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Lucent technologies

Lucent Technologies


In 1996, AT&T decided to split into three different companies. These

new companies were the new AT&T, NCR, and Lucent Technologies. Lucent

Technologies is one of the leading designers, developers, and manufacturers of

telecommunications systems, software, and products.1 They are beginning to

emerge as a Fortune 40 company. Lucent Technologies builds local networks,

business telephone systems, and consumer telephones that access the global

networks.2 Lucent Technologies was launched with an initial public stock

offering in April.3 AT&T owns an 82% share of the company.4


Lucent technologies has 125,000 employees worldwide. Approximately 82%

of its employees come from the United States and the other 18% come from foreign

countries.5 Lucent Technologies has offices in more than 90 countries, and Bell

Labs has offices in 13 countries.6

The chairman and chief executive officer is Henry B. Schacht. Schacht

has been on AT&T's board of directors since 1981. He has also held chairman and

chief executive officer positions at Cummings Engine Company, INC.7

Lucent Technologies' President and chief operating officer is Richard A.

McGinn. McGinn joined AT&T in 1978. He has previously served as executive vice

president and chief executive officer of AT&T's network group. From 1994 to

1996, McGinn served on the AT&T management executive committee.8


Lucent Technologies is composed of four operating units. These four

units are: Business Communication Systems, Consumer Products, Microelectronics

Group, and Network Systems. These units are designed to work together to

provide innovative and cost-efficient solutions for customers. Bell

Laboratories supports each group.9

Bell Laboratories is a research and development organization that is

recognized throughout the world for its achievements in science and technology.

Currently, Bell Laboratories is focusing on developing: Digital signal

processor algorithms, Lightwave communications (photonics), Networking, Silicon

chips, Software, and Wireless communications.10

Business Communications Systems design, manufacture, install, and

service advanced voice and multimedia systems worldwide.11 Consumer Products

design, manufacture, sell, and lease communications products for consumers,

small offices, and home offices. In 1995 in the United States, Consumer

Products sold 31% of the corded phones, 28% of the cordless phones, and 35% of

answering machines.12 The Microelectronics Group makes integrated circuits,

power systems, and optoelectronic components for Lucent Technologies.13 The

largest unit of Lucent Technologies is the Network Systems. The Network Systems

designs, develops, and manufactures networking systems and software for

telecommunications providers, wireless communications is growing at an annual

rate of 33 percent.14


The worldwide demand for communications systems is booming. Lucent

Technologies is predicting a 10% annual growth for the communications industry.

The business is pursuing growth opportunities around the world and is trying to

build on Bell Laboratories established global relationships with its key

customers. 15

Much emphasis for advancement is being put on the areas of Wireless

communications, Networking software, and multimedia convergence. With the

increasingly mobile society, Lucent Technologies feels that there will be an

increasing demand for wireless communications. The more sophisticated

technology becomes, the greater the demand for smarter networks. One of the

world's largest producers of networking software is Lucent Technologies.

Multimedia devices deal with all kinds of communications. Lucent Technologies

is trying to develop innovations on multimedia that the customers want.16


The company's name, Lucent Technologies, was thought of after many

interviews with customers and other stakeholders. Lucent means, "Marked with

clarity, or glowing with light". Lucent Technologies logo is supposed to be a

bold, red, hand-drawn innovation ring.17 The company's slogan is, "We make the

things that make communications work."


-DSC Communications

-General Electric









-U.S. Robotics18


1.) AT&T's 1995 Annual Report

2.) Lucent Technologies fact booklet

3.) America on line


Background - page 1

Key personnel - page 1

Business Structure - page 2

Bell Laboratories - page 2

Business Strategies - page 3

Advertising Strategies - page 3

List Of Competitors - page 4

Bibliography - page 5

Source: Essay UK -

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