Ahhhhh, what's another BILLION Dollar contract!
Lucent may land $1 bln contract from AT&T-analyst
NEW YORK, March 26 (Reuters) - Lucent Technologies Inc.
(NYSE:LU - news), the world's largest telecommunications equipment
maker, may land a contract worth up to $1 billion from AT&T Corp.
as the long distance company expands its wireless phone network, an
analyst said.
Lucent is expected to beat rivals Northern Telecom Ltd. (Toronto:NTL.TO - news) and Telefon AB L.M. Ericsson Merrill Lynch analyst Joseph Bellace said in a research report, which was issued Thursday.
Lucent declined to comment. AT&T could not be immediately reached for comment.
AT&T said last week at an investor conference the popularity of its Digital One Rate wireless pricing plan and a surge in subscribers had put the company's wireless phone network under strain.
AT&T said it was spending about $2 billion to further build out its wireless network and improve service.
Lucent ''is being viewed very favorably by AT&T wireless for this contract, which is potentially a very large contract that could extend up to $1 billion range,'' Bellace said in the report.
AT&T said last week it was adding extra wireless network equipment from Lucent to fill out its network in overburdened markets. AT&T said it has suffered service problems in areas such as New York City,
suburban Chicago and Washington, D.C.
The company has already improved the network in the Newark, N.J., area and expects to improve service in New York City within the next three months.
Both Lucent and Ericsson provide wireless equipment to AT&T, but Lucent was able to deliver the necessary equipment faster, AT&T said at the conference.
Shares of Lucent closed Friday at $101.94, down 6 cents, while AT&T gained $1.375 to $83.125. Both trade on the New York Stock Exchange.
chris |
