BAL HARBOUR, Fla.-AT&T Wireless Services Inc. says it is on track to fix network capacity problems associated with high demand for the digital one-rate service by June.
“We have a well-defined plan to get ahead on capacity,” said Rod Nelson, vice president and chief technology officer with AT&T Wireless. “We are responding to a new growth curve.”
AT&T Wireless’ network capacity problems, primarily in large markets like New York, have been highlighted recently as the carrier continues to add customers to its one-rate plan-a plan that eliminates roaming and long-distance fees nationwide. The carrier’s vendors haven’t been able to deliver network equipment fast enough, a problem that is improving, said Nelson.
AT&T Corp. allocated $2 billion in capital expenditures for 1999, the majority of which AT&T Wireless will use to upgrade and build out its remaining 1900 MHz markets. AT&T Wireless Chief Executive Officer Dan Hesse said his company will spend the next year building out personal communications services markets not allocated to affiliate companies.
AT&T Wireless recently signed a contract network equipment contract with Lucent Technologies Inc. The contract, valued at $1 billion during the next four years, makes Lucent the carrier’s majority supplier, said Nelson. Historically, Ericsson Inc. has supplied about 60 percent of AT&T Wireless’ equipment, with Lucent supplying the other 40 percent.
“The important part was Lucent’s commitment to the EDGE strategy,” said Nelson.
That commitment, said William Wiberg, president of Lucent’s cellular and personal communications systems business, includes capacity enhancements that reduce the number of Time Division Multiple Access base stations required to provide wireless service and software modifications that can support current generation and third-generation services on the same base station.
Industry insiders suggest Ericsson may have fallen out of favor with AT&T Wireless as it struggles to deliver equipment and software upgrades. Nelson said AT&T Wireless remains committed to Ericsson as a long-term supplier.
“We’ve had challenges with every supplier,” he said.
