For a company that had achieved 89 percent growth in 1998-99, business was dull last year. This forced it to look beyond its traditional switching systems business. Alcatel received orders for 2,13,000 lines from DoT and 54, 500 from MTNL.

It was also a year of restructuring and reorientation. It changed its name from Alacatel Modi Network Systems to Alcatel Network Systems. Then, it restructured itself along the lines of its international operations. All its divisions were brought under one cover. The company added two new divisions, carrier and Internet division and network application division, to its existing divisions.

The company activated a number of Internet related projects. Its first major contract for the carrier and Internetworking division came from MNTL for Internet traffic handling equipment. Besides, it is now developing Intelligent Network-oriented software for customers outside the company. Positioning itself as a convergence company and showing an inclination towards change, it is now looking for strategic partnerships with carriers and operators who promise to grow big when the convergence market opens up in India. It is also looking for third party integrators for providing first-line support to ISPs who go for Alcatel solutions. It has not been much successful in the private operator market. Besides, it faces serious competition from smarter companies like Lucent, Nortel, and Cisco.

As a world leader in DSL, Alcatel can look forward to a bright future in India as the DSL market is beginning to open up in India.