Alcatel Shares Gain on IP Deployment News - Analyst Blog

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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

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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

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