Alcatel-Lucent and Ericssonclinch AT&T deal to secure NorthAmerican foothold in LTE

no description
of 3
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Related Documents
  Alcatel-Lucent and Ericssonclinch AT&T deal to secure NorthAmerican foothold in LTE Julian Bright15 February 2010  Alcatel-Lucent and Ericsson have struck a blow to NokiaSiemens Networks with a big LTE win, with AT&T. The contract is especially important for Alcatel-Lucent, which continues its resurgence in North America. AT&T Wireless and Alcatel-Lucent have each had their problems toovercome in the past couple of years. Although AT&T says it has the fastest-growing 3G network in the country, and it has benefited from its associationwith the iPhone, its network coverage has been criticized as being too spotty.And Alcatel-Lucent, long a CDMA power, has had to reinvent itself as LTEhas taken hold as the next-generation technology of choice.Both companies, alongside Ericsson, should benefit from their latest alliance.AT&T has chosen to go with its existing network-vendor partners, Alcatel-Lucent and Ericsson, for the rollout of a national LTE network in the US.The operator has selected the vendors to supply it with radio-access-network equipment under a multiyear agreement, and it will begin LTE trials with thetwo suppliers later this year. A commercial launch of LTE services is plannedfor 2011. The financial terms of the agreements have not been disclosed.The two vendors are supplying equipment for AT&T’s 3G network, and theoperator says the decision will enable it to take advantage of compatibilitybetween the suppliers’ 3G equipment and the upgrades for LTE. Starting thisyear, 3G equipment and software delivered to AT&T by the two vendors willbe fully upgradeable to LTE.Ericsson and Alcatel-Lucent were also selected in early 2009 to provideequipment for Verizon Wireless’ initial LTE-network deployments in a deallasting until mid-2010, when the operator will seek tenders for the next phaseof its LTE rollout.AT&T claims to have the fastest-growing 3G network in the US, though it hassuffered recently from adverse publicity regarding network coverage for the  iPhone and at the hands of aggressive marketing by rival Verizon Wirelessregarding its relative lack of national 3G coverage.AT&T said in a 4Q09 results briefing that it plans to spend US$18-19 billionon its wireless network in 2010, compared with US$17 billion in 2009. Thisinvestment will include a focus on groundwork for LTE, on improving overallcapacity and performance and on HSPA coverage at 7.2Mbps in metro areaswith high-volume demand.The LTE announcement looks like a blow to Nokia Siemens Networks, whichsupplies both GSM and WCDMA/HSPA equipment to AT&T, said MikeRoberts, a principal analyst at Informa Telecoms & Media. NSN did, however,recently win a share of TeliaSonera’s national LTE rollout, along withEricsson. “That was a tough deal to win, because NSN had to beat out Huawei,which along with Ericsson supplied LTE equipment for TeliaSonera’s initialrollout in Oslo and Stockholm,” Roberts said.But the AT&T deal is a big win for Alcatel-Lucent, he said. “There have beenquestions about whether the vendor could hold onto its existing WCDMA/ HSPA customers, such as AT&T, as they transition to LTE, due to theperception that Ericsson and Huawei are becoming the leading LTE RANvendors and because of Alcatel-Lucent’s relatively weak position in theWCDMA/HSPA market,” he said.The AT&T deal gives Alcatel-Lucent a shot at retaining its strength in theNorth American networks market despite the decline of CDMA, since it nowhas a share of the LTE rollouts of the top two operators, Verizon Wirelessand AT&T, Roberts said. “It also gives Alcatel-Lucent a great reference in theWCDMA/HSPA market,” he said. “Now the challenge will be to win dealsoutside North America, one of its traditional strongholds.”Alcatel-Lucent is providing AT&T with LTE base stations, element-management systems, engineering and installation services and a network-management system. Field testing of the LTE network will include handoverand in-building testing on a dual-band network using AWS and 700MHzfrequencies.However, the vendor’s newly launched MC-TRX, a software-defined radiomodule capable of simultaneously supporting 2G, 3G and LTE, is not partof the initial agreement with AT&T, according to Alcatel-Lucent, though acompany statement said the contract included “elements of our convergedRAN portfolio.” Alcatel-Lucent recently contracted to supply the MC-TRX  as part of a converged RAN network for an LTE trial being conducted by SFR,a customer for its WCDMA base stations.Alcatel-Lucent says that, space permitting, the MC-TRX can be installed inany of its own base stations deployed by a service provider since 1999, therebyproviding an upgrade path to LTE. The company estimates this installed baseto be more than 700,000 units covering GSM and 3G.As well as serving existing Alcatel-Lucent customers, the new modulewill also provide opportunities for Alcatel-Lucent to completely replace theaging installed base of its competitors, says Jean-Louis Hurel, consultativemarketing director for wireless networks at Alcatel-Lucent.
Similar documents
View more...
Related Search
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks