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Lucent may catch $1 billion AT&T contract
By Bloomberg News
Special to CNET News.com
March 25, 1999, 4:15 p.m. PT
Lucent Technologies, the world's largest maker of phone-equipment, is likely to win a contract from AT&T to supply
about $1 billion of cellular network equipment, an analyst said.
Lucent, AT&T's former equipment arm, is seen beating out rivals Northern Telecom and Ericsson for the order, Merrill Lynch
analyst Joseph Bellace said in a report.
Lucent officials declined to comment, and AT&T was unavailable.
AT&T, the No. 1 U.S. long distance company, is pushing to expand its network to meet demand for
its popular Digital One Rate calling plan, which charges a single rate for calls anywhere in the United
States. The company has said it plans to spend about $2 billion this year to beef up its wireless
business.
"There is an opportunity for a major contract award to address this problem," analyst Bellace wrote.
Lucent "is being viewed very favorably by AT&T Wireless for this contract."
Last week, Michael Keith, president of AT&T business services, said Ericsson has been slow to
deliver equipment in some markets, leading AT&T to use Lucent gear in several cities.
Bo Dimert, who heads Ericsson's North American operations, said his company has had trouble
meeting AT&T's surge in demand, through it's working to solve the problem.
Copyright 1999, Bloomberg L.P. All Rights Reserved.
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