Alcatel-Lucent wins two LTE deals in China

Kit vendor Alcatel-Lucent has announced two deals to supply access technology for China Telecom and China Mobile’s LTE networks.

China Telecom is using the vendor’s LTE convergence solution for its nationwide trial of high-speed mobile broadband. Alcatel-Lucent is one of three main suppliers for both China Telecom’s LTE-TDD and FDD-LTE network infrastructure, according to the vendor.

It will also supply China Telecom with almost 10,000 base stations to be deployed across 12 provinces in China. The move forms part of Alcatel-Lucent’s repositioning as a specialist vendor of IP networking and ultra-broadband access solutions.

“LTE deployments such as that with China Telecom underscore the importance of offering technology enabling both the transition to ultra-broadband access and unlocking its benefits,” the vendor said in a statement.

Alcatel-Lucent CEO Michael Combes hailed the deal as a a significant win for the vendor that underlines the relevance of its LTE convergence strategy.

“With this innovative platform, China Telecom will be able to launch its LTE services rapidly, allowing its customers to quickly enjoy the services enabled by this technology,” he said.

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The vendor has also announced it will deploy small cells for China Mobile’s TD-LTE network. Alcatel-Lucent’s Metro Cell solution. The solution was co-created by the vendor and China Mobile. The vendor will also supply 24 per cent of the Evolved Packet Core for China Mobile’s LTE network, it added.

“The application of our co-created small cells technology underlines the closeness of our co-operation,” added Combes. “By leveraging our innovations and experience driving 4G adoption worldwide, Alcatel-Lucent will continue to support China Mobile’s delivery of quality services enabling ultra-broadband mobile access.”

In June last year, China Telecom awarded a contract to Alcatel-Lucent to further boost its broadband capacity and service capabilities. The vendor was also selected as the lead supplier for China Unicom’s expansion of its broadband access network using GPON technology across 29 provinces in November 2011.

However, a report by news agency Reuters in August this year claimed that half of China Mobile’s LTE infrastructure contracts have been won by local suppliers Huawei and ZTE. Ericsson, Alcatel Lucent and NSN have picked up around ten per cent of the business each with their Chinese competitors bagging 25 per cent apiece, Reuter said, adding that the combined value of China Mobile’s LTE contracts is $3.2bn.

In June this year, Alcatel-Lucent announced its strategy to reposition itself as a specialist in IP networking and fixed and mobile ultra-broadband access, following the lead of rival NSN. The announcement was followed in October by news that the vendor will cut 10,000 jobs worldwide by the end of 2015 as part of its restructuring plan.