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News > Companies
Lucent inks Verizon deal
June 15, 2000: 8:21 a.m. ET

Wins $1.5B wireless infrastructure contract, expanding relationship
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NEW YORK (CNNfn) - Lucent Technologies was tapped Thursday by mobile phone service provider Verizon Wireless to build its network infrastructure under an agreement worth $1.5 billion.

The Verizon deal expands an earlier partnership between the two companies and is aimed at boosting Verizon's coverage and capacity in major markets. Verizon will also use the Lucent-provided infrastructure to offer business and residential customers services such as third generation (3G) high-speed mobile Internet and enhanced data and voice capabilities.

Verizon Wireless was recently formed through the proposed merger of the wireless units of Bell Atlantic Corp. (BEL: Research, Estimates) and VodaFone AirTouch. According to a report in Thursday's Washington Post, the Federal Communications Commisssion (FCC) is set to approve Bell Atlantic's long-proposed merger with GTE Corp. (GTE: Research, Estimates) that would result in the largest local telephone country in the U.S. -- the new company is to be named Verizon Communications.

The Verizon Wireless-Lucent partnership also furthers the collaboration between the companies working on next-generation code division multiple access (CDMA) digital wireless technology within Verizon's wireless network. The CDMA enhancement is slated for an initial rollout in Philadelphia later this month.

In April, Lucent paired with CDMA leader Qualcomm (QCOM: Research, Estimates) in lab tests of the technology and reported that the high-speed transmission is ten-fold faster and can handle double the voice capacity than what is currently available.

Lucent (LU: Research, Estimates) also reportedly plans a spin-off of its microelectronics unit, but company officials would not comment on the possibility. A source told Business Week that if Lucent broke off its microelectronics division -- which makes computer chips, lasers and other optical communications systems -- it could net the Murray Hill, N.J.-based company as much as $40 billion.

graphicLucent's stock has sagged 27 percent since January, and the company reportedly has been considering a separate tracking stock to boost shareholder value.

In Wednesday trading, shares of Lucent fell 2-3/4, or 4.6 percent, to 56-5/8. Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.