Alcatel-Lucent CEO: We will remain in wireless, will have LTE products

Next week Alcatel-Lucent CEO Ben Verwaayen will unveil a plan that is geared to turn around the fortunes of the world’s largest telecommunications equipment maker – and wireless is expected to be part of that plan.
Despite pressure from investors to close up the wireless division of the business, Verwaayen said during a Thursday presentation in Paris that the company will continue with research and development of wireless products, according to Reuters.
“It is not true we are leaving mobile,” Verwaayen said, according to the report.
Since the company was formed in 2006 through the merger of Alcatel SA and Lucent Technologies Inc. it has posted seven straight quarters of losses. The company has suffered from internal clashes and stiff competition in the wireless infrastructure market.
For the third quarter, Alcatel-Lucent posted a net loss of $51 million. The company has also undergone a change in leadership. Verwaayen was hired in September to replace Patricia Russo. Pillippe Camus replaced Serge Tchuruk as chairman.
According to the Reuter’s report, Verwaayen said the company will continue with research and development despite the tough economic climate. He said the company will be ready with network products when 4G LTE is ready for deployment.
“Not doing innovation is like shooting yourself in the head,” Verwaayen said, according to Reuters. “We are not going to cut our lifeline to the future.”
On Dec. 12, Verwaayen will unveil the company’s strategic plans for moving forward. During the announcement of the company’s third quarter results, Verwaayen said the plan is intended to return the company to profitability.