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Telecommunications systems

AT&T Announces Multi-Vendor Program to Increase Wireless Capacity and Reliability

Strategic Insights

— 1 min read

AT&T Wireless Services, a leading provider of wireless communications in North America, has announced a multi-vendor program to meet the growing demand for its wireless service. The program, which will see the installation of new wireless equipment from Lucent Technologies and Nortel Networks in high-growth markets, is expected to increase the capacity and reliability of AT&T's wireless network while improving operating cost efficiencies.

As a result of the multi-vendor strategy, AT&T estimates that it will be able to meet its equipment and network capacity needs over the next four years for $900M less than previously projected. This significant cost savings is expected to be achieved through a combination of increased efficiency and lower operating costs.

Key Takeaways:

  • AT&T has signed letters of intent to install new wireless equipment from Lucent Technologies and Nortel Networks in high-growth markets to increase capacity and reliability.
  • The multi-vendor program is expected to cost $900M less than AT&T's previous projections over the next four years.
  • AT&T will continue to use Ericsson's equipment in approximately one third of its service areas.
  • Lucent and Nortel will supply equipment and services to AT&T based on the digital TDMA (Time Division Multiple Access) IS-136 standard.
  • The TDMA standard is a leading global digital standard that serves more than 19 million customers in the Western Hemisphere.
  • AT&T has grown its wireless revenues by 42.4 percent in the second quarter of 1999.

Statistics:

  • 42.4 percent: Growth in AT&T's wireless revenues in the second quarter of 1999.
  • $900M: Cost savings expected from the multi-vendor program over the next four years.
  • 19 million: Number of customers served by the TDMA standard in the Western Hemisphere.
  • 1/3: Proportion of AT&T's service areas using Ericsson's equipment.
  • 4 years: Timeframe over which AT&T expects to meet its equipment and network capacity needs.

Sources:

  • [1] AT&T Press Release, "AT&T Announces Multi-Vendor Program to Increase Wireless Capacity and Reliability", August 27, 1999.
  • [2] Ken Woo, press contact for AT&T Wireless Services, Inc.

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