Africa, a continent that has also doubled
its connectivity with the addition of major new subma-
rine cables.
With Bell Labs as our innovation engine, we not only
generate new knowledge and technologies, but more
importantly apply them to the real-world needs of our
customers. The High Leverage Network™ is a prime
example of this: the solution for a future in which people
will demand flexible, immediate access to all manner of
applications—with uncompromising expectations of secu-
rity and high-quality service.
We aim to meet our customers where these demands
converge, giving them the tools to move confidently into
the coming world of cloud services and virtualization.

strategy is knowing
what you’re willing
to give up in order to
get what you want.
sTEPHEN A. CARTER
CHIEF MARKETING, STRATEGy AND
COMMUNICATIONS OFFICER
Behind strategy is culture, a company’s unique strengths
and orientation. At Alcatel-Lucent, these might be called
the “three ‘I’s”: we are an inherently international orga-
nization, both in terms of our presence and our people;
we are obsessed with innovation; and we are convinced
that IP, the Internet Protocol, is not just the enabler of a
powerful product set but more crucially a leap forward
in capability and efficiency for every type of network.
From our perspective, the move to IP technology may be
as significant as the shift from transistors to semiconduc-
tors in computing.
Mirroring our Markets
Our Chief Executive Officer, Ben Verwaayen, is fond of
saying that talent has no passport and is not constrained
by one. This is also true of technology. Our customers’
operational reality is a global one in which worldwide
access to talent and technology solutions is a prerequisite.
Being international is in our DNA. We are headquartered
in Paris, France, with 20 strategic hubs of expertise from
Trieste to Guadalajara, Toronto to Shanghai, and an active
presence in 130 countries. We don’t just sell to global
markets: we are at home in them, are citizens of them.
We understand their distinct needs.
No matter where they are, and regardless of whether Deliver. Execute. Advance.
they are in the telecoms business or in industries espe- It is seldom a simple thing when two powerful companies
cially dependent on communications technology, our with long histories come together to form a new enter-
customers demand innovation relevant and responsive prise. yet that is exactly what we have done—for the
to their needs, with the right economics for their busi- benefit of our customers and our people. Now some two
nesses. years through the process of transformation, we under-
stand that 2011 must be a year of visible delivery.
IP Inside
The common thread running through all the markets we Around the world in emerging and emerged markets—
serve is people’s desire to connect. It is clear in the rapid and markets where you cannot tell the difference—
uptake of new devices and solutions—smartphones, Alcatel-Lucent is realizing its strategy. We are applying
smart cars, smart grids. As consumers, we are all excited our “three ‘I’s” to meet customers where they are, helping
by the emerging opportunities to manage and enjoy
our lives through technologies personalized to our
them achieve their goals for right now, and for the future
they envision.
interests and preferences.
Enabling these kinds of liberating innovations is IP tech-
nology, the ‘intelligence’ of the digital network. It cuts
across wireless and wireline, optics, applications and
enterprise communications. It is driving our customers’
growth by allowing them to offer new kinds of services
and achieve unprecedented efficiencies and simplifica-
tion within their networks. Recognizing this enormous
potential, Alcatel-Lucent today is a wholeheartedly IP-
focused company in a fully IP world.

In the Americas, and particularly in North America, our Relentless Innovation

Watch the video interview at:
www.alcatel-lucent.com/carter
customers are concentrated on the shift to 4G—the next
generation of wireless—and on developing smart, web-
based applications. In Asia-Pacific, they are looking to
take advantage of deep fiber-optic capabilities, engaging
in some of the world’s largest-scale fixed network proj-
ects while at the same time welcoming literally millions
of people onto their wireless networks.
From the world’s first transistor to the reinvention of
wireless with lightRadio™; from the launch of digital sub-
scriber line (DSL) technology to speed-boosting Phantom
Mode; from the science of the laser to boundary-pushing
100 Gigabit-per-second optical transmission technology,
we have always been—and remain—driven to innovate.

