Nortel Networks Ltd. said it has won a contract extension with T-Mobile USA to provide GSM, GPRS, EDGE and packet core wireless data network upgrades and related professional services.
The value of the deal was not disclosed, however, Nortel said it is the vendor’s largest contract with T-Mobile USA. In May 2003, Nortel signed a $300 million agreement with T-Mobile USA.
The contract, which involves radio access and core networks, will cover cities such as New York, Chicago, Dallas, Denver, Detroit, Phoenix and Milwaukee. The deal will enable the carrier to provide services such as visual communications, two-way text messaging, instant messaging, Web browsing and gaming.
“The wireless network deployments will enable T-Mobile USA to leverage Nortel Networks’ presence across our national network to provide greater capacity and quality in a very cost-effective manner,” said Sue Swenson, chief operating officer at T-Mobile USA.
Nortel also supplies UMTS equipment to several of T-Mobile International’s European subsidiaries.
The deal comes as Nortel faces regulatory inquiries and shareholder lawsuits regarding its financial reporting during the past several years. The company earlier this month announced it will lay off a further 10 percent of its work force.
