BUSINESSWEEK ONLINE : JUNE 26, 2000 ISSUE
INFORMATION TECHNOLOGY Why Lucent Is Struggling Lucent Technologies is the largest player in the $200 billion global communications-equipment business. It has strong positions in existing sectors but faces challenges in the markets of the future. OPTICAL SYSTEMS Lucent is No. 2 with about 25% of the $16.1 billion market. Now it's in danger of losing ground. Earlier this year, it stumbled badly by not having a product in the fast-growing segment for high-speed switches. So Lucent is paying big bucks to get the latest in optical technology, including $4.5 billion for Chromatis in May. It's also doubling optical production capacity each quarter. DATA NETWORKING Lucent has the largest slice of the $25 billion market for data equipment for communications carriers. That's because it sells a lot of old data technology. It has virtually no presence in high-speed Internet routers, the most important market of the future. So Lucent is reselling a Net router from a small company called Spring Tide. WIRELESS INFRASTRUCTURE Lucent has been well positioned, with 22% of the $21 billion global market, second only to Ericsson's 28% share. Competition is heating up, though, to supply phone companies with the next generation of wireless equipment that will let mobile phone users tap the Net. Ericsson, in particular, has a broader portfolio of cutting-edge wireless technology. DATA: CIBC WORLD MARKETS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS Can Rich McGinn Revive Lucent? TABLE: Why Lucent Is Struggling CHART: Lucent Stock Takes a Hit ``Good Old-Fashioned Straight Talk'' from the New CFO INTERACT E-Mail to Business Week Online

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