Friday, February 25, 2011

Will Alcatel-Lucent's (NYSE:ALU) 2.5" Cell Tower Catch On?

Almost everything electronic—modems, PCs, cellphones—becomes dramatically smaller and more powerful each year. Not cell towers. They're still big, ugly, and expensive. Most were designed with the simple goal of transmitting plain old phone calls, so towers are easily overwhelmed by smartphone users who now want to not only call grandma but also upload photos and stream TV shows. The current solution to network congestion is "building bigger and bigger cell towers in more places," says the president of Alcatel-Lucent's (NYSE:ALU) wireless division, Wim Sweldens. That's cost-prohibitive in vast rural expanses and pretty much impossible in dense urban areas. "It's no longer sustainable," he says.

On Feb. 7, Alcatel-Lucent (ALU) introduced a Rubik's cube-sized device called lightRadio that could help bring an end to the bigger-is-better approach. Most of today's cell towers are 200-foot monsters topped with an unsightly gangle of antennae. Each lightRadio unit measures 2.5 inches across and weighs just 10.5 oz. That compact package contains radios and antennae for each of the major cellular technologies—2G, 3G, and LTE. Carriers can plop them wherever they need more coverage, so long as an electrical source is available—on telephone poles, building rooftops, and bus stop shelters. "This will dramatically change the way mobile networks are built," says Sweldens.






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