Paris-based Alcatel Alsthom SA has decided to disband its Alcatel Radio Space and Defence product group and reorganise it into three separate units. The new structure, which took effect on March 1, will comprise Alcatel Mobile Communications, Alcatel Radio Transmission Systems, and Alcatel Space and Defence. The Mobile Communications Group will be responsible for everything from fixed networks using cellular technology, to radio systems, Groupe Speciale Mobile terminals, Private Mobile Radio and Digital European Cordless Telephone. It will be directly responsible for the corresponding activities in Alcatel companies in Belgium, France, Germany, Italy and Spain. The Radio Transmission Systems group will cover all microwave and earth station activities and will also assume responsibility for corresponding activities in France, Germany, Italy, North America and Spain. The Space and Defence group will assume responsibility for Alcatel’s activities in space communications and observation systems, scientific satellites, navaids and defence communication systems. It will co-ordinate the corresponding activities of Alcatel subsidiaries in Belgium, Denmark, France, Germany, Italy, Norway, Spain, Switzerland and Taiwan. The company says that the reorganisation has two specific aims: to ensure closer liaison between its industrial and commercial units within each grouping, with a view to responding better to market requirements; and to reflect the growing importance of its mobile coms interests. There was nothing wrong with the Alcatel Radio Space and Defence group, says a spokesman, it’s just that it wasn’t possible to react as quickly under the old system – particularly in the mobile arena. The company denied that the move was a cost-saving exercise in reaction to January’s announcement that earnings could drop this year. Instead, Alcatel stressed that it was chiefly an organisational matter, saying that the new groups will not have separate headquarters, that no personnel or units are to be divested, and that the units will not become separate profit centres.
