RICHARDSON, Texas-Equipment manufacturer L.M. Ericsson and Omnipoint Corp. have signed an agreement valued at $250 million for Ericsson to supply Omnipoint with Interim Standard-661 and PCS 1900 network equipment and services.
The memorandum of understanding includes $40 million for IS-661 and PCS 1900 phones and $60 million for dual-mode IS-661/PCS 1900 phones, said Omnipoint.
Both technologies are based on Global System for Mobile communications network architecture. IS-661 is Omnipoint’s proprietary technology. Ericsson will acquire a multimillion dollar license for IS-661, Omnipoint said.
Omnipoint is building a personal communications services network in the New York major trading area, which covers 27 million people. Omnipoint previously signed a $250 million contract with Northern Telecom Ltd. for IS-661 and PCS 1900 equipment. The company estimates it ultimately will purchase more than $700 million in PCS equipment and services.
Omnipoint intends to participate in the C-block auction of PCS spectrum. As Omnipoint PCS Entrepreneurs Inc., it has placed a $40 million upfront payment with the Federal Communications Commission.
