ORLANDO, Fla. -- Verizon Wireless andAlcatel-Lucent (Euronext Paris and NYSE: ALU) today announced a three-yearagreement worth an expected US$6 billion for Alcatel-Lucent to supply awide variety of network equipment, software and services supporting VerizonWireless' ongoing network expansion and continuous improvements. With thisagreement Alcatel-Lucent continues to be Verizon Wireless' primary networkinfrastructure supplier and will continue to help grow Verizon Wireless'already successful, existing portfolio of multimedia and data services.

The equipment, software and services from Alcatel-Lucent will make itpossible for Verizon Wireless to further increase the coverage and capacityof its award-winning, wide-area BroadbandAccess data network based onCDMA2000(R) 1xEV-DO Revision A (Rev. A) technology and introduce new A-IMSservices including Voice over IP (VoIP), push-to-x, mobile video telephonyand more by deploying various components of Alcatel-Lucent's IMS solution.The deployment also will accommodate the Verizon Wireless approach tomulti-vendor interoperability of these systems. In addition, the agreementcalls for Alcatel-Lucent to enhance Verizon Wireless' existing CDMA2000 1Xnetwork.

"With strong support from Alcatel-Lucent, we at Verizon Wirelessprovide our customers with the highest quality and most advanced mobilenetwork in the U.S. The $6 billion investment we're announcing today isindicative of our willingness to further separate us from our competitorsin the marketplace," said Dick Lynch, chief technology officer andexecutive vice president of Verizon Wireless. "We will deliver value overfully interoperable IP-services that enhance the lifestyles of ourcustomers -- by offering multimedia services that combine voice, data, andvideo capabilities."

"This agreement underscores Verizon Wireless' commitment to quality andto further enhancing the industry-leading multimedia and data services thatits customers already enjoy," said Cindy Christy, president ofAlcatel-Lucent's North America business. "We are proud of the confidenceVerizon Wireless has in our abilities and our comprehensive and extensiveportfolio of products, solutions and services."

Under the agreement, Alcatel-Lucent will provide infrastructuresolutions spanning its entire portfolio to transition Verizon Wireless toan all-IP network. Verizon Wireless' CDMA2000 1xEV-DO Rev. A network willbe expanded and enabled to support services such as VoIP with Quality ofService (QoS) through software upgrades. Selected IMS services will beenabled through the addition of Alcatel-Lucent's IMS platforms with theA-IMS compliant Application Manager and Services Data Manager functions.

Existing Alcatel-Lucent-supplied packet switches will be upgraded tosupport IP soft handoff and Transcoder Free Operation, and theAlcatel-Lucent 7750 Service Router will also provide IP routing andEthernet aggregation.

Verizon Wireless will also use a wide range of products from Alcatel-Lucent's optical and wireless transmission products, including MDR 8000digital microwave radios. The Alcatel-Lucent optical networking productswill include the optical cross-connects LambdaUnite and 1671 ServiceConnect (SC), and the Metropolis DMX product family, which will provide anend-to-end solution for bandwidth management and mobility traffic backhaul.

Alcatel-Lucent is also providing comprehensive end-to-end networksupport services, ranging from network integration to installation, repairand maintenance services.

Alcatel-Lucent (NYSE: ALU)