Telecom company Alcatel-Lucent has unveiled a next-generation chip, FP3, which the company claims will improve data speeds dramatically, while consuming up to 50% less power than equivalent chips in use today.

The Paris-based Alcatel-Lucent said the new chip will open the doors to radical new Internet applications and services with greater capacity.

The company said that the chip will allow service providers to dramatically enhance the infrastructure needed to access rich new online services, from broadcast-quality high-definition video conferencing to applications in the business world.

President of Alcatel-Lucent’s IP Division which developed the chip Basil Alwan said the company has taken a major step forward in the ability of service providers to deliver exciting and compelling applications for use by consumers and professionals alike.

Alcatel-Lucent chief executive officer Ben Verwaayen said the new chip is the key to unlock a new world of online communications.

Verwaayen said, "It’s easy to think the Internet of today does all it will ever be capable of, but we have scarcely scratched the surface of its potential. This chip creates tremendous potential, not just in terms of technology, but in terms of how people connect and interact with each other."