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Telecommunications equipment industry

Alcatel and MCI Extend Purchase Agreement Exceeding $100 Million

Strategic Insights

— 1 min read

Alcatel and MCI have agreed to extend through 1998 a purchase agreement worth in excess of $100 million, giving MCI the opportunity to acquire a wide range of Alcatel network technologies. This contract extension also solidifies the existing pricing relationship between the two companies and ensures that MCI will continue to purchase Alcatel 1633 SX broadband cross connects for its backbone network operations.

Key Takeaways:

  • The purchase agreement is valued in excess of $100 million and will be effective through 1998.
  • The agreement extends the existing pricing relationship between Alcatel and MCI, ensuring continued collaboration on network operations.
  • MCI will continue to purchase Alcatel 1633 SX broadband cross connects for its backbone network operations, which perform critical bandwidth management, performance monitoring, network restoration, and survivability functions.
  • The agreement is a testament to the strategic importance of customer relationships and meeting customer needs, as stated by Ken Lewis, Alcatel's vice president and general manager for cross connect products.
  • MCI has deployed over 100 Alcatel cross connects nationwide in the past two years, impressing them with the results and demonstrating the crucial competitive advantage afforded by Alcatel's technology.
  • This is the second major cross connect agreement between Alcatel and MCI in two years, following a $200 million investment in cross connect technology from all vendors in May 1994.
  • Alcatel has also completed the delivery, installation, and test of Alcatel 1631 SX wideband digital cross connects for MCImetro networks throughout the country.

Statistics:

  • The purchase agreement is valued in excess of $100 million.
  • MCI has deployed over 100 Alcatel cross connects nationwide in the past two years.
  • The investment in cross connect technology from all vendors was $200 million in May 1994.
  • Alcatel has completed delivery, installation, and test of Alcatel 1631 SX wideband digital cross connects for MCImetro networks throughout the country.

Sources:

  • Business Wire
  • Michael Newsom, Alcatel (michael_newsom@aud.alcatel.com)
  • Jim Collins, MCI

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