Verizon Wireless Selects Nortel Networks for US$500 Million Network Buildout Submitted by: Pleon Wednesday, 12 April 2000
Wireless, Optical Investment Paves Way for Expanded Capacity and Coverage to Meet Strong Customer Demand NEW YORK - Moving quickly to fulfil the bold promise of its new national brand, Verizon Wireless today announced it signed a letter of intent to purchase an estimated US$500 million in wireless and optical equipment from Nortel Networks* [NYSE/TSE: NT]. This planned agreement is expected to provide significant savings to Verizon Wireless' network infrastructure costs. Nortel Networks and Verizon Wireless expect to enter into a two-year agreement that will enable Verizon Wireless to increase capacity and coverage in key markets and offer high-capacity, cost-effective and reliable wireless services to its customers nationwide. The agreement also is expected to include optical transport and asynchronous transfer mode (ATM) switches for major metropolitan markets, and additional equipment for expansion of an existing microwave backbone network. Last week, Verizon Wireless announced one of the wireless industry's largest planned capital investments. By the end of 2000, the company will invest more than US$3 billion in its nationwide network to further expand its digital footprint and increase capacity for wireless voice and data services. This investment will involve the properties of GTE Wireless (based on the close of the Bell Atlantic and GTE Corporation merger). "Continued investment in our CDMA network will enable Verizon Wireless to efficiently and cost-effectively expand its CDMA network to support today's subscriber growth and meet future growth forecasts," said Richard Lynch, executive vice president and chief technical officer of Verizon Wireless. "CDMA has proven itself as the best, most efficient digital service in the industry. Plus CDMA technology offers a clear and cost-effective path to 3G