Alcatel-Lucent (ALU - Analyst Report) recently collaborated with UNE EPM Telecomunicaciones to launch 100 gigabit-per-second network in Columbia. The network is already aiding UNE customers to enhance their FIFA World Cup experience by providing speedy and consistent services for video streaming.
UNE has deployed Alcatel-Lucent’s 1830 Photonic Service Switch (PSS) platform to enhance speed and capacity of its network. PSS platform not only substantially enhances the speed and capacity of UNE by offering 100G service, but will also minimize costs and aid in transferring large data over longer distances. This will significantly simplify UNE’s operations.
This dense wavelength division multiplexing (DWDM) / optical transport network (OTN) consists of the key fiber rings in the country’s backbone network. These fiber rings connect the submarine landing points located in Cartagena, Barranquilla, Tolu to the primary capital regions like Bogota, Medellin, Bucaramanga, Cucuta, Cali, Ibague, Neiva and Popayan.
The entire network was deployed over three phases, which reached completion in Jun 2014.The network has a high transmission capacity of 8.8 Tbit/s. This will allow people to transfer massive amount of data for services like Internet, 4G LTE connectivity, TV services and data center connectivity among others.
Further, this project is also in line with the government’s Vive Digital Plan, which aims to accelerate internet connectivity in the region for bridging the growing demand while promoting growth in the country. Per the plan, the government intends to broaden the internet users’ base from 6.6 million at present to 8.8 million by the end of this year.
Alcatel-Lucent is intending to capitalize on the rising demand for ultra-broadband access in metropolitan regions from both mobile and fixed-line consumers. Columbian Internet access currently stands at 64% of its total population, of which 25% consumers use advanced mobile devices like tablets and smartphones. Both Alcatel-Lucent and UNE are likely to gain significantly from this project.
Alcatel currently carries a Zacks Rank #3 (Hold). Other better-ranked stocks in the industry that can be considered at present include Corning Inc. (GLW - Analyst Report), KVH Industries Inc. (KVHI - Snapshot Report) and Plantronics, Inc. (PLT - Snapshot Report). All three stocks carry a Zacks Rank #2 (Buy).