real-time news and commentary for investors
Thursday, Sep 5
Alcatel-Lucent wins major Spanish 4G contract from Telefonica
- Alcatel (ALU +2.1%) is providing 8K of its 4G base stations and its 5620 SAM network management software platform to Telefonica's (TEF +1%) Spanish unit. The company will also provide installation/project management services. (PR)
- Alcatel says the deal is its largest European 4G win thus far, and that it now has 40+ commercial 4G contracts.
- Struggling to cope with poor macro conditions and plunging service revenue, Spanish carriers have thus far been dragging their feet with regards to widely deploying 4G. The Alcatel/Telefonica deal could be a sign this is about to change.
- Due to 2G/3G order weakness, Alcatel's wireless division sales fell 1% Y/Y in Q2 after rising 5% in Q1. The company has reportedly grabbed a 13%, $424M share of a massive 4G base station order recently issued by China Mobile.