Lucent scores $5 billion contract

(Telephony) Verizon Wireless has signed a three-year, $5 billion contract with Lucent to deploy cdma2000 3G1XRTT, its first phase of 3G technology. The carrier expects to begin deployment later this year. For Lucent, which, like other tech companies, has had a rough ride in the stock market, this deal came as a welcome relief.

“This is our largest wireless contract and our largest announced contract to date,” said a spokeswoman for Lucent. “If you look at the relationship we have with Verizon Wireless it is longstanding. We have the products and technology they are looking for.”

As part of the agreement, Verizon Wireless will purchase multiple products and systems from Lucent’s portfolio, including Bell Labs-developed software that is designed to expand wireless coverage, increase capacity, and support high-speed data and mobile Internet applications.

The deployment will include products from Lucent’s 3G-ready mobile switching centers and base stations, as well as softswitch-based access and transport systems for IP and ATM network applications. The carrier also is planning to deploy some of Lucent’s mobile Internet enhanced services.

In June, Lucent was named a primary supplier to Verizon Wireless’ 3G mobile network and the companies signed a letter of intent at the time worth up to $1.5 billion. This most recent agreement is above and beyond that, the spokeswoman said.

This upgrade is expected to double the carrier’s existing network voice capacity and increase data-transmission speeds by nearly ten times, she added. Verizon Wireless also intends to deploy cdma2000 1XEV-DO, which is compatible with existing and new base stations and which allows the transmission of graphic-intensive files or streaming video downloads.