AT&T picks Ericsson, Alcatel-Lucent for LTE rollout

AT&T Mobility chose Ericsson and Alcatel-Lucent to build out its LTE network, an equipment supplier decision that mirrors rival Verizon Wireless’ choice a year ago. AT&T said it chose the two companies in part because they supply equipment for its 3G network and therefore the equipment can be easily upgraded.
“Continued work with these two suppliers will enable AT&T not only to incorporate high-performance LTE equipment, but also to take full advantage of compatibility between the suppliers’ existing 3G equipment and forthcoming LTE upgrades,” AT&T said in a statement. “As part of the supplier agreements, 3G equipment delivered to AT&T by the suppliers starting this year will be easily convertible to LTE, enabling AT&T to upgrade existing equipment and software rather than install entirely new equipment in many cases as it deploys the next-generation technology.”
The decision is likely a blow for vendors Nokia Siemens Networks, which has yet to ink a major LTE deal in the United States, and Huawei Technologies Co. Ltd., which also was bidding for the contract. NSN last year opened an LTE lab in Dallas to show its support for the LTE market in North America. Huawei has built out 3G networks for Cox Communications Inc. and Leap Wireless International Inc., and also won a deal to build Clearwire Corp.’s WiMAX network.
AT&T is planning field trials later this year with commercial rollout set to begin in 2011. As part of the agreements, the carrier said it named Alcatel-Lucent and Ericsson as the “domain suppliers” for its radio access network. The carrier’s Domain Supplier program “facilitates a more collaborative relationship with its equipment and software suppliers, enabling AT&T to have best technologies in place to serve its customers,” according to the company.
Financial terms of the deal were not disclosed. Winning the initial contract is by no means a guarantee of an easy road for the network vendors as carriers have been known to pull out equipment and replace it if they aren’t satisfied with the network. In the past, carriers also have expanded their equipment suppliers as they go forward with the network build.
AT&T said it plans to spend between $18 billion and $19 billion in capex this year.