Alcatel-Lucent scores China Telecom deal, unveils new optical tech
Mar 30 2015, 17:15 ET | About: Alcatel-Lucent (ALU) | By: Eric Jhonsa, SA News Editor Contact this editor with comments or a news tip
Alcatel-Lucent (NYSE:ALU) has landed a 4G infrastructure deal with China Telecom that will make it one of the carrier's three largest 4G suppliers, along with Huawei and Nokia. The deal comes a month after China Telecom (along with China Unicom) was granted a license to build a 4G network using the FDD LTE air interface, which is far more popular overseas than the TDD LTE interface initially used by bigger rival China Mobile.
ALU's equipment will be used to deploy 4G in 40 cities, including Shanghai. China Telecom (NYSE:CHA) had 187.6M mobile subscribers as of February, and has set a 2015 capex budget of $10.15B, up sharply from 2014's $4.77B; most of the spending will be directed towards 4G.
Separately, ALU has unveiled an optical networking hardware/software solution (dubbed wavelength routing) that will allow connections to be adjusted without electrical switching (thus lowering equipment and power needs), eliminate the need for on-site visits to adjust connections, and quickly detect and route around network faults.
Verizon plans to deploy ALU's solution on its North American ultra-long haul network. Rival Infinera has also been investing in products that enable a greater amount of network flexibility at the optical level, and in doing so usurping features traditionally handled by routers.
Two years ago: Alcatel-Lucent, Nokia, Ericsson win China Mobile 4G contracts
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