Top 10 Communications Equipment Stocks To Invest In 2016

Top 10 Communications Equipment Stocks To Invest In 2016: Alcatel Lucent SA (ALU)

Alcatel Lucent, incorporated on June 18, 1898, is engaged in mobile, fixed, Internet Protocol (IP) and Optics technologies, applications and services. The Company is a partner of service providers, enterprises, industries and governments worldwide. Alcatel-Lucent includes Bell Labs centres of research in communications technology. Its operations are in more than 130 countries. The Company operates in three business segments: networks, applications, and services. On December 31, 2010, the Company completed the sale of its Vacuum pump solutions and instruments business to Pfeiffer Vacuum Technology AG. In September 2010, the Company acquired OpenPlug, a mobile software and applications development tools vendor. In June 29, 2010, the Company acquired ProgrammableWeb.

During 2010, the Company launched the Digital Media Store, a multicontent digital storefront that allows service providers to deliver content to end-users. Launched during 2010, Optism is a permissi on-based mobile marketing solution. During 2010, it launched Alcatel-Lucents Mobile Wallet Service (MWS), which allows the mobile operator to leverage its secure network to deliver a mobile payment capability through a mobile handset. During 2010, it also launched Alcatel-Lucents Application Exposure Suite to facilitate the development of new services by third-party application developers and content providers.

Networks Segment

The Networks segment supplies a portfolio of products and offerings used by fixed, wireless and converged service providers, as well as enterprises and governments for their business communications. The Companys IP portfolio consists of four product families that deliver multiple services, including broadband triple play for residential customers; Ethernet and IP Virtual Private Network (VPN) services for Enterprise customers, and wireless second-generation (2G), third-generation (3G) and lon! g term evolution (LTE) br oadband services for mobile operators. The main product families include Internet Protocol/Multiprotocol Label Switching (IP/MPLS) service routers, Carrier Ethernet service switche, Multi-service wide-area-network (or MS WAN) switches and Content Delivery Network (CDN) appliances.

Internet Protocol/Multiprotocol Label Switching (IP/MPLS) service routers direct traffic within and between carriers national and international networks to enable delivery of a range of IP-based services (including Internet access, Internet Protocol TV (IPTV), Voice over IP (VoIP), mobile phone and data, and managed Enterprise VPN services) on a single common network infrastructure with superior performance, with application intelligence, and with scalability (such as the simultaneous support of many diverse types of traffic and customers); Carrier Ethernet service switches. Carrier Ethernet service switches enable carriers to deliver residential, business and wireless services, an d these products are mainly used in metropolitan area networks; Multi-service wide-area-network (MS WAN) switches. Multi-service wide-area-network (MS WAN) switches enable fixed line and wireless carriers to transition their existing networks to support newer technologies and services, and Content Delivery Network (CDN) appliances. Content Delivery Network (CDN) appliances distribute and cache (store) Web and video content.

The Companys Internet Protocol/Multiprotocol Label Switching (IP/MPLS) and Carrier Ethernet products are designed to facilitate the development and availability of applications for the more participatory and interactive Web 2.0 business and consumer services. Its service routers are particularly well suited to deliver complex services to business, residential and mobile end-users. Its IP/MPLS service routers and Carrier Ethernet service switches are often used in conjunction with its DSL and Gigabit Passive Optical Network (GPON) access p roducts to deliver these newer trip! le-play s! ervices, or with its wireless access products to deliver LTE solutions, or with its Dense Wave Division Multiplexing (DWDM) and optical switching products to deliver converged backbone transformation solutions for optimizing IP transport. Its Optics division designs and markets equipment for the long distance transportation of data over fiber optic connections via land (terrestrial) and under sea (submarine), as well as for short distances in metropolitan and regional areas.

The Companys transport portfolio also includes the microwave wireless transmission equipment. Its terrestrial optical products offer a portfolio designed to seamlessly support service growth from the metro to the network core. With its products, carriers manage voice, data and video traffic patterns based on different applications or platforms and can introduce a range of managed data services, including multiple service quality capabilities, v ariable service rates and traffic congestion management. These products allow carriers to leverage their existing network infrastructure to offer these new services. Its submarine cable networks can connect continents (using optical amplification required over long distances), a mainland and an island, several islands together, or many points along a coast. It offers a portfolio of point-to-point microwave radio products meeting both European telecommunications standards (ETSI) and American standards-based (ANSI) requirements.

