In order to secure its financing deal, Alcatel-Lucent (ALU) agreed to provide a rare glimpse...

|By:, SA News Editor

In order to secure its financing deal, Alcatel-Lucent (ALU) agreed to provide a rare glimpse into the margins of its business units. Some of the numbers aren't pretty: the terrestrial optical unit sports a gross margin of just 17%, and the wireline access unit (e.g. DSL and FTTH gear) a margin of 22%. Alcatel's services GM is also at 22%, well below that of Cisco and other peers. The IP division, which grew 30% Y/Y in Q3, had a healthy GM of 49%. Alcatel also provided detailed market share data on page 13 of its lenders presentation (.pdf).