BBA Voka 2009 03 Testimonial Alcatel

Alcatel-Lucent OverviewMarch 2009

Ravi AILAWADHIVice President : Vertical & Global Accounts

All Rights Reserved © Alcatel-Lucent 20092 | Alcatel-Lucent Corporate Overview | February 2009

Alcatel-Lucent at a Glance

R&D PROFILE Budget: €2.4 billion Active Patents Held: More than 25,000 Patents Awarded in 2007: 3,000 Nobel Prizes Won: 6 600 experts in more than 100 worldwide

standards organizations.

ParisGlobal Headquarters

Ben VerwaayenChief Executive Officer

Worldwide Presence: More than 130 countries

Annual Revenues: €16.98 billion (2008) Employees: ~76,000 Employee Nationalities: More than 100


A Closer Look at Our Financials (2008)

Asia Pacific

Rest of the World

Europe

NorthAmeric

a

Carriers

Services

Enterprise

*Reflects prior organizational structure.

~30%

~16%

~19% ~35% ~10%

~20%

~70%

Revenue by Business Group*

Revenue by Region


The Markets We Serve

Service Providers

Enterprises

Selected Verticals


Carrier Products

We are the world leader in providing solutions to fixed, mobile and convergent service providers.

Developing end-to-end solutions that enable our customers to profitably deploy differentiating communications services to enrich the way people live, work and play.

Offer

#1 in broadband access, CDMA, WiMAX, terrestrial and submarine optical networking and triple play networks

Market Leadership

#2 in IP/MPLS Service Edge Routers in fast-growing markets

#3 in mobile infrastructureleadership position in 3G access, IPTV, real-time payment and subscriber data management


Benefits We Bring to Service Providers

We partner with customers to define and deploy customized solutions to deliver the world’s most advanced communications services.

Commitment to delivering high-quality solutions that fit seamlessly and reliably into customer networks.

Leader in triple-play with more experiencethan any other telecom player.

A software group with more than 2,000 software engineers to drive the convergence between the network and Web 2.0 services.

Our expertise in designing, building and managing increasingly complex networks helps customers deliver converged services across a variety of networks and devices—especially in the OSS and BSS space.

Our customer-focused global teams are locatedin every corner of the world.

You Are Here


Enterprise Products

We are helping dynamic enterprise and government customers worldwide interconnect their networks, people, processes and knowledge to make money and save money.

Unified communications and contact centers, IP telephony, IP address and performance management software, data networking and security solutions.

Offer

#1 in contact center software

Market Leadership

#2 in contact center agent positions

#1 in Western Europe enterprise telephony

#1 in IP address management softwareGartner’s

leadership quadrant for telephony, contact center and unified communications

100 million customer interactions managed every day by more than 3,300 enterprises through contact centers operated by our customers


Vertical Markets

ENERGYPUBLIC

SECTORTRANSPORTATI

ON

3 x Es :

1.Vast addressable market2. Good fit between our ‘offer’ and their ‘needs’ reliability not an option3. Business diversification for Alcatel-Lucent

Experts Experience Examples


Applications Software

We develop software that enriches the personal communications experience for end-users.

Adding value to existing systems and working on open platformsso that Service Providers and Enterprises can deploy applications for Customer Service, Home Management, Rich Communications, Media and Customer Profiles—ultimately driving value in their businesses through an enriched end-user experience.

Offer

90+Mobile Entertainment Deployments

Market Leadership

55+IPTV & TPSDA Deployments

190+Subscriber DataMgmt. Customers

210+Real-time Payment Customers


75+Managed Services Contracts Worldwide

Market Leadership

#1in IPTV and Triple-Play Networks

#1in Fixed Network Outsourcing

Leaderin IP Transformation Projects

LeaderOSS/BSS Integration Player

#2in Carrier Network Integration, Carrier Multi-vendor Network Maintenance

#2in Combined Fixed and Mobile Network Operations Services Globally

Services

We are a leading network integrator with more than 24,000 network experts providing professional services that encompass the entire network life cycle: Consult and Design, Integrate and Deploy, Operate and Maintain.

Enhancing value by designing, integrating, implementing and running complex projects in a changing environment.

Offer


The values of Alcatel-

Lucent are commitments

we make to ourselves, and

to our customers,

investors and communities.

