On Thursday, Alcatel-Lucent (ALU) announced that it has entered into an agreement to provide network equipment to China Mobile (CHL). The news sent ALU stock surging about 5% in pre-market trading.
The deal, valued at 750 million euros, is a one-uear “comprehensive frame agreement” under which ALU will deliver equipment to migrate China Mobile to “an all-IP ultra-broadband network.” The deal between ALU and China Mobile was announced during Chinese president Xi Jinping’s visit to France. China Mobile is the world’s largest wireless carrier with more than 700 million subscribers.
Last year, China Mobile tapped ALU to deliver technology for the carrier’s new 4G/LTE network. With the new agreement, ALU will continue to be a leading supplier of IP networking and ultra-broadband access technology to China Mobile.
Early last year, ALU CEO Ben Verwaayen, who had headed the company since 2008, was ousted amid continuing losses and restructurings at the French telecommunications giant.
In Octover, ALU said it planned to eliminate 10,000 jobs as part of a plan to trim costs and refocus the company toward more profitable businesses.
ALU stock closed at $3.69 a share on Wednesday. ALU shares have gained more than 180% over the past year. CHL stock was unchanged in pre-market trading on Thursday.