Alcatel, LAN Systems clash over distribution

Alcatel, LAN Systems clash over distribution

Networking vendor, Alcatel, claims that distributor, LAN Systems, is no longer authorised to sell its products and has cut off supply to the Sydney-based company.

Alcatel national channel manager, Vaughan Webster, said that as of the start of 2004, LAN Systems was no longer an official Alcatel distributor. He said the two had been winding back their relationship for considerably longer.

LAN Systems, however, refuses to be dumped by the networking vendor.

"We are still an authorised Alcatel distributor,” LAN Systems director, Nick Verykios, said. “Neither LAN Systems or our parent company have received anything to the contrary.”

Verykios said that the parent company of LAN Systems and the head office of Alcatel were discussing ways to end the impasse.

“We are currently in negotiations over a series of transactions that need to be rectified,” he said.

Verykios hopes that these negotiations can also assist in returning the usual flow of Alcatel supplies to the distributor.

LAN Systems had some stock remaining to continue trading from the start of the year, Verykios said, but had since run out of some key items. While the distributor’s customers had shown some understanding, Verykios said, he had no doubts that some resellers had been forced into buying some Alcatel products elsewhere.

Webster said that Sydney-based IPL Communications was added as a new Alcatel distributor in October 2003, joining existing distributor VExpress.

Alcatel competitor, Cisco, recently decided to retain LAN Systems’ distribution services, whilst it dropped broad based distributor Tech Pacific.

Webster said Alcatel’s decision to part ways with LAN Systems was not related in any way to LAN’s relationship with Cisco.

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