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Tuesday, July 30, 2013
Alcatel Signs Qualcomm Partnership

Struggling telecom equipment maker Alcatel-Lucent said mobile chip maker Qualcomm would buy a minority stake as part of a research partnership.

In addition, the company posted a quarterly sales rise of 1.9 percent to 3.61 billion euros ($4.78 billion). However, recovery at Alcatel-Lucent, which has lost more than $10 billion since it was created through a 2006 merger, will depend in part on whether telecom operators increase overall spending in the coming years to build fast mobile broadband. Alcatel-Lucent is competing with Nokia-Siemens Networks and Ericsson.

Qualcomm will inject 100 million euros in Alcatel by taking a less than 5 percent stake. Alcatel plans to use the mone for research funding. It will help Alcatel develop miniature base stations known as small cells, which are used by telecom operators to boost the wireless coverage of their networks.

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