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AT&T In Agreements With Motorola, Alcatel

June 23, 2009

AT&T Inc. said that a network equipment supply agreement has been extended with Alcatel-Lucent, and soon there will be cell phones sold from Motorola Inc.

AT&T said on Tuesday that it would start selling Motorola’s Karma phone on June 28 for $79.99.  The phone features a miniature computer keyboard and is aimed at consumers that are looking to use their phones for text messaging or social networking sites.

The device is based off of a proprietary operating system from Motorola, which is struggling to regain market share after its sales have dropped through the years.

AT&T, the second-biggest U.S. provider of mobile phone services, said that it extended the agreement with Alcatel-Lucent to supply equipment used to access AT&T’s U-verse television and high-speed Internet services, which is being broadened throughout the country.

Motorola shares went up 18 cents, bringing it to $6.21 in the morning of the announcement.

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