France-based IP networking, ultra-broadband access provider Alcatel-Lucent’s ALU cables subsidiary, Alcatel-Lucent Submarine Networks (ASN), and telecommunication giant Telefónica TEF have joined forces. The partnership aims at upgrading PENCAN-7 and PENCAN-8 undersea cable systems to boost the capacity of broadband traffic. These undersea cable systems connect landing points on mainland Spain to Gran Canaria and Tenerife in the Canary Islands.
Telefonica’s PENCAN network, connecting the Spanish Peninsula with Canary Island, has four fiber optics submarine cables, namely PENCAN-6, PENCAN-7, PENCAN-8 and PENCAN-9. These state-of-the-art submarine cable systems allow Telefonica to offer solid ultra-broadband service along the entire stretch. The PENCAN submarine cable systems have earned a strong reputation for optimum network performance and effortless upgrades, adding to their scalability.
PENCAN-7 connects Chipiona in Cadiz Province to Las Palmas/Altavista in Gran Canaria; while PENCAN-8 connects Conil, also in Cadiz Province, to Candelaria in Tenerife. These 1,400-kilometer long cable systems offer high resilience for traffic protection.
Currently, Telefonica seeks to expand its submarine cables by upgrading the speed to 100 gigabits-per-second (Gbit/s), which will increase the current capacity tenfold. This, in turn, will allow the Spanish telecommunication service provider to meet the surging demand for broadband services.
Leveraging the competence of ASN’s unique submarine technology, telecommunication service providers can seamlessly upgrade both path and scalability of existing networks to highly advanced multi-terabit capacity. This will include staged migration, thereby driving cost benefits. Clients will also be able to enjoy “anywhere, anytime” access to ultra-broadband services for multiple applications like storage and computing.
With emergence of the smartphone market and subsequent increase in the usage of mobile broadband, the demand for coverage speed and quality has increased by leaps and bounds. Further, telecommunication service providers have been looking to boost coverage in dense urban areas, remote regions and large venues by upgrading their existing networks. Alcatel-Lucent is likely to benefit from such large-scale network upgrades on part of major telecom operators, going forward.
Alcatel-Lucent currently has a Zacks Rank #3 (Hold). Better-stocked stocks in the industry include Aerohive Networks, Inc. HIVE and Premiere Global Services, Inc. PGI. Both these stocks carry a Zacks Rank #2 (Buy).
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