AT&T's (NYSE:T) announcement of a $22 billion, three-year-long program of capital investment was supposed to save the telecom equipment industry. So far, it seems only Nokia (NYSE:NOK) and Cisco (NASDAQ:CSCO) are thriving. Meanwhile, erstwhile industry giant Alcatel-Lucent (UNKNOWN:ALU.DL) is failing fast, as revenues fall, profits disappear, and cash vaporizes.

With a big debt payment coming due in 2015, will Alcatel make it? Maybe not, if it keeps burning cash at the rate we saw in Q1. Fool contributor Rich Smith explains it all in the video below.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems and Goldman Sachs. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.