Lucent Edges Higher on Equipment Deals

Lucent Technologies (NYSE: LU) advanced 37 U.S. cents to $10.08 in morning trading Tuesday, following news of deals with Global Crossing (NYSE: GX) and China Unicom (NYSE: CHU).

Lucent said it landed Global Crossing as the first customer for its WaveStar LambdaRouter communications switch. The "multimillion-dollar" agreement calls for Global Crossing to use the equipment to connect, send and distribute data traffic over its multi-cable, transatlantic optical network, according to Lucent, which plans to begin installing the systems this month.

Lucent said the LambdaRouter is 16 times faster than electronic switches used in communications networks, and is capable of routing billions of e-mail messages a second. Installation is set to be completed in the third quarter of this year.

"Maintaining all-optical traffic through the LambdaRouter will enable Global Crossing to offer 'instant Internet' and deliver other high-speed data and video services more quickly, securely and cost-effectively," said Wally Dawson, executive vice president of Global Crossing's global network division.

Global Crossing tested the router last year between New York City and England. Lucent said "several" other customers are also testing the system.

In other news, Lucent was also one of several companies reported to be part of a $1.5 billion deal to supply China Unicom with equipment for a mobile communications network. Ericsson (Nasdaq: ERICY), Motorola (NYSE: MOT) (NYSE: MOT) and Nortel (NYSE: NT) Networks (NYSE: NT) were also reported winners.

Earlier this month, Lucent announced a management restructuring that included the replacement of its chief financial officer. In January, the Murray Hill, New Jersey-based company began a streamlining plan designed to save money and boost working capital.