DENVER-Analysts speculate AT&T Wireless Services Inc. may add Nortel Networks as an additional supplier of Time Division Multiple Access equipment.
Growth on the carrier’s networks has skyrocketed since AT&T Wireless introduced the Digital One Rate plan last May. The plan eliminates long-distance and roaming fees. AT&T Wireless President and Chief Executive Officer Dan Hesse recently told RCR it had trouble adding capacity in New York because Ericsson Inc., the carrier’s primary supplier, could not deliver equipment fast enough. The New York market’s capacity problems have been the subject of several press reports.
Salomon Smith Barney analyst Alex Cena believes AT&T’s steep growth curve may require a third vendor to keep up with demand. Sprint PCS in its massive nationwide buildout uses Nortel, Motorola Inc. and Lucent Technologies Inc. equipment.
AT&T Wireless and Nortel declined to comment on the speculation.
AT&T Wireless earlier this year awarded Lucent a four-year contract valued at about $1 billion.
