(UPDATE) Lucent Wins Telefonica Pact To Build Wireless Networks In Brazil
Dow Jones Online News, Tuesday, October 27, 1998 at 11:45
SAO PAULO -(Dow Jones)- Lucent Technologies Inc. Tuesday said it was
awarded a contract by Spain's Telefonica SA to build wireless networks
based on code division multiple access, or CDMA, technology in the
Brazilian states of Rio de Janeiro and Sergipe. Financial terms weren't
disclosed.
The pact comes about three months after Telefonica (TEF) successfully
bid for the rights to provide wireless services in the two states
following the Brazilian government's privatization of Telecomunicacoes
Brasileiras SA, or Telebras.
Lucent (LU), one of the world's leading manufacturers of
telecommunications equipment, last week reported a
stronger-than-expected 48% jump in profit, to $545 million before items,
for the third quarter on a 22% revenue increase that stemmed in part
from robust sales of wireless systems and switching equipment in
international markets.
The growth came as Lucent benefited from a string of acquisitions in
the last few years aimed at bolstering its arsenal of data-networking
products. Those deals included the April purchase of Yurie Systems, a
small but fast-growing networking firm, for $1 billion, and last year's
purchases of Octel Communications Corp., Prominent Corp. and Livingston
Enterprises Inc.
The voice and data-networking industries are rapidly converging as
companies race to develop gear that can handle voice, video and data
simultaneously. Lucent is broadening its line of data-networking
products in order to help telephone companies manage the exploding
streams of data, voice and video traffic traversing their networks. Its
primary rival, Cisco Systems Inc. (CSCO), is going after those same
customers with its own line of routers, switches and other
data-networking gear.
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