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T-Mobile extends Nortel contract

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Nortel said this week T-Mobile USA has extended its GSM infrastructure contract with the Canadian vendor for $150 million in new equipment and professional services.

Nortel is one of T-Mobile’s original suppliers, deploying its first equipment with the carrier when it launched as VoiceStream Wireless in 1995. When Deutsche Telekom bought VoiceStream and rebranded it with the global T-Mobile name, Nortel worked on its nationwide GSM expansion and the upgrade of its networks to GPRS and EDGE technologies. Nortel did not participate in T-Mobile’s planned UMTS/high-speed downlink packet access network. The contracts instead went to competitors Ericsson and Nokia. Nortel, however, was in the process of selling its UMTS division to Alcatel-Lucent in an effort to restructure the company to focus on fewer technologies.

Nortel will deliver equipment to boost efficiency and capacity in T-Mobile 26 million subscriber network. The vendor did not say if any of the contract would be for new market build outs.

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