The French vendor will focus on building out small cell transmitters and Wifi equipment for the UK-based operator, with the technology designed to deal with high data demands and enable coverage in built-up areas.
Financial details of the agreement were undisclosed, but the move represents Alcatel-Lucent’s first involvement in Vodafone’s Project Spring investment plan.
Vodafone has committed £7 billion to upgrade its mobile and fixed-line networks to accommodate 4G and fibre in Europe, and is the largest investment plan in Europe.
Chinese vendor Huawei was awarded a similar contract by Vodafone for a range of Project Spring initiatives earlier in the year.
Through Alcatel-Lucent’s small cell technology, Vodafone will be able to provide closer connections to end users and improve data services.
Alcatel-Lucent could potentially become Vodafone’s supplier for small cell across the world, and the company has invested significantly in the technology under its new CEO Michel Combes.
Alcatel-Lucent is also undergoing a restructuring program, with a large proportion of its budget now being spent on R&D for internet networking and faster broadband services, including a €1 billion cost-cutting exercise.