Alcatel-Lucent, T-Mobile 400G Trial Positive in Czech Republic - Analyst Blog

IP networking, ultra-broadband access and cloud technology giant Alcatel-Lucent ALU, in collaboration with T-Mobile Czech Republic, recently concluded the first test of 400G-speed data transfer over an existing network in the Czech Republic.

The trial was performed, over a distance of 320 km between Prague and Hradec Králové, to demonstrate the potency of T-Mobile’s existing network in catering to the rising data demand as well as providing highly advanced capacity enterprise and wholesale services in the future. In particular, to perform the test, Alcatel-Lucent deployed its 1830 Photonic Service Switch (‘PSS’) along with the 400G Photonic Service Engine (‘PSE’) over T-Mobile’s current dense wave division multiplexing (‘DWDM’) network infrastructure.

Notably, the 400G PSE of the company has the ability to enhance the performance of the current 100G networks and offers operators a cost-effective way to spread their footprints in unexplored soil.

We believe that the successful completion of this trial will underline the competency of Alcatel-Lucent’s 400G technology and its leadership in IP networking. Moreover, the network test is a green signal to T-Mobile Czech Republic’s plan of expanding its mobile broadband services in the country. The firm, which is the international affiliate of T-Mobile US, Inc. TMUS, intends to network 97% of the local inhabitants of the country via its 3G and LTE offering, by 2015.

Of late, Alcatel-Lucent has been strategizing on expanding its business on varied spectrum through a spate of deals and investments. This month, the company has secured an important contract from China Railway to upgrade the existing network of rail lines in Beijing and Nanning Railway Bureaus. Also, Alcatel-Lucent scaled a new level of technological success in the field of subsea communications by extending the coverage of traditional unrepeatered cable systems. Apart from these, the company inked agreement with KPN and Windstream Holdings, Inc.

We believe that these deals hold considerable promise and will step up Alcatel Lucent’s market share going forward.

Alcatel-Lucent currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same space include KVH Industries Inc. KVHI and Gigamon Inc. GIMO, both sporting a Zacks Rank #1 (Strong Buy).

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