The Companys Wireless All Around message developed during 2010 is a combination of wireless and IP products. The version of CDMA technology, known as 1X EV-DO Revision A, enables operators to offer two-way, real-time, high-speed data applications, such as VoIP, mobile video, push-to-talk and push-to-multimedia. The introduction of High Speed Packet Access (HSPA) and HSPA+ (the latest evolutions of W-CDMA technology) on networks and devi ces has led to increases in data speeds available to broadband devices. The Company develops mobile radio ! products ! for the second generation (2G) Global System for Mobile communications (GSM) standard, including General Packet Radio Service / Enhanced Data Rates for GSM Evolution (GPRS/EDGE) technology upgrades to that standard.

LTE offers service providers a compelling evolution path from all existing networks (GSM, W-CDMA, CDMA or WiMAX) by simplifying the radio access network and converging on a common IP base. RFS designs and sells cable, antenna, tower systems and their related electronic components, providing an end-to-end suite of radio frequency products. RFS serves original equipment manufacturers (OEMs), distributors, system integrators, network operators and installers in the broadcast, wireless communications, microwave and defense sectors. Specific applications for RFS products include cellular sites, in-tunnel and in-building radio coverage, microw ave links, television and radio. The Company offers products that extend from legacy switching systems to IP multimedia subsystem (IMS) solutions for fixed, mobile, and converged operators. It has deployed its next-generation network (NGN) products in more than 170 fixed NGN networks, and it has provided the core network for more than 66 full IMS fixed and mobile networks. Its fixed access solutions allow carriers to offer triple-play services over a single access line. Its carrier customers are offering both residential and business customers multiple services, such as a number of broadcast channels, video on demand, high definition television (HDTV), VoIP, high speed Internet, and business access services.

Applications Segment

The Applications segment develops software-based applications and solutions that contribute to the personal communications for users. The Applications group is divided into two businesses: Enterprise Applications and Network Applications. The Enterprise Applications business includes its IP-based communications and collaboration applications for enterprises, including the Genesys contact cent! er busine! ss. The Network Applications business develops applications used by service providers to deliver a range of services to their customers, and also includes Motive, which provides software for service providers to remotely manage their customers at-home networks, networked devices and broadband and mobile data services. During the year ended December 31, 2010, its Applications segment accounted 12% of its total revenue.

The Applications segment is investing resources in next generation collaboration and communications systems offered by its Enterprise Applications division; customer contact, customer engagement and service management areas addressed by its Genesys and Motive businesses; carrier applications, such as communication and messaging, next-generation telephony, digital medi a and multi-screen delivery of content and personalized advertising, device agnostic location based address book services, and technologies, such as Long Term Evolution (LTE), IP multimedia subsystem (IMS), and Application Enablement.

Services Segment

The Services segment is focused in helping the service provider and customers realize the potential of media, information technology (IT) and telecommunications services and technologies. These services address the lifecycle of its customers networks and operations, and encompass business consulting, systems design and integration, maintenance and managed services. The service offerings are organized around four areas: network and system integration, managed and outsourcing solutions, multi-vendor maintenance, and product-attached services.

The Company competes with Avaya, Cisco Systems, Ericsson, Fujitsu, Huawei, ZTE and Nokia Siemens Networks.

Advisors' Opinion:

• [By Inyoung Hwang]

  EDF, Europes biggest power generator, and Alcatel-Lucent (ALU) SA, a French maker of phone equipment, jumped more than 7 percent as profit beat analysts estimates. Barclays sank the most in 13 months after announcin! g a right! s offering and saying income fell. K+S AG, Europes largest potash producer, plunged 24 percent as OAO Uralkali ended a deal that controlled supplies of the fertilizer ingredient from the former Soviet Union.

• [By WALLSTCHEATSHEET]

  Alcatel-Lucent is a provider of mobile and communications solutions to growing businesses and consumers worldwide. The stock seems to have established a price value zone and is now headed higher. Over the last four quarters, earnings and revenue figures have been declining which has produced unhappy investors in the company. Relative to its peers and sector, Alcatel-Lucent has been a year-to-date performance leader. WAIT AND SEE what Alcatel-Lucent does in coming quarters.

• [By Marie Palumbo]

  Recently, French telecommunications equipment firm Alcatel-Lucent (NYSE: ALU  ) announced a plan to cut about $1.34 billion of annual costs and sell around $1.34 billion in assets. CEO Michel Combes said that Alcatel will lean more on its Internet Protocol routing business one of Alcatel's more successful segments.

• [By Rich Smith]

  AT&T's (NYSE: T  ) announcement of a $22 billion, three-year-long program of capital investment was supposed to save the telecom equipment industry. So far, it seems only Nokia (NYSE: NOK  ) and Cisco (NASDAQ: CSCO  ) are thriving. Meanwhile, erstwhile industry giant Alcatel-Lucent (NYSE: ALU  ) is failing fast, as revenues fall, profits disappear, and cash vaporizes.

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/top-10-communications-equipment-stocks-to-invest-in-2016.html