Alcatel gets four-score draw with US ADSL deal

Alcatel Alsthom has been chosen to provide four US telcos with asymmetric digital subscriber line (ADSL) technology.

The four - Ameritech, Bell South, Pacific Telesis and SBC Communications - announced last summer that they were jointly searching for an ADSL supplier, and soliciting for bids.

The contract with Alcatel was announced last week but is not expected to be finalised until the end of the year. Other tenders came from US-based Westell Technologies and Swedish telco Ericsson.

ADSL will allow Internet access speeds at 1.5Mbps to 6Mbps, and Alcatel claims it will sell the devices for less than $500, although all five firms said a price had not yet been agreed for the equipment.

The deal is an important one for Alcatel, which lost a record Fr25.6 billion last year, as it attempts to move away from its traditional switching and cable business to the IT market.