Alcatel-Lucent has entered a new agreement with Vermont Telephone Company (VTel) to boost the US firm's broadband credentials and enhance its internet services.

In a bid to increase consumer broadband access and boost economic growth, VTel will heighten the capabilities of its data transmission and broadband access network through the new partnership.

In deploying a 100 gigabit per second optical transport network, fiber-optic broadband access and an IPTV delivery system, Alcatel-Lucent will seek to increase connectivity in the Southern Vermont service area.

Robert Vrij, president of Alcatel-Lucent's Americas region and head of its strategic alliances, said: "The introduction of 100G with VTel will offer a tremendous boost to their capabilities and in a very cost effective way."

As well as addressing the need for speedier and more reliable broadband services, the move will also aim to expand the availability of video-on-demand to subscribers in VTel's telephone service territory.