Lucent to sell services division

Lucent Technologies has announced plans to sell its enterprise professional services division by the end of the year.

Lucent Technologies has announced plans to sell its enterprise professional services division by the end of the year.

James Kelleher, an analyst at New York-based Argus Research, said Lucent's decision is consistent with the company's restructuring plans

"This is just kind of a fraction of [Lucent]," Kelleher said of the services division. "It makes sense to just focus on the market they want to be in."

Richard Dean, an analyst at IDC, said the news should be no surprise, since Lucent has been clearly voicing such intentions since last year. "It's another step in the process for Lucent to refocus on its core business," he said.

Dean had doubts about the sale's revenue-earning potential. "I don't think they're going to get the kind of value out of it that they expect," he said.

The division provides network consulting, design and integration services to Lucent's blue chip customers.

"What we've been doing in the last year is focusing ourselves on our large service providers," because those customers are continuing to generate revenue for the company, said Lucent spokesman Bill Price. "Our top 30 customers make up 70% of our total revenues. You have to make decisions on what fits and what doesn't fit."

Price said the enterprise services group is a "strong business with a talented team".

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