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Alcatel vows to stay out of telecom gear price war, signs Intel deal


By Leila Abboud BARCELONA (Reuters) – Alcatel-Lucent said it would stay out of a brewing price war in the telecom equipment market and set itself apart with better service and new products, including those from a new partnership announced on Sunday with Intel Corp. Chief Executive Michel Combes said Alcatel-Lucent wanted to gain market share but not at any cost, as it entered the second year of a three-year turnaround aimed at restoring regular profits and cutting 1 billion euros of costs. Analysts predicted that competition could intensify this year among telecom equipment vendors after Nokias NSN unit forecast lower operating margins as it tries to rebuild revenues lost after a bout of restructuring. To that end, Combes unveiled a partnership with chip maker Intel, under which the two will share the costs of research and development on cloud computing and security. Mobile chip maker Qualcomm took a undisclosed stake in Alcatel in July 2013 as part of a research partnership on so-called small cells, which are small mobile antennas to help operators cover urban areas.

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