Seeking Alpha

Alcatel-Lucent (ALU -9.2%) and Ericsson (ERIC -5.3%) are off sharply following supplier...

Alcatel-Lucent (ALU -9.2%) and Ericsson (ERIC -5.3%) are off sharply following supplier Powerwave's (PWAV -42.5%) huge warning. The former is also being hit by a downgrade from Jefferies - the firm is worried about declining EV-DO equipment sales now that S and VZ are embracing LTE, and thinks 2H North American telecom capex could be weak. (earlier)
Comments (2)
  • Best Infrastructure Technology : Alcatel-Lucent for lightRadio Network.


    Alcatel-Lucent - lightRadio Network
    "The lightRadio Network is a radically new wireless network paradigm that dramatically improves end user quality of experience and network economics. With the lightRadio Network, operators can increase wireless capacity where people want it most – in their homes, offices and in hotspots – and also lay the foundation for a network that can adapt to rapidly shifting demand. The lightRadio Network achieves these results by harmoniously integrating different radio access technologies, a wide range of radio access nodes, a highly flexible AnyG Transport solution and a very high capacity core network. The end results for mobile network operators are happy, profitable customers and a greener network. "




    "Reflects the global importance of highly-flexible, cost-effective base station systems - the concept is being heavily adopted in major mobile networks around the world."
    28 Feb 2012, 03:27 PM Reply Like
  • VZ may be abandoning expansion of its EV-DO network but they are building an LTE network from scratch and ALU is helping them do it. If anything, news that EV-DO expansion is declining should be good news for ALU since the LTE network must be built from scratch, and this news implies that LTE buildout will now be sped up because, for technical reasons, it behooves VZ to finish the buildout ASAP. It is essentially the creation of an entirely brand new network--one that will cover Verizon's entire 3G coverage footprint by the end of 2013. All new equipment required. That's a lot of equipment! This is good news for LTE contractors like ALU.
    28 Feb 2012, 03:28 PM Reply Like
DJIA (DIA) S&P 500 (SPY)