Cingular, the second-largest wireless digital phone company in the U.S.,
signed a five-year contract with Lucent Technologies
Wednesday to supply its 2.5G network expansion.
While Lucent and Cingular officials would not comment on the dollar figure
attached to the contract, they did say the contract was “significant” and
the equipment on its way to Atlanta, Boston, Philadelphia and Washington,
D.C., would be used to bolster Cingular’s existing wireless network, which
has approximately 21 million customers.
Ichiro Kawasaki, Lucent spokesperson, said the contract begins immediately
with technicians from both companies helping in the installation of the
Flexent cells manufactured by Lucent.
“Cingular is increasing its capacity on those lines,” Kawasaki said. “The
equipment is compatible with the existing equipment on the network.”
Lucent’s Flexent product line uses one of the industry platforms for
wireless phone technologies: the global system for mobile communications
(GSM). The time division multiple access (TDMA) technology allows eight
callers to share the same frequency on wireless systems, making it one of
the more economical platforms to use in the relatively small spectrum
allotted for consumer and commercial 2.5G/3G communications.
The deal is part of Cingular’s rush to provide enhanced wireless Internet
services on America’s digital phones, a precursor to the 3G movement
sweeping the rest of the world.
2.5G is considered the transition between 2G technology (digital personal
communications systems (PCS) handsets) and true 3G communications, which
will allow 384Kbps Internet speeds that transport data packets and phone
calls at the same time. Cingular is offering packages starting at $14.99 a
month.
Cingular announced last month it was the first wireless company in the U.S.
to provide 2.5G services. Its testbed service was started in Seattle and
will likely expand nationwide in the coming months.
However, the four cities named in Wednesday’s contract are not the next
four scheduled for 2.5G services, according to Clay Owen, Cingular
spokesperson.
“The four cities mentioned aren’t necessarily the next ones on our
deployment,” Owen said. “We’re using Lucent equipment to fill in some of
our needs for TDMA equipment in the area.”
Cingular’s deal with Lucent is by no means exclusive. The wireless
provider also has TDMA equipment contracts with Nortel Networks and Ericsson.
Cingular is in a race to put
distance between itself and competition from smaller digital phone
companies like Sprint PCS, while fighting for marketshare with the number
one digital phone provider in the country, Verizon Wireless.
Verizon Wireless, the wireless arm of telco giant Verizon Communications
has more than 28 million users.
Cingular is the joint venture of two other incumbent local exchange
carriers (ILECs), BellSouth and SBC Communications
.
