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NORTEL SUPPLY AGREEMENT EXPANDED BY OMNIPOINT

NEW YORK-Omnipoint Corp. has increased its five-year supply agreement with Northern Telecom Inc., covering the initial deployment by year’s end of a pilot personal communications services network in the Wall Street financial district of New York City.

The contract will increase in value from $100 million to $250 million for equipment and services, according to Nortel. The equipment manufacturer and Omnipoint also have signed a vendor financing agreement that allows Omnipoint to borrow funds to help the company build the New York market. Omnipoint holds a pioneer’s preference PCS license for the New York metropolitan trading area and intends to use its own Interim Standard-661 hybrid digital system.

Nortel will deliver a turnkey digital PCS network that integrates the switching of Global System for Mobile communications technology with IS-661 base station radio equipment.

The two companies plan to sell the network technology to other operators in North America.

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