Telefónica SA (NYSE: TEF) today handed a significant next-generation network deal to
Alcatel (NYSE: ALA; Paris: CGEP:PA) in a move that makes the French vendor and its bride to be,
Lucent Technologies Inc. (NYSE: LU), critical partners with the Spanish incumbent. (See
Alcatel Wins Deal.)
Alcatel is supplying Telefónica with its 7302 ISAM multiservice access node for bandwidth-hungry access services such as high-definition IPTV, its 7450 Ethernet Service Switch for aggregation and corporate services, and its Metrospan optical platforms.
An Alcatel spokesman says the deal is worth tens of millions of euros, and
not the €4 billion (US$5.06 billion) reported by Spanish newspaper
Cinco Dias, which also reported that Alcatel had beaten out
Ericsson AB (Nasdaq: ERIC),
Huawei Technologies Co. Ltd. , and
Lucent Technologies Inc. (NYSE: LU) to win the deal.
The deal puts Alcatel and Lucent, which are planning to merge, in a very strong position at the Spanish giant. (See
Alcatel, Lucent Near the Altar.)
Lucent is already well entrenched with Telefónica, especially with respect to the carrier's IPTV operations. (See
Lucent, Telefonica Team on IPTV,
Telefónica IPTV Hits 200,000,
Telefónica Uses Lucent/Riverstone Combo, and
Lucent Scores With Telefónica.)
In addition, Alcatel partner
Acme Packet Inc. (Nasdaq: APKT) plays a key role in the carrier's VOIP network. (See
Telefónica Deploys Acme Packet SBCs and
Telefónica Uses Acme.)
Telefónica's other key vendor is Ericsson, especially now that it has Marconi on board. (See
Ericsson Buys Bulk of Marconi,
Ericsson Wins Telefonica Deal,
Telefónica Deploys Marconi DWDM,
Ericsson Provides IMS to Telefónica , and
Telefónica Deploys BroadSoft.)
Ericsson is also one of Telefonica's main GSM and 3G radio access infrastructure suppliers, along with
Siemens Communications Group , while
Nortel Networks Ltd. won the right to provide the carrier's 3G core network.
— Ray Le Maistre, International News Editor,
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