Technologies has announced that it has signed an SR75 million ($20
million) agreement with Advanced Electronics Company for locally
manufacturing and testing electronic components for various
telecommunications projects in the Kingdom.
provides for the manufacturing of 1,900 units of LPZ Circuit Packs for
the 170K project, 27,280 Intelligent Telephone Sockets (ITS) for the
TEP6/WLL project and the performance of System Integration and Tests.
Under the same agreement AEC will also import, configure, integrate
and test the equipment needed by Lucent for the implementation of the
Internet Phase III project awarded to it by Saudi Telecom Co.
Soon after the
decision to implement the Kingdom’s
TEP6 Program in August 1994, Lucent had awarded an SR945 million ($252
million) subcontract to AEC for the manufacture of 12 different types
of circuit packs for use in transmission and switching systems. The
switching circuit packs involve advanced manufacturing technology and
are used in Lucent’s 5ESS switching system.
Muhammad Al-Dhalaan, director of public relations, the AEC carried out
the systems integration and test of the 5ESS switch. In early 1999,
Lucent, he said, entered into new agreements valued at SR146 million
with AEC to manufacture switching equipment equivalent to 645K lines,
which involved the transfer of additional technology to enable AEC to
manufacture the new 32-subscriber line card.
implementation of other similar agreements from time to time, the
total value of manufacturing subcontracts awarded by Lucent to AEC has
now reached over SR1.41 billion ($377 million) including the cost of
materials and equipment.
AEC added value
through its labor and expertise in transferring these materials into
high technology communications equipment. Al-Dhalaan said the testing
and integration of the switching equipment manufactured equals about
20 percent of this total value.
Lucent has declared
that it will continue to support the Kingdom’s offset interests in
developing the local economy through the purchase of electronics
products from AEC, said Michael C. Craft, president of Lucent
Technologies. Effective collaboration between AEC and Lucent has been
very productive in the past and would continue in the future too, he