Alcatel-Lucent, the French-American telecommunications equipment maker, reported a third-quarter loss of $373 million today. To help the bottom line, the company plans to layoff another 4,000 employees beyond the February announcement of 12,500 layoffs. This amounts to a 20% reduction in payroll. It is hoped this move will save the company an additional $578 million by 2009.

CEO Patricia Russo, the architect of the company’s $2.45 billion cost-cutting plans, denies reports that the board of directors is unhappy with her future plans for Alcatel-Lucent. Russo has lobbied for a slimmed down management team, a more streamlined core carrier business and a focus on higher-margin businesses.

“Volumes we are seeing are not what we expected,” Russo said in a conference call. “These are difficult but necessary decisions, and we will manage these reductions with care.”

Chief Financial Officer Jean-Pascal Beaufret said he will leave the company “in coming weeks.” He will be replaced by Hubert De Pesquidoux, previously CFO of Alcatel North America.

MobileCrunch reported earlier this month that Ericsson’s 3rd Quarter Profits (were) down 36%. Ericsson has 45% of the telecommunication equipment market and blames lower profits on a slowdown in equipment investment by mobile phone providers. This ripple is now being reported by smaller companies like Alcatel-Lucent.

The third-quarter loss of 258 million euros was slightly larger than analysts’ expectations, and contrasts to a pro forma net profit of 532 million euros a year ago. Sales in the quarter slumped 11 percent to 4.35 billion euros ($6.27 billion), hurt by lower investments in U.S. wireless networks.

Overall revenues for the year are expected to be flat, but shares of Alcatel-Lucent rose 1.4 percent to 6.72 euros ($9.58) in Paris after the third-quarter news came out. Cheuvreux analyst Remi Thomas doesn’t think the company’s plans go far enough to make it profitable again. He believes revenue is so short of expectation that Alcatel-Lucent needs to save an addition 1 billion euros ($1.44 billion). This would require the company to cut an extra 10,000 jobs.

Alcatel-Lucent

Myxer, a mobile content delivery company, announced that it has reached over 3 million users, making it one of the largest distributors of mobile content. In April of this year Myxer reached 1 million users and has tripled that number in less than six months. If growth continues at this pace, within ten years aliens in a galaxy far, far away will be downloading wallpaper and ringtones from Myxer.

Currently, more than 7 million pieces if mobile content are downloaded per month, at a rate of roughly 3 downloads per second. Myxer offers over 150,000 free ad-supported ringtones, wallpapers and videos. Users can make their own ringtones, videos and wallpaper from music and files a customer already owns.

“We think that reaching this milestone so quickly is a statement about how easy our platform and mobile content site are to use, and is also a clear confirmation of the growing demand for mobile content in general,” said Myk Willis, founder and chief technology officer of Myxer. “Our continued growth will be fueled by our aggressive recruitment of content partners, user adoption of new content types like video and over-the-air song downloads, and the vast international opportunity we are just beginning to tap into.”

Myxer

Rumors about Google jumping into the phone business picked up again today with the Wall Street Journal reporting that Google phones will be available by mid-2008. MobileCrunch reported last month (Google Rumors: GPay and GPhone) that Google powered phones may be in the works. While the company is unwilling to comment at this time, the Wall Street Journal thinks that an announcement is coming within the next two weeks.

There is compelling evidence to suggest that Google is moving into the phone business. Services like Google Maps, YouTube and Gmail are perfect applications for mobile devices, so why not offer an all Google package? The company has increased its media reach over the last few years to include online video, television, radio and print advertising. An inexpensive handset that can deliver multiple forms of media is a good fit with Google’s past acquisitions. If it can make a cheap phone call, so much the better.

And finally, Google is a major bidder in the upcoming sale of the 700 MHz spectrum by the F.C.C. This frequency his highly prized by mobile phone providers for its ability to more easily penetrate building walls than current frequencies.

We’ll have to sit back and wait for Google to make an announcement. In the mean time it will be fun to speculate on how a Google phone will be all things to all people. I can see a phone so cheap people are paid money to take one, all applications are free, and the battery is replaced by a tiny fusion reactor.

NBC Universal has hired SinglePoint, a wireless messaging service, to launch one of the biggest mobile marketing initiative ever conducted by a media company. SinglePoint will manage and execute multiple participation media campaigns such as mobile voting, sweepstakes, contests, and mobile text news alerts. By outbidding its competitors, SinglePoint has won the largest Interactive Television (iTV) contract of its kind in the mobile marketing arena.

SinglePoint will be developing and managing large-scale, cross carrier iTV messaging events for multiple properties across NBC Universal including NBC, CNBC, MSNBC, Bravo, Telemundo, USA, NBC Sports, NBC News, iVillage and venue-related activities for Universal theme parks.

