Seeing the dampening state of the mobile network business, Alcatel-Lucent’s new chief executive may do away with this segment that has ruined profitability for the company since the 2006 merger,  by exiting it.

With recession hampering the company’s remaining growth activities, CEO Ben Verwaayen could be tempted to dump the mobile business which currently has no prospect of significant orders before 2010 as operator clients rein in spending.

The company will unveil its strategic review on 12th December, giving investors an insight on, how to halt losses when the profit making carrier crumbles.

According to Bernstein Research analyst Pierre Ferragu, "The mobile business is too small, and Alcatel-Lucent will probably never make any money from this activity”.

Some feel Alcatel-Lucent should exit the mobile market and focus on the fixed story that is copper to fibre optics, software and integration. Where as, some believe the company should remain an integrated supplier of both fixed and mobile gear if it wants to remain a top-rank player. X

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Times of India