The new global handset company jointly set up by TCL Communication Technology Holdings Limited ("TCL Communication"), the holding company of Huizhou TCL Mobile Communication Co., Ltd. ("TCL Mobile"), a leading mobile handset manufacturer in China, and Alcatel (Paris: CGEP.PA and NYSE: ALA), a worldwide leader in telecommunications network equipment, applications and services, officially started operations today. The new company is to be named as TCL & Alcatel Mobile Phones Limited ("TAMP").
Since the signing of the Joint Venture Subscription Agreement on 18 June, TCL Communication and Alcatel have obtained shareholder, board and regulatory approvals and finalized various operational agreements necessary for the formation of TAMP. Headquartered in Hong Kong, TAMP has an initial net asset value of approximately €100 million, with TCL Communication holding a 55% equity stake and Alcatel owning the remaining 45%.
Substantially all of the 600 employees of Alcatel mobile handset activities in France and in China have become the employees of TAMP.
TAMP's research and development teams are expected to be located in Colombes, France and Shanghai, China. It is envisaged that TCL Mobile and TAMP will cooperate in the development of next generation handset technologies through the sharing of R&D resources and in the distribution of each other's products through their respective sales and distribution networks.
Future Plans
TCL Mobile and Alcatel believe that TAMP will combine their respective strengths in the competitive mobile handset market with the objective to become the global mobile handset leader.
Some of the key elements of the future strategy of TAMP are:
- Expand market coverage: TCL Mobile and TAMP have complementary handset markets which cover China, Latin America, Europe and the rest of the world addressing major operators and distributors.
- Leverage the brand equity of Alcatel: TAMP has an exclusive license to use the Alcatel brand name for mobile handset sales and distribution.
- Leverage Low-Cost Manufacturing: TCL and TAMP will enter into various agreements to capture production synergies by combined purchasing and leveraging TCL Mobile's low-cost production base.
- Strengthen R&D Platform: R&D co-operation between TCL Mobile and TAMP is expected to optimize R&D resources of the two groups and increase the pace of product roll-outs.
