ALU to Support China Mobile's 4G LTE

Zacks

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).

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