“In today’s competitive TV environment, we constantly evaluate how new technologies can better engage viewers and, ultimately, build stronger relationships with them,” said Jon Dakss, Vice President of Technology Product Development for NBC Universal. “SinglePoint stands apart in the increasingly critical mobile segment thanks to their ability to manage the entire participation media process - from connectivity to carrier relations to client services. Working with SinglePoint will allow us to strengthen our market leadership, as well as win and maintain the loyalty of our viewers.”

“There is no question that the wireless industry has given new meaning to participation media by adding entertainment, social and economic value to some of today’s most popular TV programs,” said Rich Begert, President and CEO of SinglePoint. “We can not express enough how extremely pleased we are to work with NBC Universal and drive the mobile component of their leading franchises. Our tools empower customers to drive growth, connect to end-users and enhance viewing experiences. We expect this strategic partnership will set a new bar for participation media in the U.S.”

For decades television viewing has been criticized as being a totally passive activity that at the very least leads to lazy thinking. I have always thought that it isn’t if you watch T.V. but what you watch and how you watch it that is important. A service like the one SinglePoint is providing for NBC will make viewers feel like they are part of the show, which has the potential for generating more viewer loyalty. By actively engaging with content, viewers’ minds will be more engaged and stimulated then if they watch the content without an outlet for expressing an opinion.

SinglePoint
NBC Universal

Verizon Communications announced today that its quarterly revenue rose due to strong wireless subscription growth. Verizon Wireless, which Verizon Communications owns with Vodafone, added 1.8 million net retail customers in the quarter, giving the company 63.7 million subscribers.

“It’s a story of tremendous strength in wireless and continued deterioration in wire line,” said Sanford C. Bernstein analyst Craig Moffett.

Even though wireless subscription sales are strong, Verizon profits are down due to merger-related costs and other items. Verizon repurchased nearly $800 million of its shares in the third-quarter and the company said it will increase its 2007 share buyback target by 25 percent to $2.5 billion. Verizon’s third-quarter net income was $1.27 billion, or 44 cents per share, compared with $1.92 billion, or 66 cents a share, a year earlier.

“It was a very solid quarter, not spectacular,” said analyst Chris King of Stifel Nicolaus, who was not impressed with the performance of Verizon’s DSL service, which offers high speed Internet over traditional phone lines. “If there was one weak spot in the numbers that’s on the DSL side,” but King added that was “a relatively low profit margin business for them so it’s something I’m not overly concerned with. FiOS and wireless are far more important.”

Verizon is investing in its FiOS high-speed fiber optic service, which allows the company to deliver video for television sets. Verizon wants to provide subscribers with a triple-play all in one package of video, phone and Internet. This will allow Verizon to compete with cable operators like Comcast who offer video, phone and Internet packages.

Verizon Communications

Each week MobileCrunchArcade compiles the biggest news from the world of mobile gaming.

Verizon Wireless and SkyZone Entertainment announced a partnership this week to provide South Koreans greater access to SkyZone’s mobile gaming archive. SkyZone offers a full lineup of richly textured 3D graphics and games that feature multiplayer connectivity between PC and mobile platforms. Popular titles include Duke Nukem Mobile, Extreme Hangman, Snake Mayhem 2, Rocky Boxing and the Scoop Twist franchise. I wonder if the State Department is watching this development. If North Korea gets Duke Nukem the whole region could destabilize. Japan may be forced to counter with Godzilla H-bomb.

Glu, a mobile game publisher, announced its lineup for the first half of 2008 at the CTIA Wireless I.T. & Entertainment convention this week. Titles include, Shadowalker, Space Monkey, Pooin’ Panda, Frantic Factory, Get Cookin’, CrossPix by Glu, Super Slam Ping Pong!, Vegas Hustler, and Brain Genius 2. It looks like there’s a lot of thumb thumping action coming next year that will keep you glued to your mobile phone.

Congratulations go out to Stephen Hetrick of Tampa Florida. His character design won Konami Digital Entertainment’s design contest for the Contra 4 mobile game. To celebrate the title’s 20th anniversary, Mr. Hetrick’s character was judged to capture the story, game play, look and feel of Contra over all other entries. His character will be featured in the upcoming mobile game, and Mr. Hetrick will receive a game credit and a Contra 20th Anniversary designer’s award. Be careful where you travel with that award Stephen. Daniel Ortega is in charge of Nicaragua again and he isn’t too fond of Contras.

That is this week’s MobileCrunch Arcade game roundup. Remember, exercise those thumbs, recharge the battery and never take your eyes off the screen.

Rogers, a Canadian wireless service provider, announced today it has begun field trials of its 7.2 Mbps wireless data service in the Brampton and Montreal areas. The trials utilize 3.5 generation wireless HSPA/UMTS technology, allowing a peak download speed of 7.2 Mbps, the fastest speed in Canada.

