Re: More Verizon & CDMA2000-1X
>> Lucent and Verizon Partner in Delivering 3G Wireless Solutions
Yankee Group
Research Notes
Week of Jine 20
Last week, Lucent Technologies in tandem with Verizon Wireless announced that a "letter of intent" has been signed with the expectation of a "purchase agreement" on the horizon between the two companies to offer 3G high-speed mobile Internet as well as enhanced data and voice services to both business and residential customers. Verizon Wireless, based in Murray, New Jersey, is the largest wireless provider in the United States with approximately 18 million wireless voice and data customers and close to 4 million pager customers. As a coast-to-coast provider of wireless services, it has been conducting beta trials of QUALCOMM's CDMA2000-1X chip technology, which delivers data transmission rates 10 times faster than that available today of up to 153 Kbps. Of course, this involves network upgrades and circuit card replacements as well as software modifications. CDMA2000-1X promises to double voice capacity without the need to create new base stations, passing both the speed and the savings onto the customer.
Lucent Technologies reported to the Yankee Group that the contract?worth up to $1.5 billion over an estimated two year period shows that Verizon is serious about this initiative. The partnership has great future promise and will go live in the next week, but it will not be offered to customers immediately. Though beta testing has been conducted and peak rates are at 153 Kbps, this is in a test setting. Rolling out the technology to the end user is not yet on the horizon for Verizon, and profits based on the new technology are not likely to be generated for the next two years. The core of this new contract revolves around Lucent's 3G-ready Flexent mobile switching centers, with CDMA base stations using ATM and IP as the transport method of choice.
The Yankee Group believes that this contract keeps Lucent in the number one position for network infrastructure providers. We believe that with a solid execution of this contract, Lucent will maintain that position in network infrastructure. Its positioning outside of network architecture, however, will depend on the success of recently announced deals in Asia and the company's ability to generate new business in Europe over the next two years. <<
- Eric - |
