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$1.5 Billion PCS/3G Network Renewal

8th December, 2004

US : Lucent Technologies and Sprint announced a contract renewal agreement - expected to exceed $1.5 billion over three years - to enhance Sprint's nationwide PCS wireless network and support the deployment of third-generation (3G) CDMA2000® 1xEV-DO (Evolution - Data Optimized) technology. This deal enables Sprint to increase the capacity and coverage of its PCS voice and data network as needed and includes future broadband data upgrade options to 1xEV-DO Release A or 1xEV-DV Release D technologies.

Included in the terms of the agreement is a Lucent upgrade of Sprint's existing Lucent-supplied base stations to support EV-DO service by simply adding an additional RF (radio frequency) carrier where needed. This will help protect Sprint's existing investment in infrastructure because its equipment does not need to be replaced. Lucent also will provide key elements of its IMS (IP Multimedia Subsystem) solution, a service delivery platform from its Accelerate(tm) Next-Generation Communications Solutions portfolio, that will enable Sprint to simply and cost-effectively introduce new voice over IP (VoIP) and multimedia services that can be delivered across mobile, wireline and converged networks.


"We will preserve Sprint's leadership in wireless data by providing customers the benefits of EV-DO services - the fastest wide-area data networking technology available today," said Oliver Valente, Sprint vice president, technology development. "This infrastructure enhancement allows Sprint to expand and strengthen coverage, deploy new services and support continued customer growth."

Lucent will provide several key elements of its IMS solution from its Accelerate(tm) portfolio including the Lucent Network Controller (softswitch technology), Lucent Network Gateway, and Lucent Super-Distributed Home Location Register (S-DHLR). The Lucent Network Controller is a next-generation softswitch platform for both wireless and wireline networks that manages voice and multimedia communications on IP networks and supports a wide array of legacy networks and standards, easing the transition of existing networks to the new multimedia services model.

The Lucent S-DHLR is an advanced customer information data server that enables the creation of a single subscriber profile for each customer and all of the services they use, in contrast to the traditional method of maintaining individual subscriber databases for each service. The S-DHLR, which provides support for a wide variety of voice and data services on mobile, wireline and converged networks, dramatically reduces the complexity of managing subscriber data, making it much easier for operators to offer their subscribers customized service bundles and a consistent look and feel for their services even when they're roaming onto another operator's network.

"Sprint is recognized as a leading innovator when it comes to wireless data, and with Lucent's EV-DO and IMS solutions, we're going to help them continue to innovate for years to come," said Chuck Naylor, vice president of North America sales for Lucent Technologies. "EV-DO will satisfy Sprint's business customers' need for a high-speed mobile computing experience and provide consumers with new, compelling services. Our IMS solution will enable Sprint to deliver converged 'lifestyle' service bundles that can help attract new subscribers and retain existing ones."

Sprint expects to initiate EV-DO service in many top metropolitan markets in the United States in 2005. As part of the EV-DO network deployment, Lucent also will provide its Radio Network Controllers (RNCs) and enhance Sprint's Tier 1 (T1) backhaul network with Juniper Networks M-series routing platforms to support reliable and secure mobile high-speed data services, including quality of service and high performance packet processing for premium services. Lucent Worldwide Services will provide installation, integration, optimization and Customer Technical Support services for Sprint's network upgrade.

Lucent also will continue to support Sprint through its Lucent Market Advantage Program (MAP), which offers a comprehensive set of support tools, information and consulting services including market data, sales training and co-marketing plans designed to help accelerate revenue, differentiate and enhance offers, and deploy services more quickly. Working with Lucent's MAP, Sprint conducted "road shows" in cities throughout the United States for enterprise CIOs to highlight and demonstrate the benefits of 3G mobile high-speed data services.

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