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September 21, 1999
Ericsson, Lucent Sign Deals
Valued at $330 Million Apiece
Dow Jones Newswires
Telefon AB LM Ericsson and rival Lucent Technologies Inc. said Tuesday
they have signed wireless equipment deals worth $330 million each with
Leap Wireless International Inc. to expand its Cricket Communications Inc.
mobile-phone network.
San Diego-based Leap, which last year was spun off from Qualcomm Inc.,
holds rights to acquire licenses to offer the Cricket service to about 24 million
potential subscribers. The Cricket service, already available in Tennessee,
offers local calls at a low, flat monthly rate.
Sweden's Ericsson will supply and install digital mobile systems able to
handle voice and data services based on the code division multiple access, or
CDMA, 2000 standard, known as 1XRTT. The package includes radio base
stations and controllers and switching equipment.
Cdma2000 is a wireless network standard serving close to 35 million
subscribers world-wide.
Ericsson also will provide vendor financing that will be used for equipment to
expand Leap's wireless network in various markets in the U.S. Details of the
financing, which needs approval from Ericsson's board, weren't disclosed.
Meanwhile, Lucent's $330 million pact with Cricket Communications calls
for the telecom-equipment giant to provide undisclosed financing to the
upstart carrier.
Lucent, Murray Hill, N.J., said it will install CDMA network wireless
systems, including base stations and switches, to help Cricket expand its
wireless network to key markets nationwide.
Cricket also will use Lucent's NetCare professional and network support
services for network buildout, the company said.
Separately, Ericsson said it has started field trials of a new wireless
broadband system with Nextlink Communications Inc., a Bellevue,
Wash.-based fiber-optic network operator.
Ericsson's microwave-based Mini-Link Broadband Access System is being
tested to show how Nextlink's connection capabilities can be expanded. It
also will show how the number of buildings connected directly to local and
national inner-city networks can be increased, Ericsson said.
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