Alcatel Lucent SA
) was selected by
China Telecom Corp. Ltd
) to support the latter's LTE-TDD and LTE-FDD deployments in 12
provinces. The financial details of the contract were not
disclosed. Alcatel is among the top three suppliers for China
Telecom in supporting its LTE TDD and FDD modes.
Prior to this, Alcatel Lucent had signed two important
contracts with China Mobile (to support its TDD LTE solution and
4G LTE Network, which is supposed to be the world's biggest ultra
broadband network) and with Sprint (to support its new
ultra-broadband TDD-LTE mobile access network).
As per the contract with China Telecom, Alcatel will be
installing 9,892 base stations for the easy deployment of the
network. This contract will further help Alcatel to establish
itself in the high potential and immensely profitable Chinese
telecom market. The Chinese market is currently the world's
largest market in terms of subscribers, mobile data services and
smartphones. This market is increasing at a rate of more than 50%
China Telecom currently has more than 181 million mobile
customers throughout the country and is also the world's largest
wireline telecommunications provider. In order to meet customers'
demand for high speed mobile Internet, the company has decided to
deploy its LTE network. In particular, China Telecom has
preferred Alcatel-Lucent's lightRadio LTE Radio Access Network
(RAN) as a primary infrastructure for its nationwide installation
of ultra-broadband mobile access network.
Through this contract, Alcatel further re-emphasizes the fact
that it has repositioned itself as one of the leading providers
of IP Networking and Ultra-Broadband Access, as per its Shift
Plan. In the third quarter of 2013, Alcatel-Lucent's revenues
increased 7.0% year over year and 3.1% sequentially. Revenues
during the quarter were driven by strong growth in the IP
revenues, Wireless and fixed-networks, which were partially
offset by the company's older technologies.
Alcatel-Lucent currently has a Zacks Rank #3 (Hold).
Better-ranked stocks in the communications components industry
TESSCO Technologies Inc.
). Both these stocks carry a Zacks Rank #2 (Buy).
ALCATEL ADS (ALU): Free Stock Analysis Report
CHINA TELCM-ADR (CHA): Free Stock Analysis
ENVIVIO INC (ENVI): Free Stock Analysis
TESSCO TECH INC (TESS): Free Stock Analysis
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