US$1 Billion 3G Network Contract

US : Verizon Wireless has signed a multi-year agreement with Nortel Networks 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.

Inset is Pascal Debon, President, Wireless Networks, Nortel Networks quoted below.

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 to 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.