Sprint PCS said it expects to spend up to $700 million during the next three years with Lucent Technologies Inc., which will supply equipment and services for the next phase of Sprint PCS’ nationwide wireless network expansion.
The new contract allows Sprint PCS to expand coverage in existing and new markets, including Las Vegas; Riverside, Calif.; southern New Jersey; and Colorado Springs and the Vail and Summit County ski areas in Colorado. Lucent will supply and install Code Division Multiple Access network infrastructure and services including base stations, switches, software and professional services.
Unlike Lucent’s $500 million contract with PrimeCo Personal Communications L.P. awarded in March, Sprint PCS’ contract with Lucent is not exclusive, said Keith Paglusch, senior vice president of technical services and network operations. Sprint PCS has existing contracts with Motorola Inc. and Northern Telecom Inc. as well.
“We are very pleased with all three vendors, and we absolutely have intentions of expanding our nationwide footprint with all three vendors,” said Paglusch.
Lucent and Nortel won contracts, valued at $3 billion, in 1996 to build networks in Sprint PCS’ A- and B-block markets. Motorola pulled out of negotiations for those contracts because it couldn’t reach acceptable financial and commercial contracts with the carrier. Last September, Sprint Corp. awarded both Nortel and Motorola contracts to build out its D- and E-block basic trading areas.
Sprint Corp. earlier this month announced a deal to gain ownership and management control of Sprint PCS, its venture with cable partners Tele-Communications Inc., Cox Communications Inc. and Comcast Corp.
Sprint PCS said it will launch some D- and E-block markets later this year and plans to sign more affiliate agreements with carriers. The company recently signed affiliate agreements with Louisiana Unwired L.L.C., Meretel Communications L.P., Roberts Wireless Communications L.L.C., Horizon Personal Communications Inc., Georgia PCS Management L.L.C. and Brookings Municipal Utilities. Sprint PCS said its affiliates will have access to its vendor contracts as well.
