Alcatel-Lucent ALU recently helped to upgrade the optical network of Optus, the second largest telecommunications company in Australia. Supported by Alcatel-Lucent’s state-of-the-art 1830 Photonic Service Switch (“PSS”) and Photonic Service Engine (“PSE”)-based technology, the telecommunications firm’s inter-capital fiber network between Cairns and Perth can now attain speeds as high as 100 Gigabits per second (Gbps).
Optus provides a robust network capacity for retail, government and enterprise customers. Of late, the company’s capability to deliver high-speed connectivity was challenged by a rapid surge in upgrading of cloud computing, data centers and subsea cable. Alcatel-Lucent’s technology has helped Optus create an agile transport network with a scalable delivery capacity that will not only allow the latter to overcome the present challenges but also unlock new opportunities.
Helped by this upgrade, Optus’ network capacity has increased tenfold. Alcatel-Lucent’s 1830 PSS and PSE-based technology allows 100G signal to travel distances as long as 1800 miles and beyond, thereby slashing “re-generation” costs.
Alcatel-Lucent’s 1830 PSS and PSE offerings have been witnessing rapid market traction during the second quarter of 2015, with companies like Telecom Italia and T-Mobile Czech Republic selecting its optical networking technology to aid their transformation.
With a global customer base of more than 500, management believes both PSS and PSE will help to boost revenue growth in its Core Networking Segment that caters to IP Routing and Transport markets. In terms of revenue, Alcatel-Lucent ranks among the top 10 global companies in the optical hardware market, with Cisco CSCO topping the list.
According to the Wall Street Journal in 2014, Alcatel-Lucent came fifth, holding 10% market share in the wireless equipment market, in which Ericsson ERIC held the top spot with 30% market share. Encouragingly, in the second quarter of 2015, this Zacks Rank #3 (Hold) stock disclosed its intention to merge with Nokia NOK in order to develop ultra-powerful network solutions. On a joint basis, the companies are expected to attain the second largest market share replacing Huawei.
Apart from this deal with Nokia, we also believe the company’s “Shift Plan” and continuous contract wins will allow it to grab a greater market share, going forward.
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