AT&T Wireless Services Inc. is expected to award Lucent Technologies Inc. a Time Division
Multiple Access contract valued at more than $1 billion during the next three years, sources close to the companies
say.
Joseph Bellace, analyst with Merrill Lynch, indicated last week that AT&T Wireless has a significant capacity
issue because of the One Rate plan’s success and would likely award a contract to Lucent. AT&T Wireless’ capital
spending program is forecasted to double from $1 billion in 1998 to $2 billion this year, of which about 65 percent
would be for wireless infrastructure equipment, said Bellace.
Published reports indicated Ericsson Inc. has run
behind in keeping up demand for equipment. Today, Lucent and Ericsson are major vendors to AT&T
Wireless.
AT&T Wireless declined to comment, and Lucent could not be reached by RCR press time.
