China Mobile selects Alcatel-Lucent for strategic transformation to all-IP ultra-broadband network

Alcatel-Lucent and China Mobile sign comprehensive frame agreement

April 2, 2014

Alcatel-Lucent (Euronext Paris and NYSE: ALU) and China Mobile (CMCC), the world’s largest mobile operator, today announced a one-year comprehensive frame agreement valued at up to Euro 750 million to provide technology that will move the world’s largest mobile service provider to an all-IP ultra-broadband network paving the way for future network functions virtualization (NFV) and cloud-based services.

The announcement coincides with a visit to France by Chinese president Xi Jinping to commemorate the 50th anniversary of French-Chinese diplomatic relations. Alcatel-Lucent has a long commitment to China and is marking the 30th anniversary of Alcatel-Lucent Shanghai Bell as a major player in China’s telecom industry.

Today’s significant agreement builds on an already long-standing relationship between China Mobile and strengthens Alcatel-Lucent’s critical role in the world’s largest mobile network. In 2013, China Mobile selected Alcatel-Lucent to provide its innovative lightRadio™ 4G TD-LTE overlay, Evolved Packet Core (EPC) and small cells technology to support the new 4G network.

At Mobile World Congress 2014, China Mobile and Alcatel-Lucent demonstrated their progress in the development of network functions virtualization (NFV) for mobile operators. Using Alcatel-Lucent’s virtualized proof of concept LTE radio access network (RAN) Baseband Unit (BBU) and its virtualized evolved packet core (vEPC) in a multi-vendor environment, the companies demonstrated how an open mobile cloud network enhances agility, efficiency and scale.

Key Facts:

  • China Mobile is the world’s largest mobile operator and reaches more than 750 million subscribers across the country.
  • Alcatel-Lucent has had a major presence in China for more than 30 years through Alcatel-Lucent Shanghai Bell.
  • Agreement makes Alcatel-Lucent a key provider of technology ranging from IP networking to ultra-broadband access , including, but not limited to:
    1. Wireless ultra-broadband access technology, such as lightRadio 4G TD-LTE overlay and upgrades to existing networks in preparation for 4G TD-LTE deployment as well as the lighRadio Metro Radio Outdoor (MRO) Small Cells co-created by China Mobile and Alcatel-Lucent.
    2. IP Networking, such as Evolved Packet Core (EPC), IP routing technology and next generation optics transmission, such as OTN 100G technology.
    3. Fixed ultra-broadband access technology, such as GPON.
    4. Professional services.

Quotes:

Michel Combes, CEO of Alcatel-Lucent, said: “This is a significant achievement of Alcatel-Lucent and essentially makes us a key technology provider in virtually every aspect of China Mobile’s growing mobile ultra-broadband network. We have worked side-by-side with China Mobile throughout many developments in mobile technology, including the development of 4G TD-LTE. We are continuing that close collaboration as China Mobile moves to the next level of ultra-broadband through NFV supporting future cloud applications and services.”