LOS ANGELES-As expected, AirTouch Cellular signed a letter of intent with Nortel Networks to purchase network switches, base stations and controllers.
RCR reported last week AirTouch was close to awarding Nortel the contract.
Under terms of the letter of intent, AirTouch will purchase analog and cdmaOne network infrastructure to replace Motorola Inc. equipment in its Los Angeles market.
“When we went out to bid for equipment for our expansion into the Southern California desert area, Nortel Networks made us a very compelling offer to supply new equipment for all of Los Angeles,” said Nancy Hobbs, executive vice president and general manager with AirTouch.
However, sources indicate the original contract was to replace Motorola’s equipment due to network problems.
Following the Los Angeles deal, Nortel Networks will supply about 40 percent of the network infrastructure for AirTouch’s U.S. cellular markets.
As part of its multivendor strategy, AirTouch said it remains committed to Motorola, which still provides millions of dollars of equipment for about 40 percent of AirTouch’s cellular networks in the United States. Lucent Technologies Inc. and Ericsson Inc. supply the remaining 20 percent of network infrastructure for AirTouch’s U.S. cellular markets.
