ATLANTA and BEDMINSTER, NJ — Verizon Wireless, the nation's leading wireless service provider, will continue to work with Lucent Technologies (NYSE: LU) under a three-year 1xEV-DO (Evolution-Data Optimized) agreement to provide wireless infrastructure technology for its BroadbandAccess service which uses Verizon Wireless' third generation (3G) data network the fastest commercially available wide-area wireless data service offered in the United States today. During the first two years of this agreement, Verizon Wireless is expected to invest more than $525 million in Lucent's wireless infrastructure technology to expand BroadbandAccess. Verizon Wireless recently announced that, beginning in 2004, it plans to make BroadbandAccess service available throughout additional portions of its national footprint.
This agreement to provide wireless infrastructure technology for Verizon Wireless' BroadbandAccess service is supplemental to existing ongoing supply agreements between the two companies. In October 2003, Verizon Wireless commercially deployed its BroadbandAccess service in two key markets with Lucent as the primary supplier in Washington, D.C.
BroadbandAccess is powered by a 3G CDMA2000® 1xEV-DO wide-area network. Under this agreement, Lucent will upgrade existing Lucent base stations with 1xEV-DO Modem Cards and software and provide 1xEV-DO-enabled Flexent® Modular Cell 4.0 base stations as required. Verizon Wireless will also upgrade its core network utilizing Lucent supplied 1xEV-DO Radio Network Controllers (RNCs) and Element Management Systems. Lucent Worldwide Services will provide network installation, integration, and optimization services.
"Given the success of the initial commercial deployment of this high-speed data network and our long-standing relationship with Lucent Technologies, we look forward to working with Lucent again on this industry-leading service," said Richard Lynch, executive vice president and chief technical officer, Verizon Wireless. "Our customers in Washington, D.C. have told us how BroadbandAccess has improved their productivity and has made them look smart to their customers."
The BroadbandAccess service allows enterprise customers to access information when they are out of the office at speeds that are faster than those offered via any other commercially available wide-area wireless data service in the United States. With data transmission bursts of up to 2 Megabits per second (Mbps), BroadbandAccess customers can download a 1 Megabyte e-mail attachment (for example, a small PowerPoint presentation or a large PDF file), or receive three digital pictures (each 400 x 600 pixels) in less than 30 seconds, which is three to four times faster than using EDGE service, and as much as ten times faster than on a GPRS network. Customers can also use this high-speed data service to access rich graphic content, video, music and more.
"We're excited to take this next step with Verizon Wireless as it expands the BroadbandAccess service," said Cindy Christy, president, Mobility Solutions for Lucent Technologies. "The new 1xEV-DO network should quickly enable a whole host of new revenue-generating multimedia services that businesses and consumers are demanding."
About Verizon Wireless
Verizon Wireless is the nation's leading provider of wireless communications. The company has the largest nationwide wireless voice and data network and 37.5 million customers. Headquartered in Bedminster, NJ, Verizon Wireless is a joint venture of Verizon Communications (NYSE:VZ) and Vodafone (NYSE and LSE: VOD). Find more information on the Web at www.verizonwireless.com. To receive broadcast-quality video footage of Verizon Wireless operations, log onto www.thenewsmarket.com/verizonwireless.
About Lucent Technologies
Lucent Technologies designs and delivers the systems, services and software that drive next-generation communications networks. Backed by Bell Labs research and development, Lucent uses its strengths in mobility, optical, software, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for its customers, while enabling them to quickly deploy and better manage their networks. Lucent's customer base includes communications service providers, governments and enterprises worldwide. For more information on Lucent Technologies, which has headquarters in Murray Hill, N.J., USA, visit www.lucent.com.
NOTE: This press release contains statements about expected future events and financial results related to Verizon Wireless that are forward-looking and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The following important factors could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: materially adverse changes in economic conditions in the markets served by us, an adverse change in the ratings afforded our debt securities or those of Verizon Communications by nationally accredited ratings organizations, the effects of the substantial competition that exists in our markets, which has been intensifying, and which may intensify further as a result of local number portability regulations that allow wireless customers to retain their phone numbers when switching wireless service providers, our ability to obtain sufficient financing to satisfy our substantial capital requirements, including to fund capital expenditures, debt repayment and distributions to our owners, our ability to obtain sufficient spectrum licenses, particularly in our most densely populated areas, our ability to develop future business opportunities, including wireless data services, and to continue to adapt to the changing conditions in the wireless industry, our ability to receive satisfactory service from our key vendors and suppliers, our ability to generate additional subscribers, with acceptable levels of churn, from resellers and distributors of our service, material changes in available technology, and technology substitution that could impact the popularity and usage of our technology, our continued provision of satisfactory service to our subscribers at an acceptable cost, in order to reduce churn, the impact of continued unionization efforts with respect to our employees, regulatory developments, including new regulations that could increase our cost of doing business or reduce demand for our services, developments in connection with existing or future litigation, and changes in our accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings.