Alcatel Network Systems Inc. Gains Competitive Edge with Nynex Deal

Strategic Insights -

Alcatel Network Systems Inc. has strengthened its position in the digital cross connect (DCC) equipment market by securing a major deal with Nynex, a significant buyer in the industry. The company will supply DCCs, a crucial component of Synchronous Optical Networks (SONET), to Nynex's six-state service area in the Northeastern United States. This agreement supports Nynex's plan to enhance its network by deploying SONET, which enables faster and more efficient information transport through fiber optic lines.

Key Takeaways:

  • Alcatel Network Systems Inc. has secured a significant deal with Nynex to supply digital cross connect (DCC) equipment, marking a major expansion in its market position.
  • The DCCs will be used to support Nynex's advanced voice, data, and video services for residential and business customers in its six-state service area.
  • The purchase agreement is part of Nynex's plan to deploy Synchronous Optical Networks (SONET) for faster and more efficient information transport.
  • The traditional suppliers of Nynex's DCCs, AT&T Network Transmission Systems and DSC Communications, are fierce competitors of Alcatel Network Systems Inc.
  • Worldwide, Alcatel, AT&T, and NEC Corp. are the largest DCC suppliers, with Alcatel being the second-largest after AT&T.
  • In the US SONET market, AT&T is the market leader, followed by Alcatel Network Systems Inc.
  • Alcatel has also shipped its 1000 AX Asynchronous Transfer Mode (ATM) switching systems to Sprint Corp.

Statistics:

  • Multiple 1631 SXs and higher-capacity 1633 SXs were ordered by Nynex for strategic locations in Manhattan and Cambridge, Mass.
  • Nynex has six-state territory in the Northeastern United States where the DCCs will be installed.
  • The purchase agreement supports Nynex's network enhancement plan to deploy SONET.
  • The traditional suppliers of Nynex's DCCs, AT&T Network Transmission Systems and DSC Communications, have a significant market share.
  • Alcatel Network Systems Inc. has shipped 1000 AX ATM switching systems to Sprint Corp.

Sources:

  • Phillip Armstrong, senior analyst with market researcher Northern Business Information Inc.
  • Alcatel Network Systems Inc. press release regarding their agreement with Nynex
  • Telecom industry reports and market research studies, as cited by Phillip Armstrong.