ALU Enters into New Ventures

In Mobile World Congress (Barcelona, Spain) Alcatel Lucent (ALU - Analyst Report) announced that it has entered into new ventures in India and Iraq.

In India, ALU entered into an agreement with Telnor India for providing and managing transformation services to a fully owned subsidiary of Telnor Group Company (Telewings Communications Private Limited).

This contract will cover the states of Gujarat, Maharashtra and Andhra Pradesh. More than 250 million people of the three states will be benefited and will enjoy a high standard network experience.

Being a global leader, ALU will bring its experience and expertise for establishing the refined operational performance to Telewing’s new subscribers. ALU will use its Bell Labs Technologies for accomplishing this purpose. As per the terms of the contract, the company’s high standard Network performance tolls will also come in play.

In Iraq, Alcatel lucent signed a contract with Regional Telecom, a communication service provider in Northern Iraq. The agreement is for setting forth the super fast 4G LTE technology for wireless broadband services in Iraq, which will be experienced by the nation for the first time. This will enable the people of Iraq to enjoy a number of high speed internet accesses and will make the business performance much faster.

Apart from high-definition video streaming, video conferencing, voice calling etc, this venture is believed to help Iraq to recover and re-establish the nation’s communication infrastructure, which was hampered to a great extent by the recent political unrest. This project is believed to recover and encourage Iraqi economy as it will bring back the required business connectivity.

Recently, ALU entered into agreements with Etisalat, Srilanka, for providing the 4G LTE network solutions expertise in mobile broadband infrastructure in Srilanka. It also received a $1 billion contract from Reliance Communications, India, to manage its mobile and fixed networks.

Presently Alcatel-Lucent has a Zacks Rank #3 (a short-term Hold), whereas two of its competitors, Cisco Systems Inc (CSCO - Analyst Report) and LM Ericsson Telephone Company (ERIC - Analyst Report), have a Zacks Rank #2 (a short-term Buy).