Carrier business carries Alcatel through handset slump

France-based network maker Alcatel has warned that while handset sales were significantly down on last year, growth in the carrier business would make up for the deficit.

The group blamed the fall in handset sales on "excess inventory in distribution channels at the beginning of the year as well as a general market slowdown" in a statement issued yesterday. However, handsets only account for seven per cent of Alcatel's business. The telecoms infrastructure business, including carrier and optical networking, had a better year 2000 than expected, and Alcatel still expects to meet previously announced revenue targets for this year.