Amid increased media publicity over capacity problems in its New York City market, AT&T Wireless Services granted contracts to Lucent Technologies and Nortel Networks that calls for the vendors to replace Ericsson’s equipment in the country’s two largest wireless markets, New York and Los Angeles.
Ericsson-AT&T Wireless’ main equipment supplier-has taken the heat since media reports surfaced detailing New York customers complaining about poor quality, dropped calls and busy signals. AT&T Wireless’ introduction of high-end, flat-rate anywhere calling plans last May has caused usage to skyrocket across the country and especially in New York, where AT&T Wireless is trying to curb growth by cutting back on marketing efforts.
AT&T Wireless President and Chief Executive Officer Dan Hesse recently said his company had trouble fixing capacity problems in New York because Ericsson could not deliver equipment fast enough. The TDMA operator this year more than doubled its digital capacity in New York.
Now Lucent will replace that new equipment, and AT&T Wireless will redeploy the infrastructure in other Ericsson markets. AT&T Wireless declined to comment on any dissatisfaction with Ericsson. Ericsson also would not comment.
“This will help us to more quickly respond to demand for services in metro areas,” said AT&T Wireless spokesman Dave Johnson when asked why the carrier plans to replace Ericsson’s equipment in New York.
Network growing pains also have prompted AT&T Wireless to add Nortel Networks as a third vendor. The carrier announced letters of intent with Nortel and Lucent, which already has a US$1 billion deal with the carrier, to deploy equipment in a number of markets.
“When you have vendors competing, it results in better product and faster delivery,” said Johnson. “That’s one of the primary reasons we’re looking at multiple vendors.”
With the new contracts, Ericsson’s share of AT&T’s wireless equipment business fell from two-thirds to one-third.
