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Alcatel Wins Twin Contracts

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Alcatel-Lucent, S.A. recently announced that its 4G LTE network has been deployed for Setar, a telecom provider based in the Caribbean island of Aruba.

The deployment requires Alcatel-Lucent’s 20 MHz of spectrum in the 1800MHz frequency band for delivering high-speed 4G LTE (Long Term Evolution) solutions, to enhance customer experience for smart phones, tablets and mobile devices. Setar is also developing its existing 3G (WCDMA) network by strategically placing Alcatel-Lucent’s small cells in various positions across the Caribbean Island.

Setar is the first firm to offer 4G services for ultra-broadband mobile access on the island. These network facilities are expected to provide significant benefits for both residents and tourists.

On the same day, Alcatel-Lucent also declared that U.S. based TDS Telecommunications Corporation will be employing its Kindsight Broadband Security technology for efficient tracking of Internet traffic to protect home networks from hackers. This technology is expected to benefit a large number of consumers, as according to the Quarterly Report of Kindsight Security Labs, as much as 10% of home networks and over 0.5% of mobile devices are infected till date, and the numbers continue to rise.

Both these contracts are in line with Alcatel-Lucent’s ‘The Shift Plan,’ formulated to transform it from being a telecom generalist to a specialist in IP networking and Ulltra-Broadband services. The company’s 4G LTE service is a primary component of this plan.

Existing services provided by Alcatel-Lucent include lightRadio LTE, small cells and Wi-Fi for mobile service providers, GPON (Gigabit Passive Optical Network) EPON (Ethernet Passive Optical Network) and VDSL2 (Very-high-bit-rate digital subscriber line 2) vectoring for fixed networks, and Motive Customer Experience Management solutions to enhance customer engagement.

Alcatel-Lucent currently carries a Zacks Rank #3 (Hold). Relatively better players within the sector include EXFO Inc (EXFO - Free Report) and Vocera Communications, Inc. (VCRA - Free Report) both holding a Zacks Rank #1 (Strong Buy). Also worth considering is ClearOne, Inc. , which carries a Zacks Rank #2 (Buy).

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