AT&T selects Alcatel-Lucent as LTE equipment supplier

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that AT&T* (NYSE: T) has selected Alcatel-Lucent as one of two equipment suppliers for its planned deployment of LTE mobile broadband technology. Supplier selection paves the way for planned field trials of LTE technology later this year with commercial deployment scheduled to begin in 2011.

Additionally, AT&T has designated Alcatel-Lucent one of two suppliers for its new Radio Access Network Domain. The multi-year agreement covers radio access network equipment needed to deliver LTE service. 

Alcatel-Lucent currently provides equipment for the existing AT&T 3G network. Under the agreement, 3G equipment delivered to AT&T starting this year can evolve easily and seamlessly to LTE, enabling AT&T to upgrade existing equipment and software minimizing the need to install new equipment as it deploys next-generation technology.

"This announcement is an important step forward in our ongoing mobile broadband strategy, which is focused on delivering the best possible combination of speed, performance and available devices for customers at every level of technology deployment," said John Stankey, president and CEO, AT&T Operations. "AT&T has a key advantage in that LTE is an evolution of the existing GSM family of technologies that powers our network and the vast majority of the world's global infrastructure today. As some competitors move away from their existing investment in niche 3G platforms, we are able to efficiently and quickly move toward LTE while enhancing our existing 3G performance and providing access to a strong ecosystem of customer devices."

"This is a critical step forward in AT&T's ongoing mobile broadband strategy to deliver and support the next generation of mobile applications. We look forward to being a part of the journey and see this as a starting point for further collaboration with AT&T to deliver an end-to-end IP solution for mobile broadband," said Alcatel-Lucent CEO Ben Verwaayen. "This announcement expands on our long standing relationship with AT&T - one that covers everything from 3G HSPA infrastructure to network monitoring and management - and speaks volumes about the confidence and trust they have in our leadership in LTE technology and our ability to deliver a smooth, end-to-end migration path to LTE."

The evolution to LTE is part of AT&T's ongoing efforts to innovate and invest in mobile broadband. AT&T today serves twice the number of smartphone customers as its nearest competitor, and this smartphone leadership has resulted in mobile broadband traffic that has grown more than 5,000 percent over the past three years. Smartphones are just one example of innovation made possible by investment in mobile broadband.

AT&T in January announced total 2010 capital expenditures are expected to be between $18 billion and $19 billion. These plans include an increase of approximately $2 billion in wireless network and backhaul investment, which will help ensure continued strong results in 3G network performance as well as preparation for planned deployment of LTE.

Earlier this year, AT&T upgraded 3G cell sites to HSPA 7.2 technology. Over the course of 2010 and 2011, AT&T plans to combine this upgrade with enhanced fiber-optic backhaul connectivity, which will support a considerable boost in 3G speeds as well as future LTE service. AT&T offers a total of 10 HSPA 7.2-compatible devices today, enabling millions of customers to immediately take advantage of faster 3G speeds as backhaul is deployed. In contrast, LTE devices are still in development today and are not expected to be widely available until 2011.

This upgrade strategy will enable customers to experience a significant boost in 3G speed well ahead of the time when an LTE ecosystem with handsets is available. As LTE is deployed, HSPA 7.2 and supporting backhaul will provide a much more robust 3G network experience when users move outside of locations covered by next-generation networks. In contrast, competitors who are not upgrading their 3G networks will be unable to provide faster mobile broadband speeds for smartphones until next-generation devices are available.

Alcatel-Lucent is providing its industry-leading LTE base stations (eNodeBs) - key elements of the company's Converged RAN portfolio, as well as Element Management Systems (EMS) and engineering and installation services. In addition, Alcatel-Lucent is providing its 9900 Wireless Network Guardian, which provides critical network visibility needed to manage the effects that IP-based applications will have on wireless networks.

Field testing will include stationary and drive tests with multiple users in a variety of field conditions, including handovers and in-building testing on a dual band network using AWS and 700 MHz spectrum, as well as HSPA bandwidth.

Benjamin Kharlakian, Managing Director at Alcatel-Lucent (Thailand) said, "Our ability to work together to meet the demands of a rapidly changing market has been witnessed in more than 40 LTE trials over the world. Added to our already announced LTE agreements, specifically last year's Verizon Wireless, this agreement solidifies our position as a global leader in the LTE market. In Q1 this year, we have several new LTE trials, including China Mobile for World Expo 2010, Bouygues Telecom, SingTel and Cox. Therefore, our customers can trust Alcatel-Lucent that once they deploy 3G network with us, we have worldwide experience and can work just as hard to secure a smooth rollout of LTE on 3G, which mean seamless upgrade, time to market, save investment costs."

*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

About AT&T

AT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries and affiliates - AT&T operating companies - are the providers of AT&T services in the United States and around the world. With a powerful array of network resources that includes the nation's fastest 3G network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet and voice services. AT&T offers the best wireless coverage worldwide, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verseSM and AT&T | DIRECTVSM brands. The company's suite of IP-based business communications services is one of the most advanced in the world. In domestic markets, AT&T's Yellow Pages and YELLOWPAGES.COM organizations are known for their leadership in directory publishing and advertising sales. In 2009, AT&T again ranked No. 1 in the telecommunications industry on FORTUNE® magazine's list of the World's Most Admired Companies. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com.