Alcatel-Lucent Snags $6 Billion Hardware Contract With Verizon

Includes: NOK, NT, VZ
by: Mark Evans

Alcatel-Lucent (ALU) has snagged a three-year, $6-billion contract to supply hardware, software and services to Verizon Wireless (NYSE:VZ), which wants to expand its network to offer high-speed access and video.

The deal comes three months after Nortel (NT) unveiled a $2-billion, five-year contract with Verizon. “While not wholly unexpected … it is encouraging that Verizon is extending its strong Lucent ties to the merged company,” said Prudential Equity Group analyst Inder M. Singh, who rates Alcatel-Lucent “over-weight” with a target price of $23.

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