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May 21, 2012 -- Updated February 14, 2012 13:32 HKT

Sprint Nextel Corp. (NYSE:S) and Alcatel-Lucent (NYSE:ALU)

Alcatel-Lucent the leader in wireless fight

S, ALU, GOOG, AAPL, GOOG, CSCO

Sprint Nextel Corp. (NYSE:S) is in talks to use new Alcatel-Lucent (NYSE:ALU)telecommunications gear designed to help wireless networks handle more calls. The discussions reflect the industry’s race to avert a capacity crunch for mobile service.

Alcatel-Lucent lightRadio, introduced a year ago, is a Rubik’s Cube-sized device that contains radios and antennae and can be mounted on rooftops, phone poles and bus shelters to expand a network’s capacity in a given spot. LightRadio is one of several new technologies created to help the mobile-phone industry cope with the rising tide of calling and data that’s putting a strain on mobile networks just as the wireless airwaves, or spectrum, used to carry traffic grow scarce.

As consumers do more Web surfing and application downloading on devices such as Apple Inc. (NASDAQ:AAPL)’s iPhone and tablets using Google Inc. (NASDAQ:GOOG) Android software, mobile-data traffic will surge 26-fold in the 5 yrs through Y 2015, Cisco Systems Inc. (NASDAQ:CSCO) estimates. And with limited spectrum available, mobile-service providers are looking for ways to squeeze more from existing capacity.

That has Alcatel-Lucent and other gear makers racing for part of the US$36-B that Ovum predicts US phone companies will devote to capital spending in Y 2012.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
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