Lucent, SBC Ink $1 Billion Deal

Lucent and SBC Communications Thursday inked a deal valued at $1 billion. Designated as SBC’s primary provider of data, voice and access infrastructure, Lucent is charged with bringing voice and data services to
SBC’s customers nationwide.

“We are looking to Lucent to provide the key networking infrastructure to
build a next-generation, reliable and cost-effective network that exceeds
our customers’ expectations,” said Ron Blake, president of SBC Telecom Inc.

“Lucent’s technological innovations and capabilities in the areas of data
networking technology will enable us to offer next-generation services
quickly as we continue to enter these markets,” Blake added.

Lucent plans to incorporate its 7R/E Packet Solutions in advancing SBC’s
infrastructure technology. SBC will also implement Lucent’s GX 550 and CBX
500 Multiservice WAN switches and its AnyMedia platform, a next-generation
digital loop carrier that can provide regular telephone service as well as
high-speed DSL service.

The five-year contract with Lucent is part of San Antonio, Texas-based
SBC’s long-term plan to enter 30 new markets and evolve its network to a
full packet network in the near future.

The contract covers SBC’s nationwide entry into 30 markets outside its
traditional service areas. The company already has established sales and
operations activities in Baltimore, Boston, Fort Lauderdale, Miami, New
York, Seattle and Washington, D.C., with full service to begin this fall.

“Today’s agreement is another major step toward being able to offer our
customers a one-stop, full-service communications alternative,” said Blake.

SBC will enter nine new markets this year and 21 next year, providing
local, long-distance, Internet and high-speed data services to businesses
and consumers.

“The addition of the 30 markets will bring SBC to 50 of the largest markets in the U.S.,” noted Ed Presberg, SBC spokesperson. “When SBC completes its expansion, it will offer service nationwide
in markets that reach 180 million people.”

This is the first time a former Bell operating company is competing for
local business and residential customers on a national scale, according to
Tom Hilton, sales vice president for Lucent.

“SBC is aggressively moving forward with plans to introduce a new level
of competition in major markets nationwide,” he said. “As a primary supplier
for SBC’s national expansion, we’re proud to be a part of this historic
telecommunications milestone
that will enable SBC to expand and offer a full suite of telecommunications
services to customers across the country.”

In related news, Lucent also announced that Brazil’s Eletronet has
selected Lucent to provide $180 million of optical networking equipment for
one of the largest and most
advanced optical networks in Latin America.

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