Customers First

Innovation

Teamwork

Respect

Accountability

Our Values


Alcatel-Lucent India: About

One of the largest Regional Unit in ALU, present since 27 years in India

More than 25 offices/5000 employees across the country. Strong

technical presence with > 4K employees engaged in R&D

Engaged in full suite of corporate functions in India - R&D,

Manufacturing, Sales & Marketing, Customer Support, Services and

Operations

Strong local relationships with Regulator & Government bodies

Manufacturing with ITI for Switching, 2G, 3G & ADSL (Public Operators)

Joint Venture with C-DOT for WiMAX


Alcatel-Lucent India: Market Leadership

CDMA Undisputed #1 leader in CDMA

GSM/3GMulti-million lines in India sub-

continent#3 in GSM Market share

Transmission#1 market position (~60% MS)

Countrywide transmission & backbone

Submarine-based connectivity projects

Involved in 4 out of 5; ~80% market share

WiMAXC-DOT Alcatel joint venture

India’s first WiMAX Rev.e trial with Aircel; Ongoing with MTNL, BSNL

Fixed line segment+50% market share

Enterprise, Industry & Pub Sectors

Projects with Railways, Defense & Space, Banks, Hospitality,..

Research & DevelopmentBell Labs in Bangalore, Software

development centre in Gurgaon & Chennai


Our Major Customers in India sub-continent


India Statistics - 2008

Population of 1.1 Bn, over 50% less than 25 year old Indian Middle Class is 350Mn, more than the US population Over 14 Mn. enrolment for higher education every year

Fastest growing market – 8 Mn+ subs. added every month Subs. Base to grow from 330 Mn. to 500 Mn. by 2010 Telecom CapEx $40Bn over the next 5 Yrs Revenue of $26 Bn in 2007 to grow to $70Bn by 2012 Market Cap $100 Bn +

Consistent GDP growth of over 8-9% , now 6%?

Sensex peaked from 4,000 points to 20000 in last 5 years

and now at 9,000

$450 Bn infrastructure investment over the next 5 years


Carrier Market Size

INDIA Macro economic Situation and Key Facts impacting 2009

Business

New 2G operators and 3G licenses (likely Aug ’09) will drive GSM

growth

IP Transformations will pick up significantly as all GSM operators

embrace IP in core for 3G enablement

Outsourcing of network mgmt will continue to grow

Operators will push applications to combat subscriber churn. Working

on models where voice could be offered free

The market is big and growing, financial crisis has slowed projected

economic growth from 8-9% to 6-7%

2008 Market CAPEX: 5739 M$ 2011 Carrier Market CAPEX: 7457 M$

CAGR: 9.0 %


2007 2008 2009 2010 2011Transport - Urban and Main Line Rail

40 51 77 128 175

Transport - Highways, Airports, Ports

21 27 40 66 125

Energy - Utilities (Power) 50 61 92 153 200

Public Sector - Defense & Security 159 204 306 510 550

Public Sector - Government, Local Authorities

83 106 159 265 300

€ 353 € 449 € 673 € 1,122 € 1,350

Segment 2008 2009 2010 2011 2012

Defense & Security 10 25 55 70 90

Railw ays( Mainline+ Urban Rail) 3 8 16 25 38

Tranport Highw ays+ Airports+ Ports 4 6 10 15 25

Energy - Utilities(Pow er) 0 4 15 26 40

Government & Real Estate 3 7 10 15 25

402150

159

83

512761

204

106

774092

306

159

12866

153

510

265

175

125

200

550

300

253

175

267

600

325

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2007 2008 2009 2010 2011 2012

Public Sector -Government, LocalAuthorities

Public Sector -Defense & Security

Energy - Utilities(Power)

Transport - Highways,Airports, Ports

Transport - Urban andMain Line Rail

IPS – TAM (Segment wise) – Y2007 - Y2012

449 Mn

673 Mn

1122 Mn

1350 Mn

1620 Mn* All Figures in Euro; Information based on Historical data and ALU market analysis

353 Mn

Tender based procurement in most sectors, long sales cycle Fragmented market with 3 dominant equipment vendors Majority business through channel partners/ System Integrators (SI)


India Investment 1/2

•Why invest in India ? •Infrastructural transformation

- Large Market size

•Under served middle class - Growing market and purchasing capacity of consumer

•Challenges : - Price sensitive market

•Business Obstacles•Infrastructure still under development : Transport, Energy,

Real Estate

•Inadequacy on Patent Protection laws , but improving

•Complex tax structure but improving

•Lack of transparent public dealing


India Investment 2/2

•Positive aspects •Stable political democracy since indepedence

•Strong legal & regulatory system

•Business done in English medium

•Comfortable foreign reserves

•Strong Banking sector with good monetary regulation and policy of RBI

•Low cost and highly skilled young manpower attracting MNC investment

•Cultural differences•Large distances apart , yet human on both sides

- Only business interest rules


Thank you

www.alcatel-lucent.com

BBA Voka 2009 03 Testimonial Alcatel

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