Bell Atlantic Unveils Next-Generation Data Packet-Switched Network

Strategic Insights -

Bell Atlantic has begun construction of a state-of-the-art data packet-switched network, which will provide high-quality, high-speed transport services for the northeastern United States and the world. The new network will support services like virtual private networks, work-at-home, and audio and video streaming over the World Wide Web. The company has partnered with Lucent Technologies under a five-year contract valued at over $200 million to supply equipment and software for the network. The new data network is expected to double or triple the regional market for data services to $80-90 billion by 2003.

Key Takeaways:

  • Bell Atlantic's new data packet-switched network will provide high-speed transport services, platform services, and a complete range of value-added applications, including Intranet/Extranets, electronic commerce, and video conferencing.
  • The network will be built on advanced ATM (asynchronous transfer mode), SONET (synchronous optical network), and WDM (wave division multiplexing) technologies.
  • Bell Atlantic has partnered with Lucent Technologies under a five-year contract valued at over $200 million to supply equipment and software for the network.
  • The new data network is expected to double or triple the regional market for data services to $80-90 billion by 2003.
  • Bell Atlantic conservatively estimates it will generate over $3 billion in new revenue by 2003 from long-distance transport services alone.
  • Value-added platform and application services are expected to generate an additional $2 to $3 billion in yearly revenues.
  • Initial deployment will connect hubs in Boston, New York, Philadelphia, and Washington, D.C.
  • The network will carry Internet backbone traffic along with other traffic.
  • Bell Atlantic's new ATM/SONET data network will also be capable of emulating a circuit-switched, voice network over a platform built and designed for data.
  • Bell Atlantic plans to extend the capabilities of this network to other cities across the United States and around the world to provide complete, end-to-end solutions to national and global customers.

Statistics:

  • The regional market for data services is expected to double or triple to $80-90 billion by 2003.
  • Bell Atlantic conservatively estimates it will generate over $3 billion in new revenue by 2003 from long-distance transport services alone.
  • Value-added platform and application services are expected to generate an additional $2 to $3 billion in yearly revenues.
  • Initial deployment will connect hubs in Boston, New York, Philadelphia, and Washington, D.C.
  • The network will employ the latest advances in data technology.

Sources:

  • Bell Atlantic news release dated June 8, 1998
  • Lucent Technologies news release dated June 8, 1998
  • Bell Atlantic /PRNewswire/ release dated June 8, 1998