Alcatel-Lucent Deal Must Address Bell Labs Security Concerns

5:30 am on March 29, 2006 | Category: Business, Corporate, Regulation, Wireless Technology

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With a potential acquisition of US-based Lucent Technologies on the horizon, national security concerns have been raised about the Lucent-controlled Bell Labs, which are involved in potentially sensitive US government research.

The Bell Labs are integral to research and development in the US telecom industry, and the government understandably doesn’t want them falling into the hands of a foreign company like French-based Alcatel.

This probably won’t pose a threat to the deal’s chances of going through, but some special arrangements will almost certainly have to be made to ensure that the labs remain under control.

The latest reports indicate that the two companies have reached an understanding on this matter, and plan to transfer control of Bell Labs to an independent “proxy board,” consisting of Americans.

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    Edited by Jeremy Maddock