Ah, yikes rtm421! I haven't heard of this happening with an Alcatel device; but something similar happened to one of my Android phones previously -- it's typically referred to as a bootloop. Everything you're describing are the steps I would have taken to resolve it -- the only thing I didn't see mentioned was whether or not you'd tried to start it up in safe mode after the factory reset. If you haven't given that a shot yet, please let me know what model of device it is and I'll dig the steps up for you!
Otherwise, it may simply need to be exchanged. The good news is that if you purchased it from us just a few months ago, it should still be under warranty! If that's the case, you'd simply want to Contact Us so that we can review your options and get the ball rolling.
I wanted to swing by to see if you were able to get your phone up and working properly. Did you have a chance to try and run your phone in Safe Mode? If so, did that help it boot-up properly?
Just checking in here to see how things are going. Please let us know if you still need help on this.