Telefonica-owned (TEF) U.K. carrier O2 says it will run out of capacity in parts of its network...

|About: Telefonica S.A. (TEF)|By:, SA News Editor

Telefonica-owned (TEF) U.K. carrier O2 says it will run out of capacity in parts of its network by 2014-15 thanks to soaring mobile data traffic, and will need to adopt "small cell" base stations in response. That isn't great news for debt-laden Telefonica, but is a positive for Alcatel-Lucent (ALU), which is an early leader in the small cell market, and has a supply agreement with Telefonica. To the extent strained networks drive 4G investments, it's also a positive for Ericsson (ERIC).