Alcatel lands MTN contract

By Damaria Senne, ITWeb senior journalist

Johannesburg, 14 Feb 2008

Alcatel-Lucent has signed a 20 million euro (R223 million) deal with pan-African mobile operator MTN that will see the international network supplier expand the GSM/Edge network of MTN's Yemen operations.

Announcing the deal yesterday, at the Mobile World Congress, in Barcelona, the company said the contract includes core and radio network equipment, a microwave transmission system and a comprehensive set of telecommunications services, including network integration and deployment services.

Alcatel-Lucent will also provide radio network optimisation and managed services. The project will see MTN Yemen double its base station capacity to support the requirements of urban and rural environments, while at the same time, reduce power consumption by up to 30%, the company said.

Once completed, the new network will increase data transfer speeds, while reducing operating expenses, helping the operator meet growing demand for its services.

"By expanding our ongoing relationship with Alcatel-Lucent, we can be assured that our customers are provided with the best mobile communication experience, including quick, reliable connections that will have a positive impact on regional economic growth," said Raed Ahmad, CEO of MTN Yemen.

More deals

Alcatel-Lucent also announced plans to develop and distribute a prepaid option to operators in the wireless market for use with the BlackBerry platform.

This will enable BlackBerry smartphone users to track the minutes and data they have used against the prepaid amount remaining in their account so they can easily top-up when required.

"We hope this solution will enable more operators in high-growth economies to greatly expand their business opportunity," said Michel Rahier, president of Alcatel-Lucent's carrier business.

It is not yet clear when the roll-out of the prepaid solution will be completed.

Africa, including SA, is one of the markets where the majority of mobile subscribers opt for prepaid contracts rather than post-paid contracts, with researchers estimating that more than 90% of users are on pre-paid plans.

Alcatel-Lucent, in partnership with Samsung, also unveiled an optimised solution that will enable operators to blend GSM/Edge and WiMax networks.

The solution is expected to enable operators who did not migrate to 3G, such as Cell C, to move from GSM/Edge to 4G, via the WiMax path.

At this stage, however, Cell C does not have access to WiMax spectrum, as the Independent Communications Authority of SA has not yet finalised its process to allocate WiMax spectrum to new players.