76 77
2010 AnnuAl report 2010 AnnuAl report
 intervieW With ben verWaayen, CHIEF ExECUTIVE OFFICER
the strategy book
innovating
at the eDge oF the market
Tim Burt: Alcatel-Lucent
finished 2010 on a high note.
How do you see the coming year
for Alcatel-Lucent?
Ben verwaayen: We are putting in place what
we need to go and deliver. We are transforming
the value we bring our customers. We continue
to shape an organization that is linked to them,
understands them and works with them shoul-
der to shoulder. We’ve revitalized our innova-
tion capability. Bell Labs is at the heart of this,
a unique benefit to our organization. Is this a
competitive market? you bet. And we’re able
to compete—on our own values, our own
strengths.
How far is the company along
its transformation journey?
We’ve made great progress. We’ve been trans-
lating the changes of the first few years—new
board, new management team, new strategy,
new corporate governance structure, new
focus—into passion in the organization. you
have to do that to win the hearts and the
minds of customers, to bring about financial
discipline, to renew your product portfolio. you
have to put yourself at the edge of where the
market is and where your technology can help
it develop further.
Is that where you are now?
We certainly have a clear picture of what’s
happening and what’s coming next. The market
is transforming very rapidly, with an explosion
of video. In the old world, you had three sizes
Tim Burt
Interviewer
tim burt is the former Media editor of the Financial times. He is now Managing
partner of StockWell Group, an international strategic communications firm.
78
2010 AnnuAl report
of screens and they all did different things:
your TV, your computer, your cellphone. Now
consumers are saying, “I want what’s on the big
screen on the small screen and vice versa.” We
are delivering that multi-screen experience,
building on innovations we had in the pipeline.
How heavily is Alcatel-Lucent
able to engage in that kind of R&D?
In 2008, we spent approximately 2.5 billion
euros on research and development. 75 per-
cent of that was to customize existing tech-
nologies. In 2010, we spent the same and
75 percent was on new technologies. That’s a
massive redirection of where we spend and
why. We will keep investing where we can
We have said we will
grow faster than
the market in 2011.
make a difference and cut costs where it makes
sense—getting rid of duplication, complexity.
2010 was a year of going from restoring order
to growing again. For 2011, we have said we will
grow faster than the market, with an adjusted
operating margin above 5 percent of sales.
Is the hard work done?
you’re never done. But we are building the
organization we need. We have started to exe-
cute on operational excellence. The reality is
that even a company running perfectly in
every market would still struggle today to keep
up—things are changing so quickly. Demand
keeps climbing. Deployments need to happen
faster. People are taking up new technologies
at a pace we’ve never seen before.
We’re moving at
a new speed—
what we call
‘the speed of ideas’.
so how do you deal with that?
Our customers are under pressure from their of a normal phone, a tablet 40 times. And there
customers…we have to respond by thinking are potentially two billion people out there not
like them. To deliver the kind of experience yet connected. So we have to do something.
they’ll remember and keep coming back for. I feel this company has a great opportunity to
We have a clear roadmap, and we have the make a contribution.
best team in the business: we’ve brought
together a unique set of people from the out- What’s important
side, from the inside, young talents, people to you personally going
from very different industries. With their ener- forward from here?
gy, we’re moving at a new speed—what we call I want to make sure our people are inspired
‘the speed of ideas.’ We want to have great and feel supported. We’ve asked them under
ideas and then execute them flawlessly, with
speed and a desire to make a difference. I think
sometimes very difficult circumstances to
carry out a massive transformation of the com-
lightRadio™ is an excellent example of this, a pany. I want them to see and feel the progress.
rethinking of wireless networks and how a I’m confident that in 2011 we will deliver what
30-year-old infrastructure has to change to we said we would deliver.
keep growing.
What are some of the big priorities
on the horizon?
We have to ‘green’ our portfolio. We started the
GreenTouch™ consortium as a way to achieve We are building
a breakthrough in network energy consump-
tion. We’re working with our competitors, with the organization we need.
customers and universities. We need to create
self-sustained systems. When you go to remote
We have a clear roadmap,
areas of the world, the question is what will be and have the best team
first: energy or communications? My answer is
it has to be communications, because that’s
in the business.
what provides the earning capacity to build
grids and other capabilities. Energy efficiency
is critical for the established market, too. A Watch the video interview at:
smartphone consumes 20 times the bandwidth www.alcatel-lucent.com/verwaayen
79
2010 AnnuAl report
 intervieW With ben verWaayen, CHIEF ExECUTIVE OFFICER
the strategy book
innovating
at the eDge oF the market
Tim Burt: Alcatel-Lucent
finished 2010 on a high note.
How do you see the coming year
for Alcatel-Lucent?
Ben verwaayen: We are putting in place what
we need to go and deliver. We are transforming
the value we bring our customers. We continue
to shape an organization that is linked to them,
understands them and works with them shoul-
der to shoulder. We’ve revitalized our innova-
tion capability. Bell Labs is at the heart of this,
