Verizon Wireless and Nortel sign US$1 Billion Deal

[Kenster]

Verizon Wireless Selects Nortel Networks for US$1 Billion Network Expansion

9/3/2003 8:07:03 AM

BEDMINSTER, NEW JERSEY and DALLAS, TEXAS, Sep 3, 2003 (CCNMatthews via COMTEX) --

Verizon Wireless, operator of the nation's largest wireless network with 34.6 million customers, has signed a multi-year agreement with Nortel Networks (NT) (CA:NT) -- estimated to be worth US$1 billion -- for wireless infrastructure technology, including expansion and upgrade equipment for its nationwide, third generation (3G) voice and data network.

Under this new agreement, Verizon Wireless plans to deploy expansion and upgrade CDMA2000 1X radio base stations, switching, Passport Internet Protocol (IP) platforms, and other related equipment from Nortel Networks in key markets including San Diego, Los Angeles, Las Vegas, Detroit, Atlanta and Cleveland. The agreement also includes a new market build-out and deployment of CDMA2000 1X technology in Myrtle Beach, S.C.

This will give Verizon Wireless additional network capacity to provide digital voice and high-speed data services like Web browsing, streaming audio and video, multimedia messaging, m-commerce and Virtual Private Networks (VPNs) to businesses and consumers.

"Nortel Networks is a primary supplier of Verizon Wireless' nationwide wireless network equipment because of its ongoing quality and innovation," said Richard Lynch, executive vice president and chief technical officer, Verizon Wireless.

"Verizon Wireless has built its reputation on network quality and reliability, and Nortel Networks equipment plays an important role in our ability to deliver the best wireless services in the business," Lynch said. "They have earned this additional business by demonstrating strong performance over the last several years."

"This is a significant announcement for Nortel Networks in our relationship with Verizon Wireless," said Pascal Debon, president, Wireless Networks, Nortel Networks. "We are very pleased to work with the largest wireless operator in the U.S. to deliver new wireless network services to their customers. Our wireless infrastructure technology positions operators like Verizon Wireless to reduce costs and increase revenues by helping them to deliver secure and compelling wireless data experiences to end users."

Nortel Networks solutions will also support Verizon Wireless' plans to offer Wi-Fi (802.11b) service, providing connections between the Verizon Wireless wide area network (WAN) and 'hot spots' across the country.

Nortel Networks has been providing wireless equipment to Verizon Wireless and its predecessor companies since 1996. For example, earlier this year, Verizon Wireless selected Nortel Networks to provide CDMA2000 1X infrastructure in Georgia and Alabama.

Nortel Networks also supplied Verizon Wireless with CDMA2000 1xEV-DO technology in San Diego. CDMA2000 1xEV-DO provides secure peak data transmission speeds up to 2.4 Megabits per second (Mbps), giving mobile professionals access corporate local area networks (LANs) and intranets remotely with performance comparable to wired desktop network connections. Verizon Wireless plans to make CDMA2000 1xEV-DO service commercially available in San Diego later this year.

[GoodmanR]

heard about that this morning....we all must have seen it coming though given what sprint is doing.

[jayc]

What is Sprint doing?

[GoodmanR]

adding over 1000 sites this year along, with similar goals for next year. the verizon plan doesnt come close to this, but its more than nothing...huge expansion by sprint. also improving capacity as well and pretty much revamping customer care

[Codepyro]

goodmanr where did you ge tthis info about sprint adding 1,000 sites...please post the news article..because i browse for cellular news through a lot of different means and i have not seen such an article..

[GoodmanR]

i dont have the link to the site unfortuantely...

larry knows a ton about sprints plans and their massive expansion this year and i bet he can give you a link

[WirelessBeachBum]

adding over 1000 sites this year along, with similar goals for next year. the verizon plan doesnt come close to this, but its more than nothing...huge expansion by sprint. also improving capacity as well and pretty much revamping customer care

FYI, As of last month, Verizon has spent 4 Billion dollars on it's network <u>this year.</u>

[jayc]

Yeah... while I'm glad to see Sprint putting more into build out it's normal for VZW to use a LOT of money per year to enhance the network... after all it's what VZW stands for.

[GoodmanR]

Although they both spend a ton of money, beachbum, verizon hasnt put up anywhere close to the amount of sites that sprint has this year. im by no means saying that sprint has a better network, but just that its probably improved more this year than any other network.

[jayc]

In the south alone there were around 400 new sites going up this year.

[WirelessBeachBum]

Also you may want to consider the huge areas that Affiliates cover for them (Sprint) don't expect many or any new sites in these markets, as most affiliates are having a tough time. They will not be adding any new sites because of the capital they are having to spend in switch upgrades to support PTT.

I'm not throwing rocks blindly at Sprint just to do it, I have been there and done that. (and almost didn't live to tell about it.)

They have great phones, and a pretty good on-net network, however their execution of a business plan is lacking....unless they intend to force their affiliates under in order to buy them off on the cheap. Sprint corporate has made great strides to improve customer service and their network, however their affiliates have been left out in the cold to manage on their own.