High-octane Octel, Buyout revs up Lucent's messaging drive

Lucent Technologies bought messaging systems company Octel Communications for $1.8 billion late last week, a move that fills the gaps in its messaging strategy.

Milpitas, Calif.-based Octel will become the Octel messaging division of Lucent, and Bob Cohn, founder and chief executive officer of Octel, will serve as president of the new unit.

"Lucent is looking at ways to support the expansion of its core business, and Octel has the capabilities to get us where we want to be in the messaging industry," said Bill O'Shea, president of Lucent's business communications systems unit. Both companies will maintain their existing messaging systems, including the unified systems that each has been developing separately, O'Shea said.

Until now, Lucent's messaging division has focused on the enterprise market, primarily selling its products, which are integrated with its own switches, to small and mid-sized businesses in the United States. Octel, on the other hand, has focused on large enterprises and - more importantly to Lucent - on the service provider market, where it has 140 carrier customers in 27 countries.

The acquisition gives Lucent access to those customers, particularly in the wireless business, where Octel launched a marketing initiative to attract wireless carriers earlier this year (Telephony, April 21, page 102).

Lucent's decision to buy Octel was likely driven by the time-to-market factor, said Travis Kennedy, director of wide area network research worldwide at The Aberdeen Group.

"The acquisition definitely raises the bar for competitors like Northern Telecom and Siemens," Kennedy said.

CTIA TAKES ON FBI The CTIA has petitioned the FCC to adopt a set of technical standards intended to enhance law enforcement's ability to conduct digital wiretaps that comply with the Communications Assistance for Law Enforcement Act. The association believes FBI proposals exceed the scope of the act.

PAC BELL OPENS INTERNET GATE Pacific Bell has opened a new Internet gateway in southern California for its ISP customers, who have been overwhelmed by growth in Internet usage.

NORTEL INTEGRATES 3 RIVERS 3 Rivers Telephone Cooperative of Montana has granted a $20 million contract to Northern Telecom to supply an integrated wireless solution that can provide both fixed and mobile services. Nortel will supply its DMS-100 and IS-95 equipment.