& cplSiteName &

AlcaLu's Small Cell Menu: Stake and Chips

Ray Le Maistre
7/30/2013
50%
50%

Alcatel-Lucent confirmed its new "redefined partnership" with Qualcomm Inc. Tuesday morning, noting that the deal is set to be the first of a number of such relationships. (See AlcaLu, Qualcomm Team on Small Cells.)

News of the relationship first broke late Monday and was confirmed as AlcaLu reported its second quarter financials. (See Report: Qualcomm to Take Small Cell Stake in AlcaLu and Charges Slam AlcaLu's Q2.)

The two companies are to collaborate on the development of multimode (3G, 4G, Wi-Fi) small cells designed to enhance wireless broadband coverage and capacity in dense urban areas and inside buildings. They are jointly investing in a small cell R&D program that brings together AlcaLu's lightRadio radio access network (RAN) architecture with Qualcomm's small cell chips.

AlcaLu is not divulging any financial details but is not disputing the Financial Times report that Qualcomm's R&D investment will be worth more than €100 million ($133 million). That R&D investment is separate from the equity element of the new relationship: Qualcomm is buying a small stake in Alcatel-Lucent, a move that does not involve the issue of any new shares. But as the stake is smaller than 5 percent, the company is not obliged to share any details.

So are there any other similar R&D-plus-equity investment deals in the pipeline? On Tuesday's second quarter conference call, CEO Michel Combes noted that he had envisaged between three and five relationships, but added that he is focused "on the content of the partnerships rather than the number of them ... the driver is the industrial logic."

Further collaborations are likely to be announced "with other industry names" in the coming quarters, he added, noting that the aggregate equity stake sold through such relationships would not total more than 5 percent of AlcaLu's capital.

Combes added that the Qualcomm relationship should result in a faster time to market for multimode small cells, initially for enterprise deployments, followed by products for residential deployments and later, possibly, even for metro area products.

"We expect to be quicker to market with a best in class product. Qualcomm has a very efficient chipset with low power consumption. We expect to be first to market with multimode small cells," added the CEO. (See SpiderCloud: Cisco 'Naïve' on Small Cells.)

So which other "names" might end up with a small stake in AlcaLu? Spokesman Simon Poulter told Light Reading that while there are no specific names that can be shared currently, he noted that AlcaLu is looking for further "redefined partnerships ... taking an existing relationship to a new level."

— Ray Le Maistre, Editor-in-Chief, Light Reading

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Ray Le Maistre
50%
50%
Ray Le Maistre,
User Rank: Light Sabre
8/5/2013 | 6:30:45 AM
re: AlcaLu's Small Cell Menu: Stake and Chips
haha - no worries. we will very soon have a new message board interface that will be easier to use.
sfxu_pisces
50%
50%
sfxu_pisces,
User Rank: Light Beer
8/5/2013 | 6:00:01 AM
re: AlcaLu's Small Cell Menu: Stake and Chips
Ok, My fault, I do not want to vote it down, I just saw the ... and a downside arrow, I assume some of your comment was hidden and have to click the downside arrow to see all of them. :(
MordyK
50%
50%
MordyK,
User Rank: Light Sabre
7/30/2013 | 5:55:41 PM
re: AlcaLu's Small Cell Menu: Stake and Chips
ALU wasn't getting much adoption of its femto chips so this makes sense, but I wonder how this will effect their position long term with other vendors...
Sarah Thomas
50%
50%
Sarah Thomas,
User Rank: Blogger
7/30/2013 | 2:52:37 PM
re: AlcaLu's Small Cell Menu: Stake and Chips
This is a really interesting partnership. As I wrote about earlier this month, Qualcomm is making big strides with Wi-Fi through the CnE tech in its chips: http://www.lightreading.com/bl.... That's knowledge that will come into play in multimode small cells. This partnership will be a big boon to AlcaLu.
Ray Le Maistre
50%
50%
Ray Le Maistre,
User Rank: Light Sabre
7/30/2013 | 1:15:56 PM
re: AlcaLu's Small Cell Menu: Stake and Chips
Mobile was an area where there were a lot of doubts being cast on Alcatel-Lucent's potential longevity -- this relationship gives it much greater credibility and could be a critical landmark in the lightRadio story. Qualcomm will want to see this fly...
Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Telecom Innovators Video Showcase
Mavenir on RCS Cloud Platform & Multi-ID

7|10|17   |     |   (0) comments


Guillaume Le Mener, head of marketing and corporate development at Mavenir, discussed RCS and the recent launch of Multi-ID, which supports T-Mobile's DIGITS, the revolutionary new technology that breaks down the limitation of one number per phone and one phone per number.
LRTV Custom TV
ADTRAN Executive Outlines Trends in Next-Generation 10-Gigabit Cable Networks

7|10|17   |     |   (0) comments


Hossam Salib, VP of Cable and Wireless Strategy at ADTRAN, outlines key trends as MSOs begin to deploy next-generation Gigabit and 10-Gigabit cable networks. In the interview, Hossam outlines the advantages of a Fiber Deep architecture, FTTH options including EPON and RFoG, and the importance of SDN and NFV in building next-generation high-bandwidth cable networks.
LRTV Interviews
Global Capacity: Bandwidth Demand Driving Ethernet Growth

7|6|17   |   6:37   |   (0) comments


At Light Reading's Big Communications Event in Austin, Texas, Global Capacity's VP of Marketing Mary Stanhope talks about how the demand for bandwidth is changing the way service providers deliver broadband services.
LRTV Interviews
Colt's Services Chief on Digital Delivery

7|5|17   |   16:12   |   (0) comments


Rogier Bronsgeest, the chief customer experience officer (chief CEO!) at Colt, discusses the way in which the service provider interacts with its customers these days and his aggressive net promoter score (NPS) targets.
Women in Comms Introduction Videos
BT VP: Women Should Fill Security Talent Gap

7|5|17   |   6:00   |   (2) comments


By 2020 there will be six security jobs for every qualified worker, and Kate Kuehn, vice president of Security for BT in the Americas, says BT wants to encourage women to fill the shortage in jobs.
LRTV Interviews
Colt Sales Exec on Services Trends

7|4|17   |   12:59   |   (0) comments


Colt's sales director for enterprise, James Kershaw, sheds some light on the services currently in demand and how network upgrades are influencing customer demand.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Mobile to Power Online Video Consumption – Zenith
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 7/19/2017
Can Mushroom Sprout in Crowded SD-WAN Field?
Carol Wilson, Editor-at-large, 7/18/2017
AI Will Be Ubiquitous in 2020 but Overhyped in 2017 – Gartner
Sarah Thomas, Director, Women in Comms, 7/18/2017
BBC Head: We Must Reinvent Broadcasting for a New Generation
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 7/21/2017
Qualcomm Takes Q3 Pummeling From Apple
Iain Morris, News Editor, 7/20/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Fuzzy Quick Fix Click Here
If you can't access it, is it really broken?
Latest Comment
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.