Lucent Technologies this week disclosed where it is investing for product development - and where it is not.

In the earnings call for its fiscal fourth quarter of 2002, the company, as expected, outlined a product line restructuring strategy that focuses on its "core competencies" -- optical, circuit switching, circuit-to-packet migration, mobility and services. The line will include products that have "near and clear" revenue opportunities, according to Lucent President and CEO Pat Russo.

Russo listed products that do not meet that criterion: Lucent's access portfolio of Stinger DSL, AnyMedia multiservice and the APX and MAX Universal Gateways; and the Class 4/5 switch replacement capabilities of the Lucent SoftSwitch.

In multiservice core switching, Russo did not mention the TMX 880 MPLS switch, but said the company is committed to migrating service provider customers to an MPLS core "given our customers' stated intent on leveraging their embedded (ATM) networks." With that, she added that Lucent's existing GX-550 ATM switch will be enhanced with MPLS and "other features as requested by our customers."

A Lucent spokesman, when asked about the status of the TMX 880, said "Lucent is committed to MPLS. We're working with customers to help them determine the best way to evolve to next generation technologies."

The TMX 880 has been rumored to be on Lucent's "deferred investment/deferred development" list, as Russo referred to the de-emphasized products this week. Indeed, investment firm UBS Warburg suggested Lucent exit the ATM/frame relay multiservice switching business by selling it to Cisco Systems, claiming that Lucent would be unsuccessful long-term in this market and that the TMX 880 product and strategy is "more likely to fail than succeed."

Lucent had no comment on UBS Warburg's assertions.

Lucent was a little more definitive on its plans for other products. For the multiservice switching edge, Russo said Lucent would continue to invest in the CBX-500 and PSAX concentrator, the latter of which has had some recent success in wireless network applications.

In optical, Lucent will retain its Metropolis metro and edge optical platforms, and its LambdaUnite and LambdaExtreme long-haul systems. The Metropolis line is in 45 trials and has had a well-publicized -- and lucrative -- win at Verizon, which is valued between $500 million and $1 billion.