Sprint and Lucent to Spend $700 Million on Nationwide Wireless Network

Sprint's PCS unit and Lucent Technologies have announced a joint effort to accelerate the construction of a nationwide wireless-phone network. The partnership, which has been delayed due to a complex partnership with cable-television giants, has been revitalized with a three-year commitment of up to $700 million for equipment and services. This deal will expand coverage areas in major US cities and establish new networks in markets currently not served by Sprint PCS.

Key Takeaways:

• The partnership between Sprint PCS and Lucent Technologies will spend up to $700 million over three years to supply equipment and services for the nationwide wireless-phone network.
• Lucent will supply and install code division multiple access network infrastructure equipment and services, including base stations, switches, software, and professional services.
• The deal will expand PCS coverage areas in US cities and establish new networks in markets such as Las Vegas, Riverside, California, southern New Jersey, and Colorado Springs, Vail, and Summit County, Colorado.
• Lucent already has a $1.8 billion contract for the first phase of Sprint PCS' rollout of its network.
• The deal will bring benefits to the Lehigh Valley, where Lucent employs about 5,000 workers in its chip and wafer manufacturing facilities.

Statistics:

• Up to $700 million will be spent over three years on equipment and services.
• The partnership will cover major US cities and expand into new markets, including Las Vegas, Riverside, California, southern New Jersey, and Colorado Springs, Vail, and Summit County, Colorado.
• $1.8 billion is the value of Lucent's existing contract with Sprint PCS for the first phase of its network rollout.
• Lucent employs about 5,000 workers in the Lehigh Valley, where it makes computer chips and wafers.

Sources:

• Sprint Corp.'s Sprint PCS unit and Lucent Technologies Inc.
• Dow Jones
• Lucent Technologies Inc. (Murray Hill, N.J.)