BACKGROUND

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Term Paper Title	BACKGROUND
# of Words	601
# of Pages (250 words per page double spaced)	2.4

BACKGROUND

     In 1996, AT&T decided to split into three different companies.  These new
companies were the new AT&T, NCR, and Lucent Technologies.  Lucent Technologies is
one of the leading designers, developers, and manufacturers of telecommunications
systems, software, and products.1  They are beginning to emerge as a Fortune 40
company.  Lucent Technologies builds local networks, business telephone systems, and
consumer telephones that access the global networks.2  Lucent Technologies was
launched with an initial public stock offering in April.3  AT&T owns an 82% share of the
company.4

KEY PERSONNEL
     Lucent technologies has 125,000 employees worldwide.  Approximately 82% of
its employees come from the United States and the other 18% come from foreign
countries.5  Lucent Technologies has offices in more than 90 countries, and Bell Labs has
offices in 13 countries.6
     The chairman and chief executive officer is Henry B. Schacht.  Schacht has been
on AT&T’s board of directors since 1981.  He has also held chairman and chief executive
officer positions at Cummings Engine Company, INC.7
     Lucent Technologies’ President and chief operating officer is Richard A. McGinn.
McGinn joined AT&T in 1978.  He has previously served as executive vice president
and chief executive officer of AT&T’s network group.  From 1994 to 1996, McGinn
served on the AT&T management executive committee.8

BUSINESS STRUCTURE
     Lucent Technologies is composed of four operating units.  These four units are:
Business Communication Systems, Consumer Products, Microelectronics Group, and
Network Systems.  These units are designed to work together to provide innovative and
cost-efficient solutions for customers.  Bell Laboratories supports each group.9
     Bell Laboratories is a research and development organization that is recognized
throughout the world for its achievements in science and technology.  Currently, Bell
Laboratories is focusing on developing:  Digital signal processor algorithms, Lightwave
communications (photonics), Networking, Silicon chips, Software, and Wireless
communications.10
     Business Communications Systems design, manufacture, install, and service
advanced voice and multimedia systems worldwide.11  Consumer Products design,
manufacture, sell, and lease communications products for consumers, small offices, and
home offices.  In 1995 in the United States, Consumer Products sold 31% of the ...

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