Lucent signs deal to become Unicom's perferred networking partner.
JohnG
Monday June 5, 10:17 pm Eastern Time
Company Press Release
SOURCE: Lucent Technologies
Lucent Technologies and China Unicom Form Strategic Alliance to Address Opportunities in Next-Generation
Networking
NEW YORK, June 5 /PRNewswire/ -- Lucent Technologies (NYSE: LU - news) announced today that it has
signed a Strategic Technology Partnership Agreement with China United Telecommunications Corporation (China
Unicom) to address opportunities in the market for next-generation networking.
China Unicom is one of China's leading service providers. Under the agreement, Lucent will become China
Unicom's preferred vendor. The two companies will work together to develop cutting-edge next generation
networking solutions in areas that include optical, network management, data, wireless, billing systems,
e-commerce, order management, fiber optics and switching.
This will enable China Unicom to quickly and economically deploy the latest technologies in next-generation
networking and offer competitive new services for its customers throughout China. The cooperative agreement
covers a full range of next-generation networks including system design, construction and implementation as well
as associated future expansions, enhancements and upgrades.
The announcement was made at a signing ceremony at the Palace Hotel in New York City. Guests included Li
Zhaoxing, Chinese ambassador to US; Yang Xianzu, chairman, China Unicom; Rich McGinn, chairman, Lucent
Technologies; and Ben Verwaayen, vice chairman, Lucent Technologies.
``Today, the world's communications market is undergoing a networking revolution,'' said Yang Xianzu, chairman
of China Unicom. ``We hope the new model of cooperation will combine advantages from both parties and will
enable us to outperform the increased level of competition in the marketplace. By taking advantage of the most
advanced innovations from Lucent's Bell Labs, China Unicom expects to evolve into a successful
telecommunications provider -- both worldwide and in China.''
``We're very pleased to enter into this agreement with China Unicom. For us both, it's truly a milestone in our
strategic relationship. China is expected to become the world's leading communications market and around the
world Lucent is dedicated to developing alliances with key telecommunications players such as China Unicom.
We believe our joint forces will grow into a fruitful endeavor providing the latest in next generation technologies
to customers in China,'' said Rich McGinn, chairman of Lucent Technologies.
China Unicom and Lucent Technologies will also jointly form a Technology Board to discuss and evaluate new
technologies and new service offerings. To facilitate the functioning of the Board, Lucent Technologies will assign
senior technology advisors to provide to China Unicom in-depth counseling and overall guidance in technology
applications and trends.
Lucent and China Unicom have signed a series of business contracts for a number of key projects in recent years.
In August 1998, Lucent announced it would supply wireless equipment to China Unicom's GSM network in the
Liaoning Province. In September of the same year, Lucent supplied total solutions to China Unicom's first
nationwide long distance network. Upon completion of phase one of the project, Lucent was awarded the
expansion contract in December 1999. Also in late 1999, Lucent announced it would supply ATM and IP
~olutions for China Unicom's broadband multi-service backbone network.
China United Telecommunications Corporation, formed on July 19, 1994, is the only network operator in China
that can provide comprehensive communications services including local, long distance, wireless, data, satellite
and paging services. It has over 250 branch offices and more than 30,000 employees. During the next few years, it
will focus on development in mobile communications, data communications, international communications and the
build-out of quality, superior networks.
By the year 2005, China Unicom's mobile phone subscribers will reach 55 million to 60 million with a market
share of 35%; data communications subscribers will reach 20 million with a market share of 30%; long-distance
IP telephone subscribers will reach a market share of 50%; and the paging subscribers will reach as many as 70
million.
Lucent Technologies (China) Co., Ltd. has seven regional offices, eight joint ventures, three wholly-owned
companies, two Bell Labs branches, and seven R&D centers, with more than 3,500 employees in China. Lucent
China and its joint ventures manufacture a full range of telecommunications systems to serve the China market.
Lucent Technologies, headquartered in Murray Hill, N.J., USA, designs and delivers the systems, software, silicon
and services for next-generation communications networks for service providers and enterprises. Backed by the
research and development of Bell Labs, Lucent focuses on high-growth areas such as optical and wireless
networks; Internet infrastructure; communications software; communications semiconductors and optoelectronics;
Web-based enterprise solutions that link private and public networks; and professional network design and
consulting services. For more information on Lucent Technologies, visit its Web site at lucent.com
SOURCE: Lucent Technologies |
