NEW YORK (TheStreet) -- Alcatel-Lucent (ALU) was gaining 1.5% to $3.32 Wednesday after announcing a deal with Globe Telecom (GLO) to upgrade the wireless network infrastructure in the Philippine regions of Visayas and Mindanao.
The French telecommunications company will upgrade the WiMax 4G network in the two regions to LTE-TDD and LTE-FDD technologies. The new technologies will provide higher network capacity, faster transmission speeds, and higher bandwidth to help support more users.
Under the agreement, Globe will deploy Alcatel-Lucent's LTE Radio Access Network which should help bring wireless Internet access to people in the "geographically diverse area comprised of 7,107 islands."
"This project not only highlights how our LTE-TDD technology is expanding, but also continues the strong momentum of mobile ultra-broadband access in the Asia-Pacific region," Alcatel-Lucent CEO Michel Combes said.
TheStreet Ratings team rates ALCATEL-LUCENT as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALCATEL-LUCENT (ALU) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself."