Alcatel-Lucent to advance China Mobile and China Unicom’s move to the cloud with ultra-broadband access, IP networking and NFV technology

Alcatel-Lucent (Euronext Paris and NYSE: ALU) has signed comprehensive frame agreements with China Mobile and China Unicom, two of the world’s largest telecommunications operators, to facilitate the transition to dynamic cloud-based networks.

Alcatel-Lucent will support the companies in the delivery of faster, more affordable mobile and fixed Internet connections across the country, as China strives to meet the ever-growing connectivity of people and ‘things’.

Under the agreements - both spanning a year and valued at up to RMB4.53 billion (Eur 656 million) and RMB3.59 billion (Eur 520 million) for China Mobile and China Unicom respectively - Alcatel-Lucent will deliver its mobile and fixed ultra-broadband access, IP routing, agile optical networking and network functions virtualization (NFV) capabilities, as well as Nuage Networks’ software defined networking (SDN) technologies.

The deployment of these technologies will also support China Mobile and China Unicom in meeting commitments to the ‘Broadband China’ initiative which aims to see full broadband coverage across the nation’s rural and urban areas by 2020.

China’s Ministry of Industry and Information Technology has set the target for all the country’s municipalities, city districts and most non-urban households to have access to 100 megabits-per-second (Mbps) fiber by 2017. Within the same timeframe, China also expects residents of major cities to have an average access rate of 30 Mbps, 80% of administrative villages to have fiber coverage, with full 4G mobile access in urban and rural areas.

The agreements, signed today in Toulouse during a visit by Li Keqiang, China’s Premier of the State Council, build on long-standing collaboration between Alcatel-Lucent and the two companies.

Key Facts:

• The frame agreements with China Mobile and China Unicom make Alcatel-Lucent a key technology provider in the execution of the Broadband China initiative.

• Alcatel-Lucent will provide technologies that include:

• 4G TD-LTE and LTE FDD mobile ultra-broadband access

• Gigabit Passive Optical Networks (GPON) and Ethernet Passive Optical Networks (EPON) fixed ultra-broadband access
• Optical transport network and private telecommunications network (PTN) data transmission
• IP routing and switching technologies
• Voice over LTE (VoLTE)
• NFV cloud technologies

• Nuage Networks SDN

• Alcatel-Lucent has collaborated closely with China Mobile throughout many developments in mobile technology and is continuing that collaboration with the operator’s use of NFV technologies to support cloud applications and services.

• At Mobile World Congress 2015, Alcatel-Lucent and China Mobile jointly demonstrated how Alcatel-Lucent’s NFV technologies, including the virtualized Radio Access Network (vRAN) technology could help service providers meet changing market, customer and environmental demands, while dramatically enhancing network and lowering costs.
• Alcatel-Lucent’s agreement with China Unicom underscores the companies’ long working relationship. In October 2014, Alcatel-Lucent announced that it would be delivering its ground-breaking 7950 XRS IP Core Router to China Unicom and other Chinese service providers.
• Alcatel-Lucent is providing both China Unicom and China Mobile with the latest generation of access technologies on the high capacity ISAM access platform, essential for meeting the country’s ambitious broadband targets.
• Alcatel-Lucent has had a major presence in China for more than 30 years through its Alcatel-Lucent Shanghai Bell venture.

Quotes:

Li Huidi, Vice President of China Mobile said : “We have been working closely with Alcatel-Lucent on the development of technologies to help the smooth transition to cloud networks. We are pleased to continue this collaboration and under this agreement we can benefit from Alcatel-Lucent’s leading solutions to help us expand connectivity across the company and enable new efficiencies across our network.”

Michel Combes, CEO of Alcatel-Lucent, said : “This announcement is highly significant as it furthers Alcatel-Lucent’s role as a key technology provider in China and aligns perfectly with our strategy of bringing high-speed ultra-broadband access to open up new opportunities for both service providers and their customers alike. We are very pleased to continue working with both China Mobile and China Unicom to help them deliver on their commitments under The Broadband China’ initiative.”