Alcatel-Lucent Ramps up Submarine Cable Connectivity - Analyst Blog
Global leader in IP networking, ultra-broadband access and cloud technology, Alcatel-Lucent ALU has scaled a new level of technological success in the field of subsea communications by extending the coverage of traditional unrepeatered cable systems from 500 kilometers to over 610 kilometers. Also, the company has deployed the same fiber for signal as well as amplifier transmission to achieve a speed of up to 100 gigabits-per-second (Gbit/s), adding to its accomplishment.
Revolutionary Unrepeatered Systems
Alcatel-Lucent has freed up individual fibers that are traditionally used in combination with cable systems. This has significantly improved the efficiency of cable systems, thereby reducing the total network ownership costs for operators. This can be considered a major milestone for the company as existing unrepeatered undersea cable projects currently cover a distance of 500 kilometers and lack repeaters that amplify signal strength.
This latest subsea cable system can support channel rates of up to 100 Gbit/s, which opens up the scope for offering homogeneous solutions for systems with diverse segment lengths. Regardless of the condition on the sea floor, the company’s unrepeatered undersea cables are empowered to protect cables and offer other armoring options.
1620 SOFTNODE Platform
Alcatel-Lucent’s submarine networks subsidiary has also made a notable progress with regard to meeting increased demand for seamless connectivity and flexible data exchange from operators. The company’s latest platform –1620 SOFTNODE – is the first of its kind and can allow transmission of up to 240 terabit-per second (Tbit/s) of data on multiple fiber pairs.
The 1620 SOFTNODE platform marks a drastic improvement over the 1620 SLTE architecture on account of two factors, namely, small dimension and reduced power consumption. Also, the platform achieved a breakthrough transmission of 12.6 Tbit/s of data per fiber pair during its initial field trial.
Further, Alcatel-Lucent has inked a turnkey agreement with developer of submarine fiber optic cable, GoTo Networks, to develop Australia West Express system – the world’s first direct undersea cable that is designed to link Australia, the Middle East and Africa.
Interestingly, the company’s 1620 SOFTNODE platform will be installed in the ambitious Australia West Express project, clearly hinting at the growing popularity of new undersea plants powered with larger spectrum and more fiber pairs over traditional submarine cable architecture.
Our Take
There is no denying the fact that Alcatel-Lucent’s submarine networks are technologically advanced and will greatly help operators to obtain maximum benefits from their networks and tap new sources of revenue. Moreover, management expects demand to step up instantly for the highly advanced subsea cables as these will exercise a considerable check on signal loss apart from improving the quality of transmission.
We believe Alcatel-Lucent’s recent drive to strengthen submarine networks is noteworthy considering the increased demand for ultra-high spectrum capacity from new datacenters. The company’s unrepeatered cable systems are also equipped to handle surging demands of data transfer arising from broadband services and content delivery. Going forward, these technological innovations will likely act as key profit drivers.
Stocks to Consider
Alcatel-Lucent currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same space include ClearOne, Inc. CLRO, KVH Industries Inc. KVHI and Gigamon Inc. GIMO, all three sporting a Zacks Rank #1 (Strong Buy).
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