a unique benefit to our organization. Is this a
competitive market? you bet. And we’re able
to compete—on our own values, our own
strengths.
How far is the company along
its transformation journey?
We’ve made great progress. We’ve been trans-
lating the changes of the first few years—new
board, new management team, new strategy,
new corporate governance structure, new
focus—into passion in the organization. you
have to do that to win the hearts and the
minds of customers, to bring about financial
discipline, to renew your product portfolio. you
have to put yourself at the edge of where the
market is and where your technology can help
it develop further.
Is that where you are now?
We certainly have a clear picture of what’s
happening and what’s coming next. The market
is transforming very rapidly, with an explosion
of video. In the old world, you had three sizes
Tim Burt
Interviewer
tim burt is the former Media editor of the Financial times. He is now Managing
partner of StockWell Group, an international strategic communications firm.
78
2010 AnnuAl report
of screens and they all did different things:
your TV, your computer, your cellphone. Now
consumers are saying, “I want what’s on the big
screen on the small screen and vice versa.” We
are delivering that multi-screen experience,
building on innovations we had in the pipeline.
How heavily is Alcatel-Lucent
able to engage in that kind of R&D?
In 2008, we spent approximately 2.5 billion
euros on research and development. 75 per-
cent of that was to customize existing tech-
nologies. In 2010, we spent the same and
75 percent was on new technologies. That’s a
massive redirection of where we spend and
why. We will keep investing where we can
We have said we will
grow faster than
the market in 2011.
make a difference and cut costs where it makes
sense—getting rid of duplication, complexity.
2010 was a year of going from restoring order
to growing again. For 2011, we have said we will
grow faster than the market, with an adjusted
operating margin above 5 percent of sales.
Is the hard work done?
you’re never done. But we are building the
organization we need. We have started to exe-
cute on operational excellence. The reality is
that even a company running perfectly in
every market would still struggle today to keep
up—things are changing so quickly. Demand
keeps climbing. Deployments need to happen
faster. People are taking up new technologies
at a pace we’ve never seen before.
We’re moving at
a new speed—
what we call
‘the speed of ideas’.
so how do you deal with that?
Our customers are under pressure from their of a normal phone, a tablet 40 times. And there
customers…we have to respond by thinking are potentially two billion people out there not
like them. To deliver the kind of experience yet connected. So we have to do something.
they’ll remember and keep coming back for. I feel this company has a great opportunity to
We have a clear roadmap, and we have the make a contribution.
best team in the business: we’ve brought
together a unique set of people from the out- What’s important
side, from the inside, young talents, people to you personally going
from very different industries. With their ener- forward from here?
gy, we’re moving at a new speed—what we call I want to make sure our people are inspired
‘the speed of ideas.’ We want to have great and feel supported. We’ve asked them under
ideas and then execute them flawlessly, with
speed and a desire to make a difference. I think
sometimes very difficult circumstances to
carry out a massive transformation of the com-
lightRadio™ is an excellent example of this, a pany. I want them to see and feel the progress.
rethinking of wireless networks and how a I’m confident that in 2011 we will deliver what
30-year-old infrastructure has to change to we said we would deliver.
keep growing.
What are some of the big priorities
on the horizon?
We have to ‘green’ our portfolio. We started the
GreenTouch™ consortium as a way to achieve We are building
a breakthrough in network energy consump-
tion. We’re working with our competitors, with the organization we need.
customers and universities. We need to create
self-sustained systems. When you go to remote
We have a clear roadmap,
areas of the world, the question is what will be and have the best team
first: energy or communications? My answer is
it has to be communications, because that’s
in the business.
what provides the earning capacity to build
grids and other capabilities. Energy efficiency
is critical for the established market, too. A Watch the video interview at:
smartphone consumes 20 times the bandwidth www.alcatel-lucent.com/verwaayen
79
2010 AnnuAl report
 INVESTOR RELATIONS
Internet site
www.alcatel-lucent.com
Contacts
By mail: Alcatel-Lucent
Investor Relations
3, avenue Octave Gréard
75007 Paris, France
By email: finance@alcatel-lucent.com
By phone:
+33 (0)800 354 354 (from Europe)
or +1 (908) 582-6173 (from USA)
Company fact sheet
Profile: Supplier of Telecommunications
equipment and related services
Index: CAC 40
Stock Symbol: ALU
ISIN Code: FR0000130007
Listing
Our shares are traded on
Eurolist by Euronext,
on SEAQ International in London, and
on the New york Stock Exchange
in the form of American Depository
Shares (ADS).
ALCATEL-LUCENT
2010 ANNUAL REPORT
Corporate Communications
3, avenue Octave Gréard
75007 Paris, France
Tel. +33 1 40 76 10 10
www.alcatel-lucent.com
Alcatel, Lucent, Alcatel-Lucent
and the Alcatel-Lucent logo
are trademarks of Alcatel-Lucent.
All other trademarks are the property
of their respective owners.
Copyright © 2011 Alcatel-Lucent.
All Rights Reserved.
Creation and layout:
Publicis Consultants I Verbe
Content:
Alcatel-Lucent
Editech
Ascribe Marketing Communications
Illustrations:
Stéphane Manel
Franck Teillard

