Motorola wins Verizon fiber network deal

Motorola announced Wednesday that it has won a contract to supply Verizon Communications with optical networking equipment to build its fiber-to-the-premises network. Motorola's contract for optical infrastructure equipment builds on a deal it announced in October 2004 to supply Verizon with video gear.

While details of the latest contract were not disclosed, analysts from Lehman Brothers believe that it could be worth up to $1 billion over the next five years. Verizon plans to run fiber into more than 2 million homes and business in 2005. It will use the new network to launch applications such as its first TV service later this year.