Sprint, Nortel Networks Sign Contract Worth at Least $520 Million to Expand Largest US PCS Wireless Network
Coverage Will Include Sprint's Campus in Kansas City
KANSAS CITY, Mo., June 9 /PRNewswire/ -- Sprint today signed a three-year contract with Nortel Networks* (NYSE: NT; Toronto) worth at least $520 million for cdmaOne* (IS-95 CDMA) equipment and services for Phase III of Sprint PCS' nationwide wireless network development and expansion.
The contract represents the continuation of a successful relationship between Sprint and Nortel Networks, with Nortel Networks providing solutions for all three phases of Sprint's wireless network deployment. The two companies have previously announced $1.5 billion in contracts during the last three years of Sprint PCS' national rollout of its 100-percent digital, 100-percent PCS nationwide wireless network.
Under the new contract, Nortel Networks will provide equipment and services that will enable Sprint PCS to expand coverage and increase network capacity to meet rapidly growing customer demand. Similar to its earlier two agreements with Sprint PCS, Nortel Networks will supply and install CDMA network infrastructure equipment and services, including the flexible and third generation (3G)-ready multi-carrier Metro Cell base station, plus switches, intelligent network components and software.
In the first quarter of this year, Sprint PCS recorded the second largest quarter for subscriber growth in U.S. wireless industry history. This followed the company's U.S. wireless industry record in the fourth quarter of last year for the most new subscribers added in any quarter in history.
''As the Sprint PCS subscriber base has grown in record stages in the wireless industry, having responsive network vendors is critical to successfully serving our customers,'' said Keith Paglusch, senior vice president of Operations for Sprint PCS. ''We have enjoyed a long relationship with Nortel Networks and look forward to continuing our work with them as we grow and enhance our network.''
''Nortel Networks' continued relationship with Sprint PCS is a true testament to the quality, reliability and performance of our CDMA solutions,'' said Nancy White, vice-president and general manager, US Region, Nortel Networks. ''The teamwork and dedication of the two companies has allowed the continued success of this nationwide network.''
As part of this contract, Nortel Networks, which is the supplier of infrastructure equipment for Sprint PCS' Kansas City market, will also be the supplier of CDMA infrastructure equipment that will provide PCS coverage at Sprint's new World Headquarters campus in the Kansas City area. The campus will ultimately house more than 14,000 Sprint employees. The campus implementation will be a model for new wireless applications for large businesses, college campuses and government facilities.
Nortel Networks (NYSE: NT; Toronto) delivers value to customers around the world through Unified Networks* solutions, spanning mission-critical telephony and IP-optimized networks. Customers include public and private enterprises and institutions; Internet service providers; local, long-distance, cellular and PCS communications companies, cable television carriers, and utilities. Nortel Networks' common shares are listed on the New York, Toronto, Montreal, Vancouver, and London stock exchanges. Nortel Networks had 1998 revenues of US$17.6 billion and has approximately 75,000 employees worldwide. For more information visit Nortel Networks' web site at www.nortelnetworks.com .
Sprint PCS operates the largest 100 percent digital, 100 percent PCS nationwide wireless network in the United States, already serving the majority of the nation's metropolitan areas including more than 4,000 cities and communities across the country. Sprint PCS has licensed PCS coverage of nearly 270 million people in all 50 states, Puerto Rico and the U.S. Virgin Islands. For more information, visit the Sprint PCS web site at sprintpcs.com . Sprint PCS is a wholly-owned tracking group of Sprint Corporation (NYSE: PCS - news) trading on the NYSE under the symbol ''PCS.''
Sprint is a global communications company at the forefront in integrating long distance, local and wireless communications services and one of the world's largest carriers of Internet traffic. Sprint built and operates the United States' only nationwide all-digital, fiber optic network and is the leader in advanced data communications services. Sprint has $17 billion in annual revenues and serves more than 17 million business and residential customers.
* cdmaOne is a trademark of the CDMA Development Group
* Nortel Networks and Unified Networks are trademarks of Nortel Networks
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