Lucent Wins $5 Billion Contract From Verizon Wireless

Lucent Technologies(LU Quote) won a three-year, $5 billion contract making it the largest supplier of third-generation high-speed mobile network infrastructure to Verizon Wireless, a joint venture of Verizon (VZ Quote) and Vodafone (VOD Quote).

Terms of the agreement, which was announced Monday, allow for Verizon to purchase multiple products and systems from Lucent, including Bell Labs-developed software designed to expand wireless coverage, increase capacity and support high-speed data and mobile Internet applications. Verizon is also expected to launch a variety of Lucent's mobile Internet enhanced services.

With Lucent's technology, Verizon said it will potentially double its existing network's voice capacity and increase data-transmission speeds by nearly 10 times. Verizon also will deploy a technology that enables data-only services to customers requiring even higher Internet access speeds for such needs as transmitting graphic-intensive files or streaming video downloads. Third-generation networks require high-speed data-networking systems to support mobile Internet sessions at increasing rates.

Shares of Lucent were up 46 cents, or 4.6% to $10.45 in preopen Instinet trading. Vodafone shares were up 30 cents, or 1.1%, to $28.40.