Summary
1. There seems to be no evidence of an actual contract between Alcatel-Lucent and Verizon Wireless for packet core technology. 2. In fact, apparently, Verizon has so far not shown any inclination to move away from Starent. 3. The idea that there would be an advantage that Alcatel-Lucent would “be applying networking lessons it has learned in the wired network triple-play business” – in order to provide packet core technology – is a big stretch.
Analysis
Certainly, the “ability to interwork services across wireless and wireline networks,” is ever more important. However, as much as Alcatel would like to link its “wired network triple-play business” directly to potential wireless business, the notion that “next- generation wireless architecture is [increasingly] looking more like wireline” – smacks of marketing hype.
After all this time, what some industry observers still do not get is even if Alcatel-Lucent did have a contract with Verizon Wireless for packet core technology, it is not a sure thing the supplier would ever get any revenue. When it comes to major carriers, it should be well known by now that the sales process only just begins after an agreement is reached.
Despite Alcatel-Lucent’s problems, it can still have a powerful influence on the thinking of certain prominent analysts. But there seems to be hardly any reason right now to believe that Starent “does not survive into the next generation of technology.” The people disagreeing in the source article are correct. “At Verizon, ‘Alcatel-Lucent is "likely to focus on the LTE, IMS, and EPC mobility elements,’ rather than the packet gateway.” In addition, Starent probably does not have to watch its back with any other competitors either.
