Alcatel-Lucent Lands $6 Billion Network Expansion Contract From Verizon Wireless - InformationWeek

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Alcatel-Lucent Lands $6 Billion Network Expansion Contract From Verizon Wireless

The three-year deal covers network equipment, software, and services that support ongoing expansion of Verizon's nationwide mobile phone network.

Alcatel-Lucent announced Monday that it has scored a $6 billion contract to continue rolling out infrastructure for Verizon Wireless. The three-year deal covers network equipment, software, and services that support ongoing expansion of Verizon's nationwide mobile phone network.

Lucent, which had been Verizon's primary infrastructure supplier before it merged with Alcatel last year, has played a key role in Verizon's deployment of its CDMA2000 EV-DO Rev, a high-speed data network.

"This is the first big deal from the newly merged Alcatel-Lucent, and it is very good news for the company," said industry analyst Jeff Kagan in an e-mail. "The wireless industry is exploding, and companies like Verizon Wireless are continually upping the ante with new services. Verizon Wireless' ability to compete successfully going forward is tied directly to their ability to wow the marketplace as they have been doing for the last several years." Verizon Wireless, which is jointly owned by Verizon Communications and Vodafone Group, has consistently ranked high in user satisfaction surveys.

Verizon Wireless and Alcatel-Lucent said the new contract will cover the transition of the service provider's network to an all-IP network. New services will include VoIP capability. Alcatel-Lucent's packet switches will be upgraded to enable Verizon to provide mobile video telephony utilizing Alcatel-Lucent IMS products.

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