Time Warner Telecom Expands Network with $250 Million Lucent Deal

By Erik Kreifeldt

Time Warner Telecom has extended its supplier arrangement with Lucent Technologies for three years to the tune of $250 million. "We're essentially expanding our relationship with Lucent," reports Bob Meldrum, Time Warner Telecom's director of marketing, noting that the contract is not exclusive.

Lucent will supply the facilities-based competitive local exchange carrier optical networking, communications software, switching, and access products, as well as engineering, installation, technical support, and other services. The contract includes orders for narrowband digital cross-connect equipment (DACS II and DACS IV-2000), SONET gear (DDM-2000 and FT-2000), and SLC 2000 and ConnectReach access systems.

"Time Warner was also very serious about evaluating our next-generation SONET equipment," reports John Beagley, v.p. of global new markets in Lucent's Optical Networking Group. Rolling out an evolution path to optical networking helped seal the deal with Time Warner, he adds. The agreement includes provisions for equipment from Lucent's WaveStar line, including the BandWidth Manager, 16- and 80-channel dense wavelength division multiplexing (DWDM) systems, and OC-48 and OC-192 SONET equipment. "If we had not had products in a short-term development cycle, it would have been a show-stopper," Beagley concludes.

Time Warner will use the new equipment to expand its operations in the 19 U.S. cities and set up facilities in new markets, Meldrum says. In 1999, the CLEC will add Internet services to its portfolio of switched services and dedicated transport services to medium and large businesses, he continues, adding that the supply contract for Internet gear is still up for grabs. In addition to Lucent equipment, Time Warner has also deployed Xylan and GDC switches.

The agreement includes Lucent's CONNECTVU element management system and WaveStar sub network management system, and maintains the position of Lucent's 5ESS AnyMedia Switch at the core of Time Warner Telecom's network.