T-Mobile USA re-ups with Nortel

T-Mobile USA Inc. and Nortel Networks Ltd. have agreed to a $150 million multi-year extension of their contract for wireless voice and data services. The contract extension will add capacity to the No. 4 carrier’s existing network and address coverage growth in current markets, a Nortel spokeswoman said.
The contract does not call for any upgrades to third- or fourth-generation networks, she said. It will help boost T-Mobile’s network efficiency and capacity, and enable T-Mobile to meet continued growth in traffic.
Through the agreement, T-Mobile will continue to purchase Nortel equipment and services for its nationwide network. The deal extends a long-standing relationship between the two companies. Nortel supported GSM network planning and deployment for T-Mobile since the company’s inception as VoiceStream Wireless in 1995, according to Nortel.
“T-Mobile USA’s previous deployments with Nortel enabled us to support more subscribers with a marked improvement in network performance, capacity and call quality,” said Neville Ray, senior VP of engineering operations at the carrier.
T-Mobile USA currently serves 26 million wireless subscribers in the United States and is a wholly owned subsidiary of T-Mobile International, the mobile arm of Deutsche Telekom AG.
T-Mobile USA won a number of licenses through last year’s advanced wireless services spectrum auction, also referred to as auction 66. The carrier has promised to offer 3G services through its new spectrum.