Image via CrunchBaseThe most handy equipment maker of Telecom Industry, Alcatel-Lucent, are seeing no hope that the highly rising demand in the region of United States, where its most major operators invest, is going anywhere. Most of the cellphone operators in the North American region mostly have to keep up with their extraordinarily high demands leading to data overload driven, especially by streaming video, infer with the company. It was indicated by the reports of the company's first-quarter, that almost its entire financial status is largely determined by the sales in North America, which gave birth to the question for some investors, that whether Alcatel-Lucent has become more dependent on this particular region for growth, than it should be.
The V.P. of the company Tim Krause, who is also in charge of the company in the U.S., shared that the major operators, like AT&T and Verizon, are keeping up the company’s keep investment since they were themselves lacking the networks required to accommodate the large bandwidth caused directly be huge customer demand. He stated that "hiven the competitive landscape with AT&T and Verizon and the overall shortage of capacity, I would be shocked if they took their foot off the pedal in terms of investments," he said at an investor day held by Alcatel-Lucent on Wednesday. Krause, who also happens to be in charge of the relationship and deals of Alcatel-Lucent with AT&T, dodged the question asking him how long he actually sees this extensive demand of the U.S. supporting the company.
The other competitors in the market for the company include Sweden's Ericsson and China's Huawei, which are also witnessing their company’s first-quarter sales to be increased in North America to around 40% too. Some analysts even pointed out that 90% of the increase in the sales of Alcatel-Lucent has come exclusively from North America in this quarter, as they again raised the concern that this gives birth to a huge risk for the company and its future prospective.
The C.E.O. of the company, Ben Verwaayen, himself spoke on the matter this Wednesday, totally denying the criticism this matter was receiving regarding the company’s reliance on U.S. He claimed thoughtfully that "We are selling where there is demand. Would you want us to do otherwise?"
There is no doubt now, that the company is being fueled by the extravagant web surfers of United States, thus keeping up its share price, just in the beginning of this year, the shares of the company have raised to a maximum 100%.
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