ALU to Support China Mobile's 4G LTE


China Mobile has selected Alcatel-Lucent, S.A.’s (ALU) all-IP Evolved Packet Core portfolio to support its 4G LTE Network, which is supposed to be the world’s biggest ultra broadband network.

The Alcatel-Lucent Evolved Packet Core (:EPC) is a high-capacity IP solution that is at the heart of a mobile network. It primarily comprises three platforms - data, mobility and policy.

Prior to this contract, China Mobile had selected Alcatel-Lucent to install 11% of their new LTE network, consisting of more than 200,000 TD-LTE base stations, by the end of 2013. Now for the present contract, Alcatel has been allotted 24% of the entire EPC network of China Mobile. Therefore, it makes Alcatel Lucent the primary supplier for the company’s 4G LTE network.

Through this contract, Alcatel further re-emphasizes the fact that it has repositioned itself as one of the leading providers of IP Networking and Ultra-Broadband Access, as per its Shift Plan.

China Mobile is a leading telecom operator in China with a subscriber base of 750 million, which is almost 60% of the entire subscriptions in the country. Further, China is one of the promising markets for mobile data services and smartphones, which is growing at a rate of over 50% every year. Therefore, China Mobile is deploying such huge infrastructure to support the ever-increasing demand for mobile Internet, video and data in the world's largest smartphone market.

Alcatel Lucent currently has a Zacks Rank #3 (Hold). Other companies in the industry which look more promising at the moment are EXFO Inc. (EXFO), ClearOne, Inc. (CLRO) and Numerex Corp. (NMRX). EXFO currently has a Zacks Rank #1 (Strong Buy), while ClearOne and Numerex both have a Zacks Rank #2 (Buy).

Read the Full Research Report on ALU
Read the Full Research Report on EXFO
Read the Full Research Report on CLRO
Read the Full Research Report on NMRX

Zacks Investment Research

View Comments (1)