AT&T signs deal with Lucent and Nortel
REDMOND, Wash., Aug 27 (Reuters) - In a move to catch up with the demand and relieve strains on its wireless communications service, particularly in big U.S. cities, AT&T Corp. (NYSE:T - news) on Friday said it plans to buy additional infrastructure equipment from Lucent Technologies Inc. (NYSE:LU - news) and Nortel Networks Corp. (Toronto:NT.TO - news).
Although Telefon AB L.M. Ericsson is currently AT&T's largest wireless infrastructure provider, the company said it signed letters of intent with Lucent and Nortel to install new wireless equipment in several North American markets.
AT&T said the expanding relationships would allow it to meet its demand for equipment and network capacity over the next four years for $900 million less than the company previously expected.
Financial terms of the agreements were not disclosed.
AT&T said it would add Lucent Technologies equipment in the metropolitan New York City area and parts of Los Angeles, in addition to the 11 states where Lucent equipment is already being used. It plans to use Nortel's equipment in Arizona, California (including parts of Los Angeles), Nevada, Oregon, and Washington.
Ericsson will continue to supply equipment to about one third of AT&T's service areas, the company said. |
