Credit: Shutterstock photoUruguay's government-owned telecom company - Antel (Administración Nacional de Telecomunicaciones) - has chosen Alcatel-Lucent 's ( ALU ) small cell technology to boost its mobile ultra-broadband capacity in congested and difficult-to-reach areas. Notably, Alcatel has been providing LTE and 3G technology support to Antel's mobile networks.
The demand for small cell technology is on the rise as the installation of large towers in inaccessible areas is quite a demanding task. Small cells primarily improve the cellular signal levels in areas lacking efficient coverage due to hindrances in the form of buildings, adverse geographical conditions or disadvantageous distance from a cell tower. As about 55% of Uruguay's population dwells in a metropolitan area surrounding the capital, Montevideo, small cell deployment will radically improve broadband efficiency in areas of limited coverage or where congestion has exhausted capacity.
Furthermore, the deployment of the small cell technology will help Antel considerably enhance network performance by combining a number of wireless technologies to economically deliver coverage and capacity. Further, small cells make effective use of the available wireless spectrum to improve the quality of 3G offerings.
According to research firm Infonetics, the small cell market is likely to grow an astounding 65% this year, to touch the $1.3 billion mark. Significant 4G LTE (Long term Evolution) growth and increased deployment of small cells are the primary encouraging factors that support the promising outlook.
Alcatel-Lucent's repositioning and establishment of itself as a specialist of Internet Protocol (IP) and Cloud networking, ultra broadband fixed and mobile access has been quite impressive, thanks to Combes' Shift Plan' strategy. So far, the company has been successful in its initiatives and has largely benefited from the exceptional growth in IP and LTE technologies. Notably, Alcatel-Lucent's small cell products have been chosen by telecom giants such as Verizon Communications Inc . ( VZ ) to enhance their respective LTE networks.
In a separate development, Alcatel-Lucent signed a collaboration agreement with Towerstream Corporation ( TWER ), a leading global provider of 4G and Small Cell Rooftop Tower solutions, to develop small cell wireless infrastructure. Through the partnership, Alcatel-Lucent will include Towerstream in its Metro Cell Express Site Certification program, which will enable carriers to deploy high-speed and efficient wireless networks conforming to subscriber specifications. Further, this deal also strengthens the company's capabilities for site acquisition, power accessibility, and backhaul connectivity.
Alcatel currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the industry that can be considered at present is ShoreTel Inc. ( SHOR ) with a Zacks Rank #1 (Strong Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
