Ibexx and thread ---LU on a roll---another 280 million deal --- Tuesday May 19, 9:51 am Eastern Time
Company Press Release
SOURCE: Lucent Technologies
TeleCorp Selects Lucent Technologies to Deploy TDMA-Based PCS Networks in Exclusive Deal Worth $280 Million
WASHINGTON, May 19 /PRNewswire/ -- TeleCorp today announced it has signed an exclusive contract with Lucent Technologies to supply the infrastructure for its PCS networks, based on Time Division Multiple Access (TDMA) technology, in a deal worth $280 million.
TeleCorp, AT&T Wireless' largest affiliate, will provide TDMA-based digital wireless service to customers in New Orleans, Memphis, Tenn., Little Rock, Ark., in areas surrounding Boston and St. Louis, Mo.; and in Puerto Rico. This service area covers more than 15 million people. TeleCorp is a member of the AT&T Wireless Network, and its network will be fully compatible with AT&T's national digital PCS network.
''Lucent's competitively priced PCS platform solution and its proven track- record in building reliable wireless networks around the world are the main reasons we selected Lucent to deploy our network,'' said Gerald T. Vento, CEO of TeleCorp. ''With Lucent's systems conforming to the IS-136 standard, our customers will immediately enjoy the convenience of coast-to-coast roaming on the AT&T Wireless network, just as AT&T Wireless' customers will be able to roam onto our network.''
''We are excited to be working with TeleCorp as it begins building its state-of-the-art TDMA network,'' said Doris Jean Head, Lucent vice president- Emerging Wireless Markets. ''TeleCorp is aggressively moving forward to become a major force in the digital wireless marketplace.''
As part of the agreement, Lucent is providing TeleCorp with up to $80 million in financing for the network construction project.
''Our plans call for an aggressive launch schedule,'' said Tom Sullivan, TeleCorp's executive vice president and general counsel. ''The ability to meet such a schedule is one of the reasons we entrusted Lucent to build our networks.''
TeleCorp's PCS network will utilize Lucent's state-of-the-art TDMA wireless platform, operating in the 1.9 Gigahertz (GHz) frequency. The Lucent platform includes its 5ESS(R)-2000 digital switching system and cell site equipment. In addition, Lucent's TDMA platform takes advantage of the IS-136 TDMA standard Digital Control Channel (DCCH), a signaling system that operates behind the scene and offers a variety of intelligent networking options for network operators. The flexibility of Lucent's wireless platform also allows for the potential use of the switching equipment in wireline applications.
''Lucent's IS-136 platform gives TeleCorp a rich suite of digital services equal to or better than our competitors on the day we launch. Strategically, it also gives us the flexibility to go beyond wireless PCS services in the future,'' said David Knutson, vice president of engineering and operations for TeleCorp.
The Lucent equipment will be deployed in all of TeleCorp's markets, and the switch site construction process is currently underway in New Orleans, Little Rock, Boston and Puerto Rico. TeleCorp's network construction and operation will produce a number of local jobs in the markets. ''In addition to offering a superior wireless service to the people in our markets, TeleCorp will also be creating a significant number of high quality, local jobs in conjunction with our presence in the community and delivery of our service,'' added Knutson.
Headquartered in Washington, D.C., TeleCorp was formed in 1997 by Gerald T. Vento and Thomas H. Sullivan. As AT&T Wireless' largest affiliate, TeleCorp will build and operate digital wireless networks in New Orleans, Memphis, Tenn., Little Rock, Ark., in areas surrounding Boston and St. Louis, Mo.; and in Puerto Rico. This service area covers more than 15 million people. TeleCorp has significant financial support from Chase Capital Partners in partnership with Desai Capital Management Incorporated. Other investors include Entergy Technology Holding Company, Hoak Capital Corporation, J.H. Whitney & Co., MC Partners, Toronto Dominion Securities (USA) Inc., Northwood Ventures and OneLiberty Ventures. Under the leadership of Mr. Vento, a twenty-year telecommunications and cable television industry veteran, and Mr. Sullivan, a telecom legal authority and experienced wireless entrepreneur, TeleCorp has assembled an experienced management team of wireless industry professionals and is moving forward aggressively in network operations, information systems and product development to prepare its network for commercial launch. For more information about TeleCorp, visit the company's web site at telecorp1.com.
Lucent Technologies, headquartered in Murray Hill, New Jersey, designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronics components. Bell Laboratories is the research and development arm for the company. For more information on Lucent Technologies, visit the company's web site at lucent.com.
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