'But this is growing fast, first there has to be more applications, content available. Right now I think operators are still focused on improving their networks but most of them are already working with content providers,' Pourcines said.

He believes that content such as logos and ring tones continue to bring in revenues although he sees promise in other applications like instant messaging, video and music streaming, online gaming, and adult entertainment.

Alcatel earlier this year announced its merger with Lucent Technologies Inc. Shareholders of the two companies have already approved the companies' merger plans, clearing one of the last hurdles for the merger after the U.S. Federal Trade Commission approved the deal in June, and the European Commission gave its consent in July.

'We're just waiting for the US regulators, but we expect to have everything finalized by November this year,' Pourcines said. 'Lucent and Nortel feed our strategy to achieve economies of scale and be able to provide equipment and services at more competitive pricing, especially in emerging markets.'

Alcatel and Lucent reported combined 2005 revenues of $25 billion, according to financial results.