Compagnie Générale d'Electricité

Alcatel SA

Company type	Public
Industry	Telecommunications, Industrial conglomerate
Predecessor	Compagnie Générale d’Électricité (CGE)
Founded	1970
Defunct	2006
Fate	Merged with Lucent Technologies to form Alcatel-Lucent
Headquarters	Mulhouse , France
Area served	Worldwide
Key people	Ambroise Roux (Chairman, 1970), Pierre Suard (Chairman of CGE), Serge Tchuruk (Chairman and CEO, 1995)
Products	Digital telephone switching systems, terrestrial and submarine transmission cables, satellite hardware, cellular network infrastructure, DSL access devices

Alcatel SA was a prominent French industrial conglomerate operating between 1963 and 2006. It originated from the Compagnie Générale d’Électricité (CGE), established in 1898 as a state-owned enterprise specializing in cable and telephone equipment. Over time, CGE broadened its scope to include sectors such as construction, shipbuilding, and energy. Within the telecommunications field, Alcatel was recognized as a key provider of digital telephone switching systems, terrestrial and submarine transmission cables, satellite hardware, cellular network infrastructure, and DSL access devices.

The name Alcatel initially stood for Société Alsacienne de Constructions Atomiques, de Télécommunications et d'Électronique and was founded in Mulhouse as a division of SACM, an engineering conglomerate. Between 1968 and 1970, it became part of Compagnie industrielle des télécommunications (CIT), CGE's telecommunications branch. Under François Mitterrand’s administration, CGE was nationalized in 1982 before being privatized again in 1987. The company was rebranded as Alcatel Alsthom in 1991 and later simplified to Alcatel in 1998 after divesting its Alstom division to concentrate exclusively on telecommunications.

In 2006, Alcatel purchased the American telecom firm Lucent Technologies for $13.4 billion, resulting in the creation of Alcatel-Lucent S.A. This entity was subsequently integrated into Nokia in 2016. The Alcatel brand persists through various subsidiaries including Alcatel Submarine Networks (telecommunications), Alcatel-Lucent Enterprise (software solutions), Alcatel Mobile (mobile devices), and Atlinks (fixed-line telephony).

Origins

• 1898 – French engineer Pierre Azaria founds Compagnie Générale d'Électricité (CGE).
• 1919 – Aaron Weil introduces the "Téléphone privé" (Private telephone system).
• 1925 – CGE merges with Compagnie Générale des Câbles de Lyon; Bell Telephone Laboratories is established.
• 1927 – The company adopts the name "Téléphonie Industrielle et Commerciale" (TELIC).
• 1928 – Alsthom is created from the merger of Société Alsacienne de Constructions Mécaniques and Compagnie Française Thomson-Houston.
• 1946 – CIT (Compagnie Industrielle de Téléphone) is set up within CGE.
• 1947 – ALSATEL is founded to boost sales efforts.
• 1952 – In the United States, ITT Corporation acquires Kellogg Switchboard and renames it ITT Kellogg.
• 1954 – TELIC takes over COFRATEL.
• 1960 – TELIC introduces Crossbar switching technology.
• 1965 – CGE acquires TELIC, integrating it as a subsidiary under CIT.

Formation of Alcatel

• 1970 – The establishment of Alcatel occurs through the merger of CIT and ENTE (a SACM division). Ambroise Roux assumes the role of CGE chairman.
• 1977 – Development of Alcatel’s first PBX featuring digital control is completed.
• 1980 – Launch of the Minitel videotex service.
• 1984 – Georges Pébereau becomes chairman of CGE; CGE absorbs Thompson’s telecom operations. Câbles de Lyon acquires Thompson Jeumont Cables and Kabelmetal.
• 1985 – CIT-Alcatel merges with Thompson’s telecommunications unit to form the new Alcatel entity.
• 1986 – ITT Corporation divests its international telecom and cable divisions to Alsthom, leading to the creation of Alcatel N.V., while ITT retains a 37% shareholding. Pierre Suard is appointed chairman of CGE.
• 1987 – CGE undergoes privatization; Alsthom secures the contract for Northern France’s TGV network.
• 1989 – CGE partners with British General Electric Company to create GEC Alsthom, expanding global sales efforts. CGEE-Alsthom rebrands as Cegelec.
• 1991 – CGE changes its name to Alcatel Alsthom; acquires Rockwell Technologies’ transmission division along with Italian telecom firm Telettra. Câbles de Lyon becomes Alcatel Cable and purchases AEG Kabel.
• 1992 – ITT sells its remaining shares in Alcatel N.V. for $3.6 billion; Alcatel Alsthom completes acquisition of AEG Kabel.
• 1993 – Acquires STC Submarine Systems from Nortel Networks.
• 1994 – Multiple manufacturing sites in the US and Mexico under Alcatel Network Systems receive the Shingo Prize for operational excellence.
• 1995 – Serge Tchuruk is appointed chairman and CEO; initiates restructuring focused on telecommunications equipment specialization.
• 1997 – The Raleigh facility of Alcatel Telecom earns IndustryWeek’s Best Plants award.
• 1998 – Split between Alcatel and Alsthom occurs; Alsthom GEC goes public as Alstom with Alcatel retaining a minority stake of 24%. Cegelec is sold to Alstom. Purchases DSC Communications for $4.4 billion alongside Packet Engines.
• 1999 – Acquisitions include Xylan, Assured Access, Internet Devices; increases holding in Thomson CSF to 25.3%, while reducing stake in Framatome to 8.6%.
• 2000 – Divests DSL modem operations to Thomson Multimedia; acquires Newbridge Networks, Genesys, Innovative Fibers; spins off cable division as Nexans.
• 2001 – Disposes stake in Alstom; reacquires full ownership of Alcatel Space from Thales, lowering Thales’ stake to just over 20%; sells Areva shares.
• 2002 – Purchases Astral Point Communications and Telera Corporation; gains controlling interest in Alcatel Shanghai Bell; sells microelectronics business to STMicroelectronics along with stakes in Thomson, Thales, Nexans.
• 2003 – Acquires iMagicTV and TiMetra Inc.; sells half ownership of Atlinks and optical business unit to Avanex.
• 2004 – Buys eDial Inc.; establishes joint ventures including a 45% stake in Alcatel Mobile Phones with TCL and a near-50% stake in Draka Comteq B.V. with Draka Holdings; completes acquisition of Spatial Wireless; offloads Avanex shares.
• 2005 – Sells its entire 45% interest in Alcatel Mobile Phones back to TCL.