U.S. Markets closed

Alcatel-Lucent's New Contract

Zacks Equity Research

Recently, Alcatel Lucent (ALU) announced that it has been selected by Japan's NTT Communications Corporation for a business service. Alcatel’s leading Multi-service Edge Router, the 7750 Service Router (7750 SR) will be used for this purpose.

Both the parties maintain that the advanced Edge Router system will significantly improve speed and performance in a cost efficient manner within its VPN enterprise services. Alcatel’s single, converged IP infrastructure provides simplified network management system with low cost of operations. Hence, the deployment of Alcatel’s IP infrastructure will not only minimize NTT’s operational expenditure but it will also reduce energy consumption.

Earlier, this kind of service available in Japan and worldwide was supported largely by independent networks, since there was no single network to combine them all. Alcatel’s 7750SR is particularly structured to offer high performance which will definitely benefit NTT Communications Corporation to gain competitive advantage over its peers.

Previously, in 2010 NTT used Alcatel’s high grade service routers to serve their international business customers. The present collaboration is advancement on that relationship and will also strengthen Alcatel’s position in the highly competitive Japanese market.

In the recent past, ALU entered into a number of new ventures. In India, ALU signed an agreement with Telnor India for providing and managing transformation services to a fully owned subsidiary of Telnor Group Company (Telewings Communications Private Limited) while in Iraq, Alcatel lucent inked a contract with Regional Telecom, a communication service provider in Northern Iraq. The agreement is for setting forth the super fast 4G LTE technology for wireless broadband services in Iraq, which will be experienced by the nation for the first time.

Presently, Alcatel-Lucent has a Zacks Rank #3 (Hold). A few other companies worth considering at the moment operating in the same industry are Audio Codes Ltd. (AUDC) with a Zacks Rank #1 (Strong Buy), while, Cisco Systems Inc (CSCO) and LM Ericsson Telephone Company (ERIC) have a Zacks Rank #2 (Buy).

Read the Full Research Report on ALU

Read the Full Research Report on CSCO

Read the Full Research Report on ERIC

Read the Full Research Report on AUDC

Zacks Investment Research

More From Zacks.com