Alcatel-Lucent Wins $6 BN Verizon Wireless Contract

Verizon has signed a three-year deal with Alcatel-Lucent worth $6 billion to continue building out its network in the United States and help extend the reach of its multimedia and data services.

The agreement would mean the country's second largest mobile operator would be able to expand its EV-DO Revision A coverage, as well as add new services. Among those planned are VoIP, push-to-x (an extension of PTT), video calls, and other technologies.

Such technologies are known as IMS, which is short for IP Multimedia System. Specifications for the service are built into the newest handsets and 3G networks, and will help turn the cellular phone into more of an all-purpose communications device.

"We will deliver value over fully interoperable IP-services that enhance the lifestyles of our customers -- by offering multimedia services that combine voice, data, and video capabilities," chief technology officer Dick Lynch said.

Alcatel-Lucent will also assist Verizon in enhancing its CDMA2000 1x network in areas where EV-DO may not be feasible.

Verizon has strong ties to Lucent, which merged with Alcatel last year. However, the merged company has struggled in the face of declining sales as carriers have begun scaling back their equipment purchases.