A recent report in LightReading stated that a potential
consolidation is waiting in the telecom network infrastructure
manufacturers industry. LightReading hinted at the prospect of a
merger between two network gear makers, namely, Nokia Solutions
and Networks (NSN), a division of
The telecom service provider industry, particularly in the
North American region is going through a wave of consolidation.
Therefore, it may be a logical conclusion for the telecom network
gear markers to begin consolidation to attain adequate economies
of scale, cost synergies and geographical expansion. Currently
both Nokia and Alcatel-Lucent have a Zacks Rank #3
The combination of Nokia Solutions and Networks and
Alcatel-Lucent may create a formidable player in the industry
with a significant customer base on a global basis and huge
operational efficiencies. The merged entity may pose severe
competitive threat to the large telecom network infrastructure
gear makers, such as
LM Ericsson AB
Cisco Systems Inc.
) and Huawei Technologies Co. Ltd.
Nokia Solutions and Networks has a strong technical efficiency
in professional managed services, customer experience management
together with a rich portfolio of mobile broadband infrastructure
and 4G LTE networks. On the other hand, Alcatel-Lucent has a
relative advantage in IP-based products, optical networking,
cloud computing/software-defined networking, fixed broadband
network and professional services.
Recently, Nokia Solutions and Networks entered into a deal
with content delivery network operator CDNetworks to accelerate
the delivery of mobile content. Liquid technology is a software
solution for network infrastructure that drastically reduces the
need for dedicated hardware. The company stated that its new
Liquid Applications will change the competitive landscape of the
telecom infrastructure gear market by revolutionizing base
Similarly, Alcatel-Lucent recently collaborated with Qualcomm
to develop small cell base stations that enhance 3G, 4G and WiFi
networks to improve wireless connectivity in both residential and
business enterprise segments.
ALCATEL ADS (ALU): Free Stock Analysis Report
CISCO SYSTEMS (CSCO): Free Stock Analysis
ERICSSON LM ADR (ERIC): Free Stock Analysis
NOKIA CP-ADR A (NOK): Free Stock Analysis
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