) recently entered into a 4G LTE infrastructure contract. Alcatel
Lucent will the reference supplier of 4G LTE network for
Telefonica's network in Spain. The financial terms of the
contract were not disclosed.
This agreement was signed after two successful pre-commercial
4G LTE pilot networks installations in Madrid and Barcelona. In
addition, Telefonica's confidence on Alcatel Lucent increased
after the display of Alcatel-Lucent's 4G LTE capabilities over a
live network at the Telefonica in Barcelona at Mobile World
Congress 2012 event.
The deployment of 4G LTE networks is expected to increase the
speed of services like mobile video download by almost 10 times.
In addition, the network will also increase the upload speeds by
about 10 megabits-per-second and low latency connections of 50
milliseconds, which are very important for video sharing and
Alcatel-Lucent is expected to install about 8,000 4G LTE base
stations and the 5620 Service Aware Manager (5620 SAM). This
apart, Alcatel-Lucent will also provide installation and turnkey
project management services during the preliminary phase of the
project, along with integration, maintenance and configuration
optimization to further reduce time-to-market for Telefonica
The deal is a win-win situation for both the companies. For
Alcatel Lucent, the deal is the largest 4G LTE contracts in
Western Europe. At the same time, the 4G LTE network complements
Telefonica Spain's existing ultra-broadband fiber network with
the capacity to meet subscribers' ever-increasing need for data.
Alcatel-Lucent has been strategically forming alliance with a
number of telecom companies to provide technology backup services
for wireless broadband. In Jul 2013, it entered into an agreement
with Surfline Communications Ltd. and successfully deployed the
first commercial 4G LTE (long-term evolution) network in Ghana.
The collaboration of these companies was primarily targeted to
provide high-speed mobile broadband services to meet the demand
for fast wireless Internet access in West and Central Africa.
In Jun 2013, Alcatel Lucent signed an agreement with Telenor
Group to provide high speed Internet services to Telenor's 2G, 3G
and 4G customers across Europe and Asia.
Alcatel-Lucent currently carries a Zacks Rank #3 (Hold).
Relatively better players within the Computer and Technology
sector worth mentioning include
AVG Technologies N.V
Alliance Fiber Optic Products Inc
). Both carry a Zacks Rank #2 (Buy).
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