“The consumer appetite for mobile applications is undeniable in Canada and around the world,” said Rob Bruce, President, Rogers Wireless.” The data speeds achieved in this trial will enable Rogers to meet our customers’ needs with the most advanced, innovative services today and in the future.”

This test puts Rogers among the top one percent of GMS carriers worldwide that support 7.2 Mbps speeds. This trial is the next generation of Roger’s GMS network, and represents a significant investment in technology. Rogers will have spent around $500 million over the past two years upgrading its network.

“Rogers is continuing to trial, launch and deliver innovative and reliable next generation wireless telecommunications services to Canadians,” says industry analyst, Mark Goldberg, of Mark H. Goldberg and Associates Inc. “The availability of 3.5G mobile services in our own backyard keeps Canada at the front of the world stage with respect to telecommunications services and applications.”

Rogers

Emdigo has partnered with INgrooves to launch the INgrooves Music Screensaver this November. The screensavers will be available on Verizon and Alltel Wireless for $2.99 per download. The application animates artists in 3D with the artists’ music when the phone is flipped open. Top artists Tila Tequila, Too Short and B Legit are part of the initial offering.

“By combining our catalogue of music artists and images with Emdigo’s proprietary mobile content development technology, we are able to bring music fans a completely new and unique type of mobile phone content featuring our artists and animated graphics,” said Adam Hiles, INgrooves COO. “We¹re proud to be leading off our partnership offering with Tila Tequila, Too Short and B Legit as our initial featured artists.”

The INgrooves Music Screensaver includes a catalog of artists by genre, 15 second audio clips of featured songs, photos of artists, album cover artwork and interactive 3D animated avatars of the top 10 artists per genre that can be saved as screensavers.

“Emdigo¹s partnership with INgrooves allows us to bring a new and entertaining visual element to music content for mobile,” said Steve Gleitsmann, president of Emdigo. “Our animated 3D graphics paired with music from INgrooves is merely the beginning of our plans to expand our efforts in the music space. Through partnerships like this one with
INgrooves, Emdigo continues to strive towards improving the content available on mobile today.”

Emdigo
INgrooves

As fires blaze across southern California forcing hundreds of thousands to flee, the Wireless foundation and American Red Cross announced that most American wireless subscribers can make a charitable donation to the Red Cross Disaster relief Fund through a program called Text 2Help. Subscribers of participating wireless carriers can donate $5 to relief efforts simply by text messaging keyword “GIVE” to “2HELP” (24357). The donations will appear on customers’ monthly bills or be debited from prepaid account balances.

Text 2HELP was first used to raise funds for Hurricane Katrina relief. The program is initiated whenever a natural disaster occurs and an American Red Cross assessment determines its relief effort will require a substantial level of support. Text 2HELP will be activated for 60 days so if you are planning to donate there is plenty of time. The Red Cross provides those in need with shelter, food, water, clean up and comfort kits, and medical and mental health services.

“The wildfires in southern California have caused tragic loss of life, serious injuries, and enormous damage, and now Americans wanting to lend a hand to the American Red Cross Disaster Relief Fund can do that through Text 2HELP™,” said Steve Largent, President and CEO of CTIA-The Wireless Association and President of The Wireless Foundation, the charitable organization coordinating Text 2HELP™. “Through a simple text message, Americans can send a donation to the American Red Cross that will be put to good use in providing those in need with invaluable support during their time of crisis.”

Wireless carriers participating in Text 2HELP™ include AT&T Mobility, Alltel, Boost Mobile, Dobson Communications Corporation, Sprint, T-Mobile and Verizon Wireless. VeriSign is powering the intelligent messaging infrastructure to enable the short message service.

American Red Cross

Cellufun announced today its Hellofun celebration. During Hellofun, users can decorate their homepages, dress up their avatars in costumes and pass out virtual tricks and treats. By visiting other homepages, users collect virtual treats or tricks while watching their own homepage to give as good as they take. If someone is stingy in giving out treats, the word will get out to the rest of the community and that person will be given tricks instead of treats when going from homepage to homepage. And it isn’t easy to be generous. Treats have to be purchased with Cellupoints.

At midnight on October 31st, prizes will be awarded to the most generous players, and to those accumulating the most treats and tricks. Cellufun will also have two scavenger hunts. The first person to give a treat to every costume type and the first to go online at every decorative banner type will win a surprise. Trophies will be awarded for each scavenger winner and to the person giving out the most treats.

“With Hellofun, we wanted to allow our mobile community to celebrate the
holidays together and capture that sense of wonder you felt as a kid when
you got that special candy”, said Arthur Goikhman, Cellufun’s CEO. “So we
created a whole concept of visiting each other’s mobile profiles, standing
in line and trick-or-treating, creating suspense about what you’re actually
going to get. Costumes matter, too – a poorly matching costume might get a
rock, or a trick; a well conceived one, a chocolate.”

Cellufun