PARIS, Dec. 4, 2012 /PRNewswire/ -- Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that it has been selected by Telefonica, one of the world's leading communications service providers, to upgrade the operator's Internet protocol (IP) networks, initially in Argentina and the Czech Republic, with one of the industry's most powerful core network routers, the Alcatel-Lucent 7950 Extensible Routing System (XRS). This agreement makes Telefonica one of the first service providers in the world to deploy the recently announced core router. This comes as Telefonica prepares for the explosive growth in data traffic expected over the next decade with the rapid uptake of smartphones, tablets and bandwidth-hungry services such as video and gaming. Following the deployment Telefonica will have a high-capacity IP network in these markets to support all of its service offerings, including fixed and mobile broadband and IPTV. Enrique Blanco, Telefonica's Global Chief Technology Officer said: "This collaboration with Alcatel-Lucent is part of a far-reaching network modernization effort which will give us one of the most powerful and efficient IP networks. In order for us to dramatically increase our network capacity and intelligence to address our customers' fast evolving demands we needed the support of a new, truly disruptive solution. The Alcatel-Lucent XRS met this requirement." Rapidly rising demand for online video and data is being driven by smartphones, tablets, connected TVs and other devices, and enabled by faster wireless, fiber and copper broadband access networks. These dynamics are prompting network operators such as Telefonica to increase capacity upgrades in the core of their networks, while also increasing intelligence and capability at the edge. At the same time, the emergence of cloud-based services and personalized content is driving the need for more flexibility in these networks to quickly adapt to the requirements of consumers and businesses.