Alcatel Shares Gain on IP Deployment News - Analyst Blog


Leading communications provider Alcatel-Lucent, S.A. 's ( ALU ) shares rose 5.7% on Sep 25 after announcing that it will deploy IP-based mobile backhaul network to support Korea-based SK Telecom 's ( SKM ) LTE-Advanced services. Alcatel's share prices, having consistently increased since then, now stands at $3.53 per share.

Alcatel-Lucent's IP mobile backhaul solution will be linking SK Telecom's cell sites and is expected to be deployed in October. The scope of the deal requires Alcatel-Lucent to deploy its proven routers including 7750 Service Router (SR), 5650 Control Plane Assurance Manager and the Alcatel-Lucent 5620 Service Aware Manager (SAM).

This network will be supporting SK Telecom's LTE-Advanced, LTE and other services and will also lead to increased customer satisfaction by introducing new mobile services. SK Telecom expects to provide premium broadband services with LTE-Advanced, which is about ten times faster than 3G networks and has about twice the speed of the conventional LTE.

This deal is in line with Alcatel-Lucent's 'The Shift Plan' that was formulated to transform the company from being a telecom generalist to a specialist in IP networking and Ulltra-Broadband services. The company's investment strategy is customer centered and is focused on consistent development of the IP-industry to meet the customers demand while providing them with faster and more efficient services.

Alcatel-Lucent currently carries a Zacks Rank #3 (Hold). Relatively better players within the similar sector worth mentioning include SeaChange International Inc. ( SEAC ) and Envivio Inc ( ENVI ), both carrying a Zacks Rank #2 (Buy).

ALCATEL ADS (ALU): Free Stock Analysis Report

ENVIVIO INC (ENVI): Free Stock Analysis Report

SEACHANGE INTL (SEAC): Free Stock Analysis Report

SK TELECOM CO (SKM): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: ALU , ENVI , SAM , SEAC , SR

More from

Related Videos



Most Active by Volume

  • $16.77 ▲ 0.36%
  • $101.58 ▲ 0.71%
  • $42.59 ▼ 0.28%
  • $46.52 ▼ 0.51%
  • $16.28 ▲ 0.74%
  • $99.53 ▲ 0.15%
  • $3.63 ▲ 0.69%
  • $17.61 ▲ 0.57%
As of 9/17/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by