Next Generation 3G Rollout:
The following is NT/LU specific, it represents substantial contracts for next generation products in the communications industry-
Sprint Hands Out $2B to Lucent, Nortel for 3G
Jun 28, 2001 (NewsFactor.com via COMTEX) -- In its quest to be the first to
bring 3G (third generation) wireless services to market in the United States,
Sprint PCS (NYSE: PCS) handed out US$2 billion in network equipment contracts
divided evenly between Nortel Networks (NYSE: NT) and competitor Lucent
Technologies (NYSE: LU).
Under the terms of the three-year agreements, Nortel and Lucent will make
high-speed 3G data service a reality for Sprint, but the companies also will
supply equipment and services to expand Sprint's wireless network capabilities.
"3G is only a portion of the Nortel and Lucent deals," Sprint PCS spokesperson
Dan Wilinsky told Wireless NewsFactor. Most of the deal, he noted, entails
adding capacity and providing technical services.
On Track
Ultimately, 3G will let wireless users harness many features of the Internet --
up to and including receiving streaming color video on a mobile phone, or even
videoconferencing.
Wilinsky said this deal will keep Sprint on track to offer 3G tests in a handful
of markets toward the end of this year -- and to launch commercial availability
by the middle of 2002.
"This agreement is to support Sprint's planned enhancements to its wireless
network infrastructure and is a key part of its migration to third-generation
services," Lucent spokesperson Mary Ward told Wireless NewsFactor. She also
noted that part of this deal will help Sprint expand its footprint.
Upgrading Base Stations
As part of its agreement with Sprint, Nortel said it will deploy radio base
stations and intelligent core networking equipment -- both key parts of Sprint's
migration to 3G services. In fact, Nortel and Lucent are scheduled to begin 3G
upgrades later this year to base stations in Sprint's existing PCS network.
The $1 billion agreement extends and expands the existing five-year relationship
between Nortel and Sprint, according to Nortel.
Lucent said it, too, will deploy base stations, mobile switching centers and
wireless intelligent network software on the Lucent segments of Sprint's
wireless network. The deal also calls for Lucent to provide professional
services -- such as equipment engineering, installation, cell site optimization
and project management -- for network deployment.
Wilinsky said the contracts with Lucent and Nortel are divided by geography, not
technology. In fact, both companies are using CDMA (code division multiple
access)-based technology in the network upgrades. According to Lucent, the
system will be CDMA2000 1x -- based on an internationally adopted standard of
the International Telecommunications Union, an arm of the United Nations.
Big-Money Deals
Sprint's deal with Lucent and Nortel comes about three months after one of its
competitors tied up loose ends on a similar upgrade.
In March, Verizon Wireless said it had inked a $5 billion, three-year deal with
Lucent for network upgrades that will add to Verizon's call capacity and speed
deployment of its 3G wireless services. That contract turned Lucent into Verizon
Wireless' largest supplier of 3G network infrastructure.
According to Verizon, it will start offering the first phase of its
next-generation technology, using CDMA2000, later this year.
Although carriers are racing to bring 3G to market, analysts believe the
technology will not gain market share for another few years.
Cahners In-Stat Group predicted 3G services will make up just 4.7 percent of the
worldwide wireless market this year -- but the research firm said it sees them
gaining up to 50 percent of the market by 2005.
"3G is not for those with weak hearts or shallow pockets," In-Stat principal
analyst Ray Jodoin said when the company released its findings. That seems
evident from the cash-laden deals Verizon Wireless and Sprint PCS had to sign.
By Dan McDonough, Jr.
URL: sprintpcs.com
nortel.com
lucent.com
verizonwireless.com
Copyright (C) 2001, NewsFactor Network. All rights reserved
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