[Lucent Technologies To Acquire HP's Fixed Wireless Broadband Unit and Establish New Silicon Valley Division]
MURRAY HILL, N.J.--(BUSINESS WIRE)--February 17, 1998--To build its position in the emerging fixed wireless broadband market, Lucent Technologies today announced that it will acquire the Hewlett-Packard Company's LMDS (local multipoint distribution service) Wireless Business and launch a new Wireless Broadband Networks (WBN) Division in Milpitas, Calif. The LMDS business unit, currently part of HP's Video Communications Division, is a leader in next generation microwave radio technology.
Lucent's WBN division will design, manufacture and deploy wireless broadband access networks, including LMDS, that will enable service providers world-wide to offer high-speed data, voice, and video services to businesses without the need to connect buildings to cables or wires. This new division will also draw upon the resources of Bell Labs and technology partners in Silicon Valley and elsewhere.
Lucent said that the technology will use antennas to relay data, voice and video directly into the wireline network. It will allow wireless access to networks at high speeds -- up to 45 megabits per second (Mbps), the equivalent of 30 times the speed of a T1 line or over 1,500 times the speed of conventional PC modems today. Wireless broadband access is expected to become one of the fastest-growing wireless markets.
The Strategis Group estimates that the U.S. infrastructure market for LMDS, one frequency band of wireles broadband, will grow to at least $8 billion in the next ten years.
"Lucent's initiatives will help to extend its leadership position in wireless technology. We will enable competitive local exchange carriers, Internet service providers, PTTs and new network operators to incrementally expand their networks to meet growing customer demands," said Larry Schwerin, general manager, Lucent Wireless Broadband Networks. "This technology will hold down costs, because service providers, such as local and long-distance carriers, will be able to deploy wireless broadband networks without the time and expense of laying down a wireline network."
"HP recognized the importance of broadband wireless technologies early on," said Byron Anderson, vice president and general manager of HP's Microwave and Communications Group. "It's becoming increasingly clear, however, that our customers need end-to-end solutions that are best provided by network integrators. We believe Lucent is well positioned to take what we have done and make it successful in the marketplace."
"Lucent's strengths in network integration and HP's expertise in microwave technology will be hard to beat," said Schwerin. " We're looking forward to working together to become the global leader in wireless broadband access."
Lucent said this technology will be important in those global markets where communications infrastructures are being built or modernized because it is easier to install than conventional wireline networks. The technology initially will be aimed at businesses in metropolitan areas, enabling them 'to pay as they grow' by obtaining only the bandwidth they need and incrementally expanding it as their needs increase.
This breakthrough technology has yet to be widely deployed in the industry.
Terms of the contract were not disclosed.
For further information from HP, please contact John McCreadie at 408/553-7342 (or via e-mail at john-mccreadie@hp.com) or Mary Lou Simmermacher at 650/857-7794 (or via e-mail at marylou_simmermacher@hp.com).
CONTACT:
Paula Horii
908/582-5522 (office)
908/301-0344 (home)
phorii@lucent.com
or
Gary Bonham
510/815-8223 (office)
510/484-5688 (home)
gbonham@lucent.com |
