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Alcatel-Lucent, CNT Debut 4G in Ecuador

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Alcatel-Lucent (ALU) and Corporacion Nacional de Telecomunicaciones (:CNT) recently installed Ecuador’s first 4G LTE high-speed mobile broadband networks. CNT is the national telecom provider in Ecuador.

This new high-speed ultra broadband connectivity will be offered across Ecuador’s major cities such as Guayaquil, Cuenca, Machala and Loja. Apart from this, the new improved service will also be provided to the important cities of Ecuador´s Pacific Coast and Southern area without disrupting the existing 2G and 3G services.

This new network is expected to offer increased capacity of high-speed mobile broadband to facilitate a range of services and application over mobile devices having download speeds of about 100 megabits per second (Mbps) and upload speeds of 40 Mbps. The high speed will thus permit CNT to provide improved fixed, mobile and convergent services, including high definition video streaming to a wide range of customers across Ecuador.   

The agreement comes after the successful trials of this duo in Amazonas and Estadio areas of Quito, which were performed during the first half of 2013.

With the help of Alcatel-Lucent’s 4G technology, CNT intends to provide improved network data capacity services to its subscribers and hence expand its national coverage, including bringing new services such as HD video, advanced online games, telepresence, e-learning and public safety.

Alcatel-Lucent has been strategically forming alliance with a number of telecom companies across the globe to provide technology backup services for wireless broadband. Therefore, Alcatel-Lucent has a strong leadership position in 4G LTE with approximately 40 contracts for commercial installations. Last week, Alcatel-Lucent and Telefonica Brasil, S.A. (VIV) entered into a 4G LTE infrastructure contract. Per the contract, Alcatel-Lucent will be the reference supplier of 4G LTE network for Telefonica’s network in Spain. This was Alcatel-Lucent’s largest 4G LTE contracts in Western Europe.

In Jul 2013, Alcatel-Lucent entered into an agreement with Surfline Communications Ltd. and successfully deployed the first commercial 4G LTE (long-term evolution) network in Ghana. The collaboration of these companies was primarily targeted to provide high-speed mobile broadband services to meet the demand for fast wireless Internet access in West and Central Africa. In Jun 2013, Alcatel-Lucent signed an agreement with Telenor Group to provide high speed Internet services to Telenor’s 2G, 3G and 4G customers across Europe and Asia.

Alcatel-Lucent currently carries a Zacks Rank #3 (Hold). Relatively better players within the Computer and Technology sector worth mentioning include AVG Technologies N.V. (AVG) and Alliance Fiber Optic Products Inc. (AFOP). Both carry a Zacks Rank #2 (Buy).

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