dailywireless.org » Verizon’s $6B Smackdown

Verizon’s $6B Smackdown

Alcatel-Lucent today announced a three-year, US$6 billion deal to supply network equipment, software and services to Verizon Wireless.

With this agreement Alcatel-Lucent continues to be Verizon Wireless’ primary network infrastructure supplier and will continue to help grow Verizon Wireless’ already successful, existing portfolio of multimedia and data services.

Existing Alcatel-Lucent-supplied packet switches will be upgraded to support IP soft handoff and the Alcatel-Lucent 7750 Service Router will provide IP routing and Ethernet aggregation. IMS services will be enabled through the addition of Alcatel-Lucent’s IMS platforms.

“The $6 billion investment we’re announcing today is indicative of our willingness to further separate us from our competitors in the marketplace,” said Dick Lynch, chief technology officer and executive vice president of Verizon Wireless. “We will deliver value over fully interoperable IP-services that enhance the lifestyles of our customers — by offering multimedia services that combine voice, data, and video capabilities.”

At the upcoming Cellular Telecommunications Industry Association trade show (CTIA 2007), in Orlando, Florida, March 27-29, Alcatel-Lucent will also show off their CDMA Modular Cell 4.0 Compact for 700 MHz deployments. The 700 MHz Modular Cell 4.0 Compact base station supports the needs of public safety organizations by providing secure, priority access using EVDO-Rev A cellular technology.

“We’re pleased to be able to provide public safety organizations with a high-quality, reliable mobile network solution that leverages the power of our commercial platform,” said Mike Iandolo, president of Alcatel-Lucent’s CDMA/EV-DO endeavors. “Public safety and other personnel will be impressed with the high-quality voice and the very high-speed capabilities.”

Alcatel-Lucent is building a 700 MHz EV-DO public safety network in Washington DC. Verizon could take the technology nation-wide this fall. In December 2006, the FCC proposed its own plan to dedicate half of the already-promised 24 MHz for first responders. But public safety officials say it’s not enough.

The federal government has spent $195 million on IWN, the Integrated Wireless Network, reports the Washington Post. But the 700 MHz public service radio network, designed to deliver interoperability for the nation’s law enforcement agencies, is at “high risk of failure,” according to the Justice Department’s inspector general report this month (pdf).

General Dynamics (above) and Lockheed are now competing to win the final phase of the IWN contract. General Dynamics (with Verizon) and Lockheed (with Sprint) may (or may not) provide a 700MHz flavor of EVDO to their Project 25 radio path for broadband. But they probably will.

Inspector General Glenn A. Fine blamed delays, funding shortfalls and infighting among the Justice, Homeland Security and Treasury departments, whose 81,000 agents are expected to use the $5-$30 billion system when it is completed by 2021.

Our audit found that the IWN program is facing significant challenges and a high risk that the joint narrowband communications network originally envisioned for the DOJ, DHS, and Treasury will not be realized. Despite over 6 years of development and more than $195 million in funding for IWN, apart from one pilot system DOJ law enforcement agents have received little in the way of new, secure, compliant radio equipment through IWN.
We found that the causes for the risk of failure include uncertain funding to complete the project, disparate departmental funding mechanisms, a fractured IWN partnership, and the lack of an effective governing structure for the project.

Verizon’s deep pockets could give it an advantage over upstart 700 MHz competitors like Frontline Communications, Cyren Call Communications and consortiums composed of high tech companies like Google, Yahoo, Microsoft and Intel who hope to establish a more “open” platform on the 700 MHz band.

The First Response Coalition, a nonprofit organization in Washington, is lobbying the federal government to create a national interoperability plan (pdf). They claim to represent public safety interests but receive significant funding from Verizon Communications. A sophisticated promotional campaign is now underway.

Watch your backside.

A knock-down, drag-out fight for the handful of 700MHz frequencies is scheduled this fall.

It could be the ultimate smackdown — a battle between cellular’s closed “walled garden” and Silicon Valley upstarts promoting open architecture and a more “net neutral” policy.

Both promote “dual-use” — using the same 700 MHz wireless broadband architecture for both police agencies and the general public.

The Silicon Valley upstarts want to enable devices like Apple’s iPhone to utilize a variety of software and applications. Verizon, Sprint and Cingular plan to stop the “new age” challengers.

Dead.