William O'Shea, the group president for Lucent's business communication systems and data networking systems, said that Japan was an attractive market with an unmet need for the kinds of communication networks and software the company provides.

"Right now were a $30 billion company, and we want to see a growth of 15 to 20 per cent per year. In order to maintain that growth, we must add new business through either new technologies or markets," he told a news conference.

O'Shea also told reporters that in expanding their business in Japan as well as the region, it would not rule out possible acquisitions of other companies.

"Besides internal development, we have the choice of acquiring others, or forming partnerships through Original Equipment Manufacturing (OEM) and joint marketing,"he said.

Lucent provides a range of products including intelligent switching, data networking, optical networking and wireless communications. Of those, O'Shea said, data networking is currently the fastest growing segment.

Lucent introduced its first data networking products in the Japanese and Asian markets in June. In Asia, it will also be promoting eleven of what it calls the "hot businesses," which includes optical and wireless networks in addition to other communications software.

"We now see the overall telecommunications market at $60 billion, but by 2001 we want to make that $104 billion," he said.

While he was careful not to give any target share figures, he said that by the year 2001, Lucent should be the number one player in the worldwide communication networks business. "That would mean it would have from 10 per cent to 15 per cent of the overall market," he said.