DALLAS -Nortel * [NYSE/TSX: NT] announced a contract renewal agreement with Sprint* [NYSE: FON] estimated to be worth approximately US$1 billion over three years to deploy enhanced wireless infrastructure equipment and provide professional services to support the continued expansion of the Nortel portion of Sprint's nationwide third generation (3G) wireless network. The agreement also covers a potential broadband data upgrade to 1xEV-DO Release A or 1xEV-DV Release D technologies.
Under this new agreement, Nortel will provide CDMA2000 1X radio base stations, base station controllers, switching platforms and other related equipment across Sprint's existing Nortel footprint. Nortel will also supply Sprint with the new Nortel PDSN (Packet Data Service Node) 16000. Sprint plans to leverage this platform's industry-leading capacity and performance, combined with innovative features like advanced billing capabilities, to facilitate network capacity growth and expand its wireless packet data service offerings. The agreement also calls for Nortel to provide CDMA2000 1xEV-DO equipment in several key markets across Sprint's nationwide network. Earlier this year, Sprint announced plans to design and deploy EV-DO, with initial service available in select markets in 2004 and general launch in the majority of top metropolitan markets in the United States in 2005.
"Sprint intends to remain the industry leader in wireless data by expanding our 1X network and deploying EVDO technology to meet customer demand for faster wireless data speeds," said Oliver Valente, vice president, technology development, Sprint. "Nortel has been a key contributor in our efforts to improve network performance and quality while at the same time reducing operating costs and leveraging existing infrastructure investment."
EV-DO is a broadband radio technology that can support transmission speeds higher than those currently available using ADSL. With average speeds of 300-500 kilobits per second and peak rates up to 2.4 Megabits per second for downloads, EV-DO can provide mobile device data speeds up to 10 times faster than currently available on today's network. With EV-DO, Sprint's customers will also experience superior application and service performance on EV-DO-capable handsets and laptops equipped with EV-DO-enabled Sprint Connection Cards.
"This renewal agreement further demonstrates the strength of our relationship with Sprint and our commitment to support delivery of advanced mobile voice and data services," said Richard Lowe, president, CDMA Wireless Networks, Nortel. "Nortel CDMA equipment is designed to support EV-DO through simple upgrades to existing hardware, which means Sprint's migration from 1X to EV-DO will require no 'forklift upgrades.' This approach provides a cost effective and rapid method for enhancing the end user experience by delivering advanced wireless services and applications." Nortel has designed, installed and launched more than 300 wireless networks in over 50 countries across the globe. Nortel was the industry's first supplier with wireless networks operating in all advanced radio technologies (GSM/GPRS/EDGE, CDMA2000 1X and 1xEV-DO, UMTS and WLAN), and is the only end-toend provider of all next generation wireless solutions.
About Nortel
Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world's most critical information. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.
*Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks. Sprint is a registered trademark of Sprint Communications
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