& 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
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
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.
LRTV Custom TV
Cisco's Innovations in Cable

5|26|16   |   03:18   |   (0) comments


Marc Aldrich from Cisco discusses the latest in security, the evolution and momentum for CCAP and what the industry will be seeing next from Cisco.
LRTV Documentaries
Leading Lights 2016 Highlights

5|25|16   |   02:26   |   (1) comment


Some of the high points from this year's Leading Lights awards dinner at the Hotel Ella in Austin, Texas.
LRTV Documentaries
Light Reading Hall of Fame 2016

5|23|16   |   05:43   |   (0) comments


Find out who has been welcomed into Light Reading's Hall of Fame this year.
LRTV Custom TV
ZTE TM Forum Highlights

5|23|16   |     |   (0) comments


ZTE showcased its new ICT solutions at TM Forum in Nice.
LRTV Interviews
Gamma's MD on the Emergence of UC2

5|20|16   |     |   (0) comments


Gamma Communications Managing Director David Macfarlane believes the unified communications (UC) market has reached a tipping point.
LRTV Custom TV
The Ultimate 5-Minute Guide to Digital Customer Engagement

5|20|16   |     |   (0) comments


In this short video, you will hear all about how Digital Customer Engagement is the key to meeting customer expectations, keeping them happy, and maximizing revenue. VP Product & Marketing at Pontis, Ofer Razon, breaks down for us the five essential capabilities for successful Digital Customer Engagement. Don’t miss!
LRTV Custom TV
NFV in 2016: Part 1 – NFV Use Cases Get Real

5|19|16   |   05:57   |   (0) comments


Consensus is building around the key use cases for NFV, including managed IP services at the network edge and on customer premises, which can generate new revenues from enterprises/SMBs and consumers; Evolved Packet Core to support LTE migration; and adjacent technologies, such as TAS and IMS, to support VoLTE and next-generation charging and policy control ...
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 3

5|19|16   |     |   (0) comments


Steve Vogelsang discusses the challenges of operational transformation and how Nokia helps its customers. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Level 3: Why UC Is In Demand

5|17|16   |   04:12   |   (1) comment


Andrew Edison, Level 3's senior VP of sales, EMEA region, talks about the drivers of growth in the unified communications services market.
LRTV Custom TV
ARM's OPNFV Action

5|17|16   |     |   (0) comments


At the ARM booth at MWC 2016, Joe Kidder and Bob Monkman speak to Light Reading about OPNFV and their upcoming action.
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 2

5|16|16   |     |   (0) comments


Steve Vogelsang gives advice to service providers on how to move to NFV. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Interoute CTO on NFV's Maturity

5|13|16   |   06:46   |   (1) comment


Matt Finnie, CTO at international operator Interoute, explains how NFV has made life easier in terms of logistics and how Interoute can now enable a 'software-defined moment' for its customers.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
December 6-8, 2016,
June 16-18, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
DT: Telcos Must Escape Vendor Prison
Iain Morris, News Editor, 5/24/2016
AT&T to Start 5G 'Friendly' Trial by 2016 End
Dan Jones, Mobile Editor, 5/24/2016
Cisco's Patel Hails 'Microculture' Successes
Iain Morris, News Editor, 5/26/2016
AT&T's Margaret Chiosi Retires
Ray Le Maistre, Editor-in-chief, 5/25/2016
Cable Is Eyeing Its Retail Options
Mari Silbey, Senior Editor, Cable/Video, 5/25/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.