Lucent Technologies Awarded $350+ Million China Contracts

By TechSecurityChina.com Editor
January 14, 2004

Lucent Technologies today announced a series of significant agreements with China Unicom and China Telecom with total contract values of more than $350 million.

The agreements cover virtually the entire range of Lucent’s next-generation network offerings and services that are designed to accelerate the smooth evolution to packet networks as well as enabling the delivery of advanced multimedia communications services.

Under the contracts, Lucent will deliver solutions that lay the foundation for Internet protocol (IP) voice and data services such as high-speed mobile data access, video-on-demand and IP Centrex services. These solutions, incorporating parts of Lucent’s recently announced Accelerate portfolio, simultaneously provide the additional benefit of cutting the cost of operating their networks. These agreements underscore Lucent’s close, collaborative relationships with China’s major service providers and demonstrate the company’s leading position in China’s next-generation network market.

Under one of the new agreements, Lucent will provide further support for the phase III expansion of China Unicom’s CDMA2000(R) mobile network, the world’s largest CDMA network. With its phase III expansion, initiated this past summer, China Unicom will expand its network capacity to support more than 50 million customers, and offer coverage nationwide. This will enable China Unicom to serve a greater portion of the Chinese market, and also positions the company for the widespread commercial rollout of third-generation (3G) mobile technology. Under the contract, Lucent will supply China Unicom with the equipment needed to deliver mobile high-speed data services such as video-on-demand, live streaming video and high-speed wireless Internet access.

The two companies also signed an agreement to supply a multi-service Multiprotocol Label Switching (MPLS) core solution for China Unicom’s data backbone based on the joint Lucent Technologies Juniper Networks MPLS Core solution. The Lucent Juniper Networks MPLS Core solution includes the first announced capability in the industry that allows service providers to automatically create a network path that can deliver guaranteed ATM services end-to-end over an MPLS core network. Deploying this solution will enable China Unicom to offer varying guaranteed levels of service to enterprises on a more cost-effective converged MPLS core network.

China Unicom’s national multi-service backbone network is currently the largest multi-service switching network in the world based on technology from Lucent and is the largest convergent transport network in China. The phase IV expansion will support a variety of services in 330 major cities in China. MPLS is a technology that improves IP network quality. Lucent’s MPLS core solution enables the same high quality of service in IP networks as available in today’s standard data networks, which use Asynchronous Transfer Mode (ATM) technology.

Additionally, China Telecom signed a frame agreement with Lucent for equipment and services covering optical systems, 5E-XC switches from Lucent’s Accelerate portfolio of Voice over IP (VoIP) solutions and Personal Handyphone Systems (PHS). China Telecom is among the first service providers in the world to deploy Lucent’s next-generation optical networking solutions including the LambdaUnite MultiService Switch (MSS), and PHS solutions, which allow subscribers to use a sophisticated cordless phone to access wireless voice and data services in a particular geographic area.

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