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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: The Phoenix who wrote (10652)	10/25/1999 2:40:00 PM
From: William Hunt	Read Replies (3) \| Respond to of 21876

THREAD--- LUCENT TECHNOLOGIES BUILDS AN INTERNATIONAL LONG DISTANCE 10/25/99 8:28:00 AM Source: Business Wire Gateway and PCS CDMA Wireless Network in Guatemala for Telefonica Business Editors/Telecommunication Writers MURRAY HILL, N.J.--(BUSINESS WIRE)--Oct. 25, 1999--Lucent Technologies (NYSE:LU) today announced that it was selected by Telefonica (NYSE:TEF), through its affiliate in Guatemala, to build a Personal Communications Systems (PCS) wireless network based on code division multiple access (CDMA) and an international gateway to offer long distance services. Quote Snapshot LU 59.69 3.31 Enter symbol: · Symbol Lookup More from CNET Investor Quotes delayed 20+ minutes The project, valued at US$95 million for the initial phases, includes the installation of Lucent's flagship 5ESS(R) Switches, PCS CDMA Minicells, intelligent network software (with TeleCommunication Systems) for short-message services, prepaid services and other value added services, Galaxy(R) Power Systems, as well as NetCare(R) technical expertise, professional and other support services. Lucent also provided an international gateway for long distance services. According to the CDMA Development Group (CDG), CDMA subscriber growth increased 171 percent from June 1998 to June 1999, reaching nearly 35 million global subscribers. With almost two million subscribers, the Caribbean and Latin American regions experienced a 1167 percent or 12-fold increase over the same period. Telefonica launched its PCS CDMA services in Guatemala last week, following its successful bid in June for a Band B license through its Central American subsidiary, Telefonica de Centroamerica. Telefonica already had acquired a Guatemala local telecommunications operator which had all the necessary fixed licenses. Telefonica de Centroamerica already operates Telefonica de El Salvador, where in its first five months of operation it reached 28 percent of the mobile telephony market and 30 percent of the long distance market. "We are extremely pleased to collaborate with Telefonica once again as they continue to expand their services in the Central American region," said Carlos Linares, vice president of Lucent Technologies in Latin America. "This project further strengthens our relationship as we build on the success of the El Salvador network." Last December, Lucent completed the construction of a CDMA wireless network in El Salvador for Telefonica. In March, Telefonica announced that it had selected Lucent to build a PCS CDMA network in Puerto Rico for its affiliate, Telefonica Larga Distancia (TLD), which launched its MoviStar services on the island last month. Additionally, Lucent is supplying CDMA wireless networks to the cellular companies of Telefonica in Brazil. Earlier this year, Lucent and Telefonica also announced that the two companies had signed a Memorandum of Understanding (MOU) to strengthen their strategic relationship by recognizing Lucent as a preferred global communications equipment supplier to Telefonica. Under that MOU, Lucent would offer solutions to Telefonica in such key areas as next-generation data networks, high-capacity optical networks, intelligent networks and Code Division Multiple Access (CDMA) networks. Lucent Technologies is a leading provider of wireless infrastructure equipment utilizing all of the interfaces available in the market today - AMPS, TDMA, CDMA and GSM. An industry leader in CDMA technology, Lucent has more than 160 CDMA networks either in commercial operation or under construction worldwide. Lucent's CDMA networks worldwide handle about 16 million calls per day. In the Caribbean and Latin America region, Lucent Technologies has built CDMA networks in Mexico, Brazil, Argentina, Venezuela, El Salvador, Puerto Rico, and the Dominican Republic. In North America, Lucent is the leading provider of CDMA infrastructure equipment for the largest PCS network providers - PrimeCo Personal Communications, Sprint PCS and others - and for cellular carriers such as GTE, AirTouch and Bell Atlantic Mobile. Lucent Technologies 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 Labs is the research and development arm of the company. Further information about Lucent Technologies is available on the worldwide web at lucent.com. BEST WISHES BILL

To: The Phoenix who wrote (10652)	10/25/1999 2:42:00 PM
From: Mr.Fun	Read Replies (6) \| Respond to of 21876

Lucent has been recognizing revenues at acceptance since before either of us were born, and its customers are accustomed to the contract structure. As you can well imagine, LU gets essentially no returns of CO switches etc, as they are built to specific customer order. An order that ends without customer acceptance likely ends up in litigation or a write off depending on whether it is a customer with which LU intends to do future business. It has absolutely nothing to do with LU's confidence in its ability to deliver and install a solution. Why does Microsoft defer revenue recognition on long-term site licenses? If LU were to suddenly change its policy, it would result in a one-time HUGE quarter, for which they would likely get little credit. At the same time, receivables would rise by 20-30 days and visibility would shrink. BTW sales of professional services to carriers (inc. install/maintain) are growing faster than overall revenues with above average margins. LU sees its support services as an advantage rather than a disadvantage.