Alcatel Brings High-Speed to Oklahoma - Analyst Blog

Alcatel-Lucent's ALU ultra-broadband technology and integration solutions were selected by Bolt Fiber Optic Services – a subsidiary of Northeast Oklahoma Electric Cooperative – to provide high-speed Internet and IPTV to rural areas of the north-eastern part of Oklahoma. However, the financial details pertaining to the deal were kept under wraps.

Post the successful integration of Alcatel-Lucent's gigabit passive optical network (GPON) technology, Bolt Fiber Optic Services' network speed is likely to improve 100 times. This enhanced network is expected to serve rural communities, tribal areas as well as a lake resort.

Notably, the 1 gigabit service is scheduled to commence in the fourth quarter of 2014 and will be completed by Apr 2017. Approximately 30,000 members of Bolt Fiber Optics are expected to benefit from this new gigabit ultra-broadband access initiative.

Given the rising demand for high capacity and efficient mobile networks driven by the unprecedented increase in smartphone and tablet usage, broadband networks is poised to become a booming investment area going ahead. Thus, the deployment of the 1 gigabit ultra-broadband network by Bolt Fiber Optics is viewed as a strategic move.

Alcatel-Lucent is focused on its ‘Shift Plan' strategy, as per which the company has been making sincere efforts to reposition and establish itself as a specialist of Internet Protocol IP and Cloud networking, ultra broadband fixed and mobile access. So far, the company has been successful in its tactics and has largely benefitted from the exceptional growth in IP and LTE technologies. Notably, in this regard, Alcatel-Lucent has been chosen by telecom giants such as Verizon Wireless for LTE network enhancement.

LTE services are included under Alcatel's Wireless division, which is part of the Access segment. The Access segment contributed approximately 50.4% of revenues generated in fiscal 2013. In the recently reported quarter, the Wireless division reported a 2.3% increase in revenues to €999 million ($1,369.1 million), primarily driven by strong LTE growth across major regions, especially in the U.S.

Alcatel currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Ubiquiti Networks Inc. UBNT, Polycom, Inc. PLCM and ShoreTel Inc. SHOR. While Polycom and ShoreTel sport a Zacks Rank#1 (Strong Buy), Ubiquiti has a Zacks Rank #2 (Buy).

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