Spanish telecom company
) has reportedly tied up with
) for developing its 4G LTE network infrastructure. However, the
terms of the deal remain undisclosed.
Per the deal, Alcatel-Lucent will be responsible for
installing 8,000 4G LTE base stations in Western Europe for
Telefonica. We believe the new investment would solidify
Telefonica's 4G presence in Europe and support growth going
According to reports, the new deal represents one of the
largest LTE development contract following
) 4G network infrastructure contracts to local suppliers Huawei
and ZTE. Telefonica is making significant progress in terms
of LTE deployments.
The company launched the 4G Long-Term Evolution (LTE) network
in several rural areas in Germany, using the 800 MHz and 2.6 GHz
frequency bands. The company is further working to deploy LTE
services in urban areas, with Hamburg being the first followed by
Berlin and the Ruhr.
Further, Telefonica is also taking initiatives to adopt new
technologies like Voice over LTE (VoLTE) that would allow call
transfers between LTE and 3G mobile networks with seamless
connectivity. This platform is going through several
technological experiments in Germany as the company plans to
deploy it soon.
Going forward, the company is also forming strategic alliances
so at to increase its market penetration. Moreover, Telefonica
Digital acquired TokBox - the leading video communications
platform - last year. This acquisition improved Telefonica's core
business of communications, which has a goal to generate digital
revenues of €5 billion by 2015.
Additionally, in Feb 2013, the company's digital wing
collaborated with Pinsight Media, powered by
) to provide advertising services across the U.S. Latin America
and Europe that will strengthen Telefonica's global reach.
Further, in Apr 2013, the company announced its partnership
with AirWatch, theU.S.based provider of enterprise-grade mobile
device management, for delivering Security Mobile Device
Management (SMDM) services for enterprises. All these
opportunities will help Telefonica to outperform in the global
Telefonica currently has a Zacks Rank #3 (Hold).
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