Lucent, Qwest announce DSL deal

Lucent Technologies and Qwest Communications today announced a deal that would expand Qwest’s high-speed DSL coverage area significantly in 11 of its 14 in-region states and make Lucent a key DSL equipment supplier.

Although neither company would disclose terms of the deal, a Lucent spokeswoman said the agreement is non-exclusive and represents the company’s largest DSL equipment deal to date, both financially and in the number of lines serviced.

“We have large DSL contracts out there, and this one is significantly larger than any deals we’ve announced,” the spokeswoman said. “And we believe it is the largest DSL equipment deal ever in terms of lines.”

Qwest said the agreement will let it add 1.3 million potential DSL customers by the end of this year and another 1.2 million in 2002, bringing its total DSL-capable customers by the end of next year to 6 million.

Despite its reach expanding to 6 million available customers by the end of 2002, the customers are not guaranteed. Murray Smith, vice president of DSL at Qwest, said the company must still compete with DLECs such as Covad Communications and Rhythms NetConnections and cable companies to secure customers.

“We’re just continuing to expand the footprint, so we can give customers a choice whether or not they want to take advantage of high-speed Internet access,” Smith said.

In January, Qwest said it expected to have 500,000 DSL subscribers by the end of 2001. At the end of the first quarter 2001, Qwest reported 306,000 DSL subscribers compared to 255,000 at the end of 2000.

The Denver-based Qwest will use Lucent’s Stringer Access Concentrators, a remote terminal (RT) technology that lets the broadband service provider place DSL equipment outside the typical three-mile distance from a central office to increase the number of homes and businesses served.

Bruce Miller, senior product manager in Lucent’s broadband access group, said the Stinger RT technology essentially is a hardened version of Lucent’s existing Stinger LS product. The RT product has a wider temperature threshold range and can exist in enclosures that do not have central office temperature controls.

“The technology isn’t fundamentally different,” Miller said. “It just… can exist in more harsh climates.”

Qwest is among the first customers to use the new product, which Miller said is primarily targeted at U.S.-based ILECs. Smith said this is Qwest’s first deployment of RT technology for ADSL services. Lucent joins Cisco Systems as Qwest’s two leading DSL providers, he said.

The expansion states are Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, New Mexico, Oregon, Utah and Washington. Qwest said deployment has begun and will be phased during the next two years.