$1bn each proves a timely tonic for Nortel and Lucent

NEWS American telco Sprint has given Nortel and Lucent a much-needed injection of funds by awarding each company a $1bn contract to build its 3G network. The two contracts, running over three years, could not come at a better time for the struggling companies. Lucent is expected to axe 10,000 jobs in July when it announces its third quarter results. This comes on top of the 10,000 job losses last month and the planned early retirement schemes for 13,000 employees. Nortel is facing the loss of 30,000 employees after posting third quarter losses of $19.2bn in June. Under the terms of the agreements, Lucent will deploy base stations, mobile switching centres and wireless intelligent network software. As well as base stations, Nortel will provide integration services and network equipment.