Lucent counts BellSouth, SBC, and Cingular Wireless among its customers for IMS products and services. The IMS architecture uses a digital interface to provide multimedia services over wireless and wireline networks. Lucent has several IMS contracts in its bag and the potential revenue is to the tune of hundreds of dollars.

According to UBS Warburg, Lucent could be involved in IMS deployments in the range of $ 75 million to begin with but will see revenue generation only in FY 2006. Lucent has to evolve a business plan that will enable it to earn revenue from the end users. Lucent is also concentrating on 3G wireless mobility, optical/data convergence, and broadband access. The demand for these services is set to increase and according to UBS, these services could grow at a CAGR of up to 41% in the next four years.