Ericsson, Alcatel win AT&T deal

US telecoms service provider AT&T has picked Ericsson and Alcatel-Lucent to build its new LTE high-speed wireless technology network, marking a major order for both carriers.

The companies did not give the value of the deal, but telecoms consultancy Aircom has estimated building the long-term evolution (LTE) network could cost $1.78 billion (Dh6.5bn) during first 12 months in the United States for an operator such as AT&T.

AT&T's rival Verizon is using the same vendors to roll out its network later this year, while AT&T's LTE network is scheduled to start operations in 2011.

Shares in Ericsson were 0.1 per cent lower at 1330GMT, while Acatel shares were 0.7 per cent higher.

Equipment vendors are battling for the first major orders for LTE networks – something they can use as a reference to win new deals.

Ericsson, having won several deals, is considered to be the leading player in LTE technology, but Alcatel-Lucent, Huawei, Motorola and Nokia Siemens have also won large LTE orders.

"It will have no substantial impact in 2010. In 2011 there will be more substantial deliveries," Ericsson Networks Head Johan Wibergh said.

"In 3G Ericsson has a more than 40 per cent market share worldwide and we certainly have the ambition to have as least as much of market share in LTE," he added.

LTE technology, or 4G, offers cheaper operating costs and enables fast uploads and downloads of movies, music and other data to mobile phones devices.

TeliaSonera opened the world's first commercial LTE service in the two Scandinavian capitals Stockholm and Oslo in 2009.

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