Light Reading

AlcaLu's Small Cell Menu: Stake and Chips

Ray Le Maistre

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
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.
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. :(
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...
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: That's knowledge that will come into play in multimode small cells. This partnership will be a big boon to AlcaLu.
Ray Le Maistre
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...
From The Founder
Steve Saunders provides an overview of white box networking and introduces a new "slim line" version of the OSI 7-layer model.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Custom TV
Delivering Service Agility in the Virtualization Era

11|25|15   |   5.41   |   (0) comments

Interview with Massimo Fatato, WW OSS Business Lead, Hewlett Packard Enterprise.
Wagner’s Ring
How Might Open Source Fail?

11|24|15   |     |   (9) comments

Open source, SDN, and NFV are looking inevitable – but performance, standards proliferation and regulatory capture could derail the movement.
LRTV Custom TV
NFV Lifecycle Orchestration – a Fresh Vision for Telco

11|23|15   |   6.40   |   (0) comments

Simon Osborne, CTO Comptel, and Heavy Reading's Caroline Chappell reveal the business impacts of new SDN and NFV, and what the term service orchestration actually means. Together they define Lifecycle Service Orchestration and how the virtualized future will look for telecoms operators.
Between the CEOs
Cisco's Virtual Role in Saudi

11|20|15   |   12:15   |   (1) comment

Light Reading founder and CEO Steve Saunders talks with Zayan Sadek, Regional Manager at Cisco Systems, about the competitive communications services market and advance of virtualization in Saudi Arabia.
LRTV Huawei Video Resource Center
Huawei Leads With Kubernetes for Cloud PaaS

11|19|15   |   08:26   |   (0) comments

Huawei is looking to Kubernetes as a key tool for building robust open source technologies for customers and partners, said Ying Xiong, chief architect of cloud platform at Huawei, in an interview with Light Reading West Coast Bureau Chief Mitch Wagner at the recent Kubecon conference.
Women in Comms Introduction Videos
WiC in London: The Highlight Reel

11|19|15   |   5:33   |   (1) comment

NetCracker's Mervat El Dabae headlines an inspiring morning in London with help from leading women from Vodafone, TalkTalk, Hyperoptics and Ciena.
LRTV Documentaries
Why Saudi's So Hot for New Tech

11|19|15   |   05:07   |   (0) comments

Light Reading's Steve Saunders reports from Saudi Arabia, a hyper-competitive market desperate to embrace the next generation of communications technologies and services.
LRTV Custom TV
Why Data Models Deliver More Value Than Information Models

11|19|15   |   5.08   |   (0) comments

Stefan Vallin argues that more automation is needed to manage end-to-end services and the hybrid networks they run on, and that data models are key to achieving this.
Telecom Innovators Video Showcase
SDN Management & Orchestration in the WAN

11|17|15   |   7.20   |   (0) comments

Carol Wilson and Packet Design CTO Cengiz Alaettinoglu discuss CSPs' SDN service delivery and assurance requirements. Learn about a modular approach to building automated control, orchestration and management functions for the WAN that are policy- and analytics-driven.
LRTV Custom TV
Flash Networks: Optimizing for Radio Spectral Efficiency

11|17|15   |   3:34   |   (0) comments

Today most optimization vendors only focus on optimizing voice or data. Ofer Gottfried, Flash Networks' CTO, shows how improving data throughput and maximizing spectral efficiency reduces capital and operating expenses while also providing a platform for user engagement.
LRTV Custom TV
Making Pay-TV User Experiences Millennial-Friendly

11|16|15   |   6:42   |   (0) comments

The unique challenge of reaching and engaging Millennials is driving pay-TV video experience transformation that can include higher quality UIs, viewing of multiple content streams at once and seamless transitions between handheld devices and the television.
LRTV Huawei Video Resource Center
Huawei Electric Power Summit 2015 – Addis Ababa, Ethiopia

11|16|15   |   1:28   |   (0) comments

Huawei, together with Ethiopia's Ministry of Water, Irrigation and Electricity, hosted the Huawei Electric Power Summit 2015 in Addis Ababa, Ethiopia. The event gathered industry experts and senior executives of global electric power companies to discuss emerging industry trends including: improvements in new energy conversion efficiency, reduction of line losses ...
Allot MobileTrends Report H2/2015 reveals how daily online behavior can be used to discover smarter ways to profile customers and propose valuable, real-time offers to them.
Hot Topics
Samsung to Sell Wireless Networking Unit?
Dan Jones, Mobile Editor, 11/23/2015
Sprint, Verizon Face Reorganization, Job Cuts
Dan Jones, Mobile Editor, 11/20/2015
Sprint to Get $1.2B From New Leasing Venture
Dan Jones, Mobile Editor, 11/23/2015
How Might Open Source Fail?
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/24/2015
Networking Shines in HP's Gloomy Final Earnings
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/25/2015
Like Us on Facebook
Twitter Feed
December 15, 2015
Virtualizing Cable Services
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders talks with Zayan Sadek, Regional Manager at Cisco Systems, about the competitive communications services market and advance of virtualization in Saudi Arabia.
Mobily CEO Ahmad Farroukh talks to Steve Saunders about the realities of being a mobile operator in Saudi Arabia.
Cats with Phones
Can't Find the Phone on Thanksgiving? Click Here
Check under the cat! (hint: bottom right)
Live Digital Audio

Broadband speeds are ramping up across Europe as the continent, at its own pace, follows North America towards a gigabit society. But there are many steps to take on the road to gigabit broadband availability and a number of technology options that can meet the various requirements of Europe’s high-speed fixed broadband network operators. During this radio show we will look at some of the catalysts for broadband network investments and examine the menu of technology options on offer, including vectoring and for copper plant evolution and the various deployment possibilities for FTTH/B.