Alcatel, Redback Score at BellSouth
The French giant and Redback Networks Inc. (Nasdaq: RBAK) have been named as the first two vendors to win access network upgrade deals from BellSouth Corp. (NYSE: BLS). (See BellSouth Picks Alcatel, Redback.)
Alcatel had been expected to be a lead contractor (see BellSouth Picks IPTV Finalists). The BellSouth deal adds to its key role in SBC Communications Inc.'s (NYSE: SBC) Lightspeed project, making Alcatel the undisputed king of next-generation access networks on Lucent Technologies Inc.'s (NYSE: LU) home turf (see SBC Sheds Light on 'Lightspeed' and Mais Alors! Alcatel Bags $1.7B SBC Deal ).
No commercial terms were announced.
In pre-market trading this morning, Redback's share price rose 24 cents, more than 3 percent, to $7.52, while Alcatel's stock was up 15 euro cents, 1.5 percent, to €10.07 ($12.84) on the Paris exchange.
The contract awards are part of the RBOC's network transformation, or IPTV, project, that will see BellSouth upgrade its access network so it can provide integrated voice, data, and video -- i.e., triple-play services (see BellSouth: Access Will Rise Again and Analyst: Copper Is BellSouth's Gold).
Alcatel will supply its 7330 IP DSLAM and 7302 Intelligent Services Access Manager devices that can deliver access speeds of up to 24 Mbit/s (see Vendors Claim DSLAM Breakthrough and Alcatel Cancels New Litespan DLC).
"This extends our relationship with Alcatel, which has served both companies well as we've brought DSL services to more than 75 percent of our customers," said BellSouth CTO Bill Smith in a prepared statement.
Redback will supply its SmartEdge Service Gateway, the firm's latest broadband remote access server (B-RAS). "As we deploy our next-generation infrastructure and execute our enhanced broadband services strategy, Redback Networks will provide the platform for broadband services, IP edge routing, and potentially state-of-the-art video," said BellSouth's CTO.
The news is as expected, says Heavy Reading analyst at large Graham Beniston. He says Alcatel was the clear favorite to win the DSLAM part of the deal, while Redback was well placed as an existing supplier.
"Redback is the incumbent B-RAS supplier, and this follows the pattern in terms of the incumbents winning new business. Its installed products already play a key role as part of the provisioning and service management systems. That's one way to get into a long supply lifecycle -- become an integral part of the service management system," says Beniston, author of a recent Light Reading report on the subject (see DSL Service Management).
— Ray Le Maistre, International News Editor, Light Reading