Sprint (S) in Talks to Utilize New Alcatel (ALU) 'Network-Expanding' Technology
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Alcatel-Lucent (NYSE: ALU) is moving higher ahead of the bell Tuesday following reports it might be in strategic talks with Sprint (NYSE: S) with respect to next-gen telecommunications equipment.
According to Bloomberg, Sprint might be looking to expand use of Alcatel's lightRadio, which is a smaller cube -- about 3-inches per side -- used to expand a network's capacity in a given spot. The move comes as capacity in the industry is getting tighter and tighter for mobile service.
Cisco Systems (Nasdaq: CSCO) estimates that the increase in downloading, Web surfing, application usage, and other items on mobile devices, will cause mobile-data traffic to swell 26-times in the next five years.
But, limited spectrum has carriers scrambling to expand their networks. Alcatel has a plethora of products which might prove useful to bolster coverage more cheaply then constructing new towers and networks.
U.S. carriers like Verizon (NYSE: VZ) and AT&T (NYSE: T) have voiced the need for more spectrum in recent months, though some acquisitions have come under scrutiny from the FCC.
There are other companies -- such as QUALCOMM (Nasdaq: QCOM) -- who are also working on technology to bolster networks. Further, carriers are becoming more creative with ways to save spectrum, like automatically switching users to local Wifi networks where available.
With capacity shrinking and no signs of slowing emerging, Alcatel could make a huge jump with its new technologies. Shares are up 1.4 percent early Tuesday.
According to Bloomberg, Sprint might be looking to expand use of Alcatel's lightRadio, which is a smaller cube -- about 3-inches per side -- used to expand a network's capacity in a given spot. The move comes as capacity in the industry is getting tighter and tighter for mobile service.
Cisco Systems (Nasdaq: CSCO) estimates that the increase in downloading, Web surfing, application usage, and other items on mobile devices, will cause mobile-data traffic to swell 26-times in the next five years.
But, limited spectrum has carriers scrambling to expand their networks. Alcatel has a plethora of products which might prove useful to bolster coverage more cheaply then constructing new towers and networks.
U.S. carriers like Verizon (NYSE: VZ) and AT&T (NYSE: T) have voiced the need for more spectrum in recent months, though some acquisitions have come under scrutiny from the FCC.
There are other companies -- such as QUALCOMM (Nasdaq: QCOM) -- who are also working on technology to bolster networks. Further, carriers are becoming more creative with ways to save spectrum, like automatically switching users to local Wifi networks where available.
With capacity shrinking and no signs of slowing emerging, Alcatel could make a huge jump with its new technologies. Shares are up 1.4 percent early Tuesday.
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