Alcatel Lucent Soci
) recently extended its collaboration with
) for conducting research and development in cloud and security
technologies. The alliance of the two companies is aimed to
enhance the development of innovative technologies like Network
Functions Virtualization (NFV).
NFV is intended to provide telecom operators with maximum
benefits from their Internet Protocol (IP) networks, including
the Long Term Evolution (LTE) infrastructure. The new technology
is designed to substitute the hardware deployed at present with
software solutions for the network. The software solutions, being
more flexible, are expected to drive up innovation in the
products and services while reducing costs significantly.
The two companies will invest together in the research and
development of this technology. Areas of significant importance
for research are Alcatel-Lucent's Virtualized Radio Access
Networks (RAN), Cloud Platform and the High-performance Packet
Processing for advanced IP/Multi-protocol label switching (MPLS)
platforms and functions.
The integrated development of this trio would enhance LTE
wireless solutions as well as the company's CloudBand NFV
platform to ensure an efficient testing, validation and
deployment of the new technology. Furthermore, Intel's expertise
will enhance the company's solutions for the virtual IP networks
using the structured MPLS technology.
Separately, to further enhance the NFV, Alcatel-Lucent has
also signed an agreement with a Spanish telecom company,
). The two companies will be collaborating for an efficient
virtualization of the network using Alcatel-Lucent's CloudBand
Prior to this, in Sep 2013, these two companies had an
alliance for developing the 4G LTE network infrastructure. While
in 2004, Intel and Alcatel-Lucent had joined forces to develop
the interoperability testing program, WiMax.
Per sources, Alcatel-Lucent is following the strategy of
product differentiation and innovative solutions to leverage its
competitiveness in the telecom equipment industry. The company is
intending to expand its market share while retaining its pricing
The company is on its way to reposition and establish itself
as the specialist of IP and Cloud networking, ultra broadband
fixed and mobile access per its 'The Shift Plan.' It has already
seen improvement in its cash and balance sheet position in the
past few quarters. Moreover, its share prices have surged by
about 200% in the last year, reflecting the success of this
Alcatel currently carries a Zacks Rank #3 (Hold). Another
stock in the industry worth considering at the moment is
), which carries a Zacks Rank #1 (Strong Buy).
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