Business telephone system vendors.

Ranked by number of employees in L.A. County offices

Not many people can tell a digital loop carrier from a multiplexer, but businesses are becoming increasingly reliant on such sophisticated telecommunications technology. Aside from the familiar switchboards and voice mail, data networks and computer telephony integration are becoming indispensable pans of the workplace.

Most of the business phone systems vendors on this year's list reported substantial increases in their Los Angeles County staff. The largest firm, Lucent Technologies, has added 125 employees to its payroll since last year, and Santa Monica-based Fibernet went from 106 employees last year to the current 280.

Fibernet's chief executive, Douglas Denoff, said acquisitions have helped fuel the company's growth. He added that profit margins in business phone systems tend to be slim, in spite of the high volume.

Another trend that contributes to the growth in sales, according to So-Cal Telco President Gary Alexander, is the outsourcing done by the major phone companies, such as GTE and Pacific Bell. So-Cal Telco saw its staff increase from 78 last year to the current 117.

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LUCENT TECHNOLOGIES

Lucent Technologies dominates the Los Angeles market for business telephone systems, just as it dominates the global market. Formerly a part of AT&T, the New Jersey-based company reported $26.4 billion in revenues for the year ended Sept. 30, 1997.

Besides business communication systems, which accounted for 24 percent of the company's 1997 revenues, Lucent's core businesses include the design, development and manufacturing of systems for network operators and microelectronic products. In 1997, the company strengthened its market position for business telecommunication systems with the acquisition of Octel Communications, a manufacturer of voice, fax and messaging products.

Last week, Bell Atlantic disclosed that it had awarded Lucent part of a $1.5 billion contract to upgrade its network over the coming five years. Partly in response to this news, Lucent's share price rose 6 percent contributing to a rise of nearly 75 percent in its stock value from a year ago.

Industry analysts predict that Lucent's fortunes won't end there. In fact, with telecommunications companies being forced to upgrade their networks in response to the increasing demand for data services, Lucent is well positioned to have another record year, they say.