Lucent Tech Bags $175m Deal From Hughes Tele.Com

Lucent Technologies has bagged a $175 million contract from Hughes Tele.com India (formerly Hughes Ispat) to build a broadband telephone network in the country. Hughes Tele.com is a telephone service operator in the states of Maharashtra and Goa. Under the terms of the 3-year contract Lucent will supply the equipment and technical expertise to Hughes for laying the network.

Hughes will provide a suite of both telephony and Internet services over the broadband network which will be rolled out in 17 cities by 2002.

"We chose Lucent Technologies because it has the expertise and technology backing of Bell Labs, its research and development group, and an excellent in-country team to enable us to provide value and quality services to our customers," said Prakash Bajpai, president and chief executive officer of Hughes Tele.com.

Lucent will provide switching centers incorporating Lucent's flagship 5ESS switch, AnyMedia Access Systems, AnyMedia Optical Networking Units, Intelligent Network software and service management systems, power systems and support services including the construction of outside plant.

The total investment that Hughes will make to establish the network is of the order of $750 million until 2002 -to be raised through debt and equity. Funds to the tune of $ 150 million have already been raised via the equity route. Of the rest, $180 million will be further raised as equity, while the balance $ 400 million plus will be arranged as debt. Financial institution ICICI is the leader underwriter and syndicator for Hughes Tele.com.

While Hughes currently has over 22,000 lines in service its target is 220,000 lines by 2002. A Hughes statement said, "Hughes is set to offer broadband wired and wireless services using state-of-the-art technology including last mile optical fibre and is positioning itself as a single platform for all communications needs. It also plans to establish itself as a major Internet service provider for the country and to develop itself into an application service provider (ASP) for business customers.

Lucent will provide Intelligent Network software and management systems that will allow Hughes to deploy a variety of enhanced services on its network, including Lucent's SurePay solutions suite.