Alcatel-LucentALU recently collaborated with Spirit Communications to facilitate the latter in offering a terabit-speed network performance to the residents of south-east United States. The deal will enable Spirit Communications to address the thriving demand for ultra-broadband Internet access by enterprises and government in the region.
Talking about the technicalities, Alcatel-Lucent will deploy its highly advanced 7950 Extensible Routing System ('XRS') to attain the same. This system will be managed by the 5620 Service Aware Manager ('SAM') of Alcatel-Lucent, which had been used by Spirit Communications for reshuffling of routine IP and business operations.
With aid from Alcatel-Lucent, Spirit Communications will be able to offer superfast and reliable access services to its customers, with initial offering planned in cities like Columbia and Charlotte along with some chosen regions of the Carolinas and Georgia. In particular, this privately owned communications company intends to provide lighting fast speed network supporting 1 gig, 10 gig and 100 gig connectivity.
We believe the latest Alcatel-Lucent and Spirit Communications collaboration underlines the company's strong position in the structurally growing optics and IP Routing markets. Encouragingly, the company's Core Networking segment has been performing consistently well and has registered year-over-year growth of about 22% in the second-quarter 2015.
With emergence of the smartphone market and subsequent increase in the usage of mobile broadband, the demand for coverage speed and quality has increased by leaps and bounds. Further, telecommunication service providers have been looking to boost coverage in dense urban areas, remote regions and large venues by upgrading their existing networks. Alcatel-Lucent is likely to benefit from such large-scale network upgrades on part of major telecom operators, going forward.
Alcatel-Lucent currently has a Zacks Rank #3 (Hold). Better-stocked stocks in the industry include Aerohive Networks, Inc. HIVE , Gigamon Inc. GIMO and Premiere Global Services, Inc. PGI . All these stocks carry a Zacks Rank #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
