@MWC: Alcatel-Lucent, Ericsson win big in Verizon Wireless LTE buildout: Nokia Siemens Networks, Starent also awarded wireless network contracts

BARCELONA, Spain – Verizon Wireless fleshed out its LTE plans by naming its network suppliers and setting a commercial launch date of 2010. The company, which plans to initially use its 700 MHz spectrum for the buildout, did not say what the effort would cost.
Verizon CTO Dick Lynch said the carrier expects to launch around 25 to 30 markets in 2010, though he would not say how many people the carrier planned to cover.
During his keynote presentation here during the Mobile World Congress trade show, Lynch said he expects average LTE data rates of around 8 Mbps. However, in a subsequent interview following the presentation, Lynch declined to discuss average LTE data rates, saying only that the carrier saw peak data rates during LTE trials of between 60 and 80 Mbps. He said it was too difficult to provide average, real-world data rates based the untested nature of the technology.
As for the carrier’s suppliers, Alcatel-Lucent was the big winner, nabbing contracts for all three aspects of Verizon Wireless’ LTE buildout: the IP Multimedia Subsystem portion, the enhanced packet core portion and the radio access network portion. L.M. Ericsson will join Alcatel-Lucent in the RAN and packet core buildouts.
Starent Networks also won a portion of Verizon Wireless’ packet core contract, and Nokia Siemens Networks will join Alcatel-Lucent in supplying IMS kit. Interestingly, the IMS portion of the contract appears to include a wireline component; “Verizon plans to offer IMS-based IP converged applications and services on its wireless and landline broadband networks,” the carrier said in a statement. “LTE will be one of the key wireless access networks linked to the IMS technology.”
Verizon Wireless’ LTE buildout is notable in that – at least initially – it likely will use a non-standard version of LTE to meet the 2010 deployment date. Further, Verizon Wireless is one of the first carriers in the world to announce its LTE equipment suppliers, and its selections will no doubt influence others carriers’ choices. Thus, Verizon Wireless’ LTE network equipment suppliers win both in terms of cash and bragging rights.
Although Verizon Wireless did not put a price tag on the buildout, the company said in a statement that “LTE network costs would be within the company’s overall program as spending shifts from older technologies to new strategic initiatives, such as LTE.” Further, the company said that, due to the nature of 700 MHz spectrum, “Verizon Wireless is capable of quickly deploying a high-quality wireless broadband network with excellent coverage and in-building penetration, all at a cost structure significantly below current levels.”
In an interview, Verizon’s Lynch said the carrier does not expect a jump in its annual capital expenditures relate to the LTE build, since it is essentially moving its spending from its EV-DO buildout (which Lynch said was largely finished) to its LTE buildout.
Verizon Communications Inc., parent of Verizon Wireless with Vodafone, spent roughly $17 billion last year on its wireless and wireline networks.
Verizon Wireless and Vodafone said they have been testing LTE networks in Minneapolis, Columbus, Ohio and Northern New Jersey in the United States, as well as in Budapest, D