Alcatel is selling the European transmission assets of DSC Communications, which it acquired last June, to US telecoms equipment supplier Tellabs.
Tellabs will pay $110 million for the assets as well as entering into a patent cross-licensing agreement with Alcatel under which the companies will license their patents to each other.
Alcatel said most of the former DSC assets sold to Tellabs are "redundant with the synchronous and optical transmission activities in which Alcatel is both a technology innovator and the European and worldwide leader.
"This sale of redundant assets is part of Alcatel's continuing portfolio rationalisation program," the French company added.
Alcatel bought DSC a developer of digital switching, transmission, access and network management systems for around $4.4 billion last June.
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