Positive stock activity is greeting Verizon Wireless’ announcement to launch its CDMA2000 1x EV-DO in major cities across the country, even though the carrier has not disclosed which companies will supply the equipment for the program.
Already, Qualcomm Inc., the proprietor of the protocol, has enjoyed a 5-percent boost in its shares on the Verizon news. Other companies basking in this development include Nortel Networks Ltd., Lucent Technologies Inc., L.M. Ericsson, Alcatel Corp. and Airvana.
Nortel Networks’ shares rose 45 cents, or 7.9 percent. Lucent also enjoyed a 10-percent jump in its shares. Both companies provided the equipment for the October launch last year. Nortel equipped the network in San Diego, while Lucent provided the gear in Washington, D.C.
“We are extremely pleased with the work both Nortel and Lucent have done so far,” remarked Jeffrey Nelson, spokesman for Verizon Wireless, adding the carrier has yet to sign contracts on the nationwide expansion. The company expects to spend $1 billion on its networks incrementally in the next two years, said Nelson.
Lucent spokesman Ichiro Kawasaki said his company is pleased with the Verizon announcement and hopes to be part of the EV-DO expansion.
Nortel’s share boost may not have come from the Verizon announcement alone as the vendor also signed a major wireline deal with Verizon this week. Alcatel and Ericsson have also had positive reactions. Alcatel jumped 12 percent, while Ericsson had a 15-percent leap.
Ericsson, which has swatted down rumors of selling its CDMA business, has its eye on the Verizon deal.
