Alcatel Lucent ADRs Edge Higher on Deal to With Deutsche Telekom

Alcatel Lucent (ALU) American depository shares were higher in recent pre-market trade after the network infrastructure provider said it has signed a contract with German telecommunications company Deutsche Telekom to deliver the world’s first LTE ground network which communicates with airplanes and complements satellite services from Inmarsat. The network is meant to meet the increasing demand for broadband data connectivity on European flights. The financial terms of the deal were not disclosed.

The European Aviation Network will consist of an LTE ground network component, provided by Alcatel-Lucent — using its adapted radios and IP Mobile Core — combined with a satellite network component.

Deutsche Telekom and Inmarsat recently announced a strategic partnership for the European Aviation Network to develop and commercially roll-out the network in Europe with a test flight program planned for the hybrid LTE and satellite network in 2017.

ALU is trading above the mid-point of the 52-week range between $2.28 and $4.96.

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