Official reports have confirmed that the giant US telecommunications services provider AT&T has selected Ericsson and Alcatel-Lucent to join hands and effectively build its new LTE high-speed wireless technology network, marking a major order for both the operators.

Although the exact value of the deal has not been disclosed by the companies, Aircom, the telecoms consultancy, has estimated that the whole building process for the Long Term Evolution network could cost as much as $1.78 Billion over the first year in the US for an operator as huge as AT&T.

Verizon, AT&T's major rival, is employing the use of the same vendors to roll out its own network later during the year. AT&T's LTE network, however, is expected to be operational in 2011.

Vendors of mobile equipment are currently tied in a battle to win the first major orders for LTE networks, and till now, Ericsson has been the clear leader, having won many such deals.

"It will have no substantial impact in 2010. In 2011 there will be more substantial deliveries. In 3G Ericsson has a more than 40 percent market share world wide and we certainly have the ambition to have as least as much of market share in LTE", said Head of Ericsson Networks John Wibergh.