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Alcatel-Lucent (ALU - Analyst Report) recently announced that its 4G LTE offerings have been selected by the Mexico based wireless provider America Movil (AMX - Analyst Report) for rolling out the network in the Dominican Republic.


The scope of the contract requires Alcatel-Lucent to deploy the 4G LTE overlay network for America Movil’s subsidiary - Claro Dominican Republic. This will enable the speedy set up of ultra-broadband mobile access services for enhancing the multimedia applications like high-definition video, high definition videoconferencing, video-on-demand, online gaming as well as significant improvement in high-speed navigation.


Alcatel-Lucent will be using its advanced technologies like LTE Radio Access Network (RAN), 9471 Wireless Mobility Manager along with its 5620 Service Aware Manager (SAM) to ensure high quality and reliability of the network.


The contract is the most recent among the initiatives taken by this world’s third largest wireless provider to bring 4G LTE in Latin America that started in 2012 from its Claro Puerto Rico division. Alcatel-Lucent’s 4G LTE network will benefit about 80% of Dominican Republic's population covering most of the region.


Prior to this, Alcatel-Lucent had deployed an end-to-end 4G LTE network for another division of America Movil - Claro Uruguay. Such contracts are a strategic fit as they enable Alcatel-Lucent to broaden its presence to new markets like these in Latin America.  


Alcatel-Lucent had initiated The Shift Plan in 2013, under which it succeeded in repositioning and establishing itself as the specialist in IP and Cloud networking, ultra broadband fixed and mobile access. Now halfway through the plan, Alcatel-Lucent has already shifted its focus from the older technologies (2G and 3G wireless equipment) to high potential newer ones like 4G LTE and Internet routing.


The company is gaining market share in the wireless and broadband market by leveraging innovation and providing high-quality services.  Recently, its research wing- Bell Labs achieved a 10 gigabits-per-second (Gbps) new broadband speed record using the existing infrastructure. This achievement is remarkable as it illustrates how existing copper access networks can be utilized to provide high-speed ultra-broadband access services.


Alcatel-Lucent 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) and Plantronics, Inc. (PLT - Snapshot Report), both of which carry a Zacks Rank #2 (Buy).

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