Alcatel-LucentALU recently announced that it is aiding China Telecom Corp. Ltd. CHA in its mission to expand 4G Long Term Evolution ("LTE") deployments for meeting the increasing demand for high-quality ultra-broadband services in the country. Powered by Alcatel-Lucent's 9926 eNodeB LTE radio access technology, the ultra broadband services will be extended to 12 provinces in China.
Additionally, as part of the above plan, Alcatel-Lucent is pioneering the introduction of LTE-Advanced Carrier Aggregation capabilities for use in LTE Frequency Division Duplex ("FDD") in China. These deployments will particularly take place in populous cities, which witness the highest data demand and the strongest GDP growth.
Incidentally, Alcatel-Lucent's LTE technology has been deployed by 8 of the 10 largest mobile network operators in the world, who own over 50% of the LTE market. According to company sources, it presently has 87 LTE contracts in 48 countries.
Since Mar 2015, China Telecom has been focusing to transform the "mobile ultra-broadband experience" for subscribers by increasing the reach of its LTE deployments. The company's recent move aims to nearly double the data download speeds currently provided by its peers, offering a spectrum of superior high-bandwidth applications. Post completion of these deployments, its subscribers will be able to access videos, pictures and interactive web contents through amplified network capacity.
According to market research reports, global LTE market is projected to reach a value of $610.71 billion by 2019, with an estimated CAGR of 78.6% for 2013-2019. Moreover, by 2016, there will be estimated 1.466 billion users, which in turn, represent 70% of the global mobile broadband client base.
Encouragingly, market reports suggest that China has emerged as the strongest growth driver of the LTE market, especially in the Asia-Pacific region. Also, it has become the largest mobile market, surpassing the U.S. and continues to witness colossal growth in data demand. We believe that solid growth opportunities in the country, coupled with the recent merger deal with Nokia, will likely bolster this Zacks Rank #3 (Hold) stock's leadership position in the LTE market.
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