AirGate PCS and Lucent Technologies Announce Three-Year Contract Worth Up to $150 Million for PCS Network in the Carolinas

Strategic Insights -

AirGate PCS, a wireless carrier affiliated with Sprint PCS, has signed a three-year supply contract with Lucent Technologies worth up to $150 million to build and operate a Personal Communication Services (PCS) network in North and South Carolina. The all-digital wireless network will be compatible with Sprint PCS' nationwide 100 percent digital, 100 percent PCS network built on the Code Division Multiple Access (CDMA) standard. The AirGate PCS service area covers 20 Basic Trading Areas (BTAs) throughout the Carolinas and the Outer Banks of North Carolina, reaching more than 6.8 million potential subscribers.

Key Takeaways:

  • The contract is valued at up to $150 million and will enable AirGate PCS to build and operate a PCS network in North and South Carolina.
  • The network will be compatible with Sprint PCS' nationwide 100 percent digital, 100 percent PCS network built on the CDMA standard.
  • The AirGate PCS service area encompasses 20 BTAs throughout the Carolinas and the Outer Banks of North Carolina, reaching more than 6.8 million potential subscribers.
  • The initial build-out will include the cities of Anderson, Spartanburg, and Greenville in South Carolina, and Asheville and Hickory in North Carolina.
  • Lucent will provide the switching hardware and software, as well as radio hardware and software and related financing to build the CDMA-based wireless network.
  • The equipment includes the Lucent 5ESS Switch, the industry's most reliable switching system.
  • AirGate PCS will deploy over 525 sites throughout its territory during the year 2000, covering in excess of 75% of its population.
  • The contract is a significant partnership between Lucent Technologies and AirGate PCS, with Lucent providing the necessary technology and financing to support the rollout of a large-scale PCS network.
  • AirGate PCS' territory is one of the largest announced by Sprint PCS for operation by an affiliate, covering more than 6.8 million potential subscribers.

Statistics:

  • Up to $150 million: Value of the three-year supply contract between AirGate PCS and Lucent Technologies.
  • 20 BTAs: Number of Basic Trading Areas (BTAs) covered by AirGate PCS' service area.
  • 6.8 million: Number of potential subscribers reached by AirGate PCS' service area.
  • 2000: Year in which AirGate PCS' initial build-out is expected to be completed.
  • 525: Number of sites to be deployed by AirGate PCS throughout its territory during the year 2000.
  • 75%: Percentage of AirGate PCS' population that will be covered by the network in the year 2000.
  • $17 billion: Annual revenues of Sprint Corporation.
  • 20 million: Number of business and residential customers served by Sprint.

Sources:

  • AirGate PCS press release, October 12, 1999
  • Lucent Technologies press release, October 12, 1999
  • Sprint PCS website, http://www.sprintpcs.com
  • Lucent Technologies website, http://www.lucent.com
  • AirGate PCS NASDAQ stock exchange listing, PCSA.