Additional documentation
(available on website)
Annual Report on Form 20-F

80
2010 AnnuAl report
 INVESTOR RELATIONS
Internet site
www.alcatel-lucent.com
Contacts
By mail: Alcatel-Lucent
Investor Relations
3, avenue Octave Gréard
75007 Paris, France
By email: finance@alcatel-lucent.com
By phone:
+33 (0)800 354 354 (from Europe)
or +1 (908) 582-6173 (from USA)
Company fact sheet
Profile: Supplier of Telecommunications
equipment and related services
Index: CAC 40
Stock Symbol: ALU
ISIN Code: FR0000130007
Listing
Our shares are traded on
Eurolist by Euronext,
on SEAQ International in London, and
on the New york Stock Exchange
in the form of American Depository
Shares (ADS).
ALCATEL-LUCENT
2010 ANNUAL REPORT
Corporate Communications
3, avenue Octave Gréard
75007 Paris, France
Tel. +33 1 40 76 10 10
www.alcatel-lucent.com
Alcatel, Lucent, Alcatel-Lucent
and the Alcatel-Lucent logo
are trademarks of Alcatel-Lucent.
All other trademarks are the property
of their respective owners.
Copyright © 2011 Alcatel-Lucent.
All Rights Reserved.
Creation and layout:
Publicis Consultants I Verbe
Content:
Alcatel-Lucent
Editech
Ascribe Marketing Communications
Illustrations:
Stéphane Manel
Franck Teillard

Additional documentation
(available on website)
Annual Report on Form 20-F

80
2010 AnnuAl report
 alcatel-lucent 2010 annual report
2010
annual
report

AT THE SPEED OF IDEAS TM