NEW YORK – Alcatel-Lucent won a three-year contract worth $6 billion to supply Verizon Wireless with network equipment, software and services, the companies said on Monday, lifting shares of the French telecommunications equipment maker.
Alcatel-Lucent will provide a wide range of products to help Verizon Wireless, a joint venture of Verizon Communications and Vodafone Group Plc, boost the coverage and capacity of its broadband network based on CDMA2000 technology, they said.
Alcatel-Lucent, formed through a transatlantic merger last year, will continue to be the primary network infrastructure supplier to Verizon Wireless, the companies said.
Shares of Alcatel-Lucent rose 5.29 percent to 9.16 euros after briefly rising as high as 9.23 euros.
The shares have been stuck in a bearish trend since the company issued a profit warning in mid-January that highlighted the complexities of the merger and raised concerns of slower spending amid consolidation in the telecommunicatinos sector.
Shares of Verizon Communications moved little in pre-market trade. They closed on Friday at $38.12.