Alcatel Lucent Soci (ALU - Analyst Report) recently announced that its advanced data management platform has been selected by Verizon Wireless to enhance the latter’s Long Term Evolution (LTE) network. The financial terms of the deal remain undisclosed.
Verizon will be deploying Alcatel-Lucent’s Subscriber Data Manager (SDM) across its whole network to aid in its expansion plans. The SDM will consolidate the multiple application databases of Verizon, leading to an efficient management of data traffic as the network grows.
SDM belongs to the Alcatel-Lucent’s novel IMS Subsystem solutions which leverages the communication network while reducing costs and enhancing customer experience. The company has been providing IP Multimedia Sub System (IMS) solutions to Verizon since the launch of the Verizon Wireless 4G LTE in 2009.
In May 2013, Verizon Communications had teamed up with Alcatel Lucent to deploy small cells on its 4G network for augmenting its existing 4G LTE network while primarily concentrating on high traffic locations.
Apart from the SDM, Alcatel-Lucent will also be applying its Motive Authentication, Authorization and Accounting Server, Centralized Operations Manager and SDM Expert products along with its VoLTE feature set.
Verizon Wireless is a joint venture between Verizon Communications Inc. (VZ - Analyst Report) and Vodafone Group (VOD - Analyst Report).
The deal further strengthens Alcatel-Lucent’s ‘The Shift Plan,’ a strategy to reposition and establish itself as the specialist of Internet Protocol (IP) and Cloud networking, ultra broadband fixed and mobile access. The company has already seen improvement in its cash and balance sheet position in the past few quarters. Moreover, its share prices have surged by about 200% in the last year, reflecting the success of this strategy.
Alcatel currently carries a Zacks Rank #3 (Hold). Another stock in the industry worth considering at the moment is AudioCodes Ltd. (AUDC - Snapshot Report), which carries a Zacks Rank #1 (Strong Buy).