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Telecommunications systems

Lucent Technologies and Allegiance Telecom Announce Global Procurement Agreement

Strategic Insights

— 1 min read

Lucent Technologies and Allegiance Telecom, Inc. have announced a three-year, $350 million global procurement agreement for advanced telecommunications equipment, software, and services. The agreement will enable Allegiance to extend its voice and data services to 36 U.S. markets by the end of 2001, with a focus on expanding its network through Lucent's Internet infrastructure and communications networking products. This partnership is a strategic move for Allegiance, which plans to complement its existing circuit network with a packet network through Lucent's 7R/E Packet Solutions.

Key Takeaways:

  • The agreement is valued at $350 million and spans three years, demonstrating a significant investment in Allegiance's network expansion.
  • Lucent's advanced data networking and communications equipment, including the AnyMedia Access System, 5ESS Switch, ConnectReach integrated access devices, and CONNECTVU-APX switch configuration management software, will be used to enhance Allegiance's network.
  • The partnership allows Allegiance to offer businesses a range of services, including local and long-distance service, Internet access, and data communications over a single high-speed T1 line, facilitated by Lucent's ConnectReach integrated access device.
  • Allegiance intends to use Lucent's products and services to expand its reach into 15 additional markets, increasing its presence in the small- and medium-sized business market.
  • Lucent's 5ESS Switch has achieved 99.9999 percent on-time performance reliability for four straight years, according to a Federal Communications Commission report.
  • The partnership between Lucent and Allegiance is a testament to the companies' commitment to providing high-quality, reliable services to small- and medium-sized businesses.

Statistics:

  • The agreement is valued at $350 million, with a duration of three years.
  • Lucent's AnyMedia Access System provides a multitude of services from any transport medium to any digital switch and/or data network.
  • The 5ESS Switch has achieved 99.9999 percent on-time performance reliability for four straight years, according to a Federal Communications Commission report.
  • Allegiance operates in 21 markets and plans to expand its reach into 15 additional markets.
  • Allegiance's common stock is traded on the Nasdaq National Market under the symbol ALGX.
  • Lucent Technologies is headquartered in Murray Hill, N.J., USA.

Sources:

  • Allegiance Telecom, Inc. (Nasdaq: ALGX)
  • Lucent Technologies (NYSE: LU)
  • "Allegiance Telecom and Lucent Technologies to Provide Enhanced Communications Services to Small- and Medium-Sized Businesses." PRNewswire. May 15, 2000.
  • Federal Communications Commission report on 5ESS Switch reliability.

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