Sprint (NYSE: FON PCS) and Motorola announced a six-year deal under which Motorola will supply equipment and services for the next phase of Sprint's nationwide PCS wireless network development and expansion. The value of the contract during the next two years is expected to be $200 million.
Under the agreement, Sprint will purchase Motorola's base station hardware and software, smart antenna technology, new vocoders and CDMA 1X enhancements to support third generation (3G) services. This agreement is congruent with Sprint's planned enhancements to its wireless PCS network infrastructure and is a key part of its migration to 3G services.
The deployment of Motorola's wireless system is intended to help Sprint provide its customers with faster data speeds and enhancements for existing applications and services. These higher speeds are expected to enable consumers to download music and data to portable wireless devices such as phones, laptops and personal digital assistants (PDAs) directly from the Internet. Business customers are expected to be able to open e-mail attachments using wireless modems in their laptops without seeking a payphone or using expensive hotel connections.
"Motorola and Sprint PCS remain committed to delivering new, innovative wireless services to our customers," said Dennis Huber, senior vice president, network/IT, Sprint PCS. "We expect to have the most cost-efficient network evolution in the industry."
"Our CDMA migration solutions from IS95A to CDMA2000 1x and 1xEV higher- speed data solutions are expected to enhance services offered by Sprint PCS on its wireless voice networks," said Fred Wright, Motorola senior vice president and general manager of its Global Telecom Solutions Sector.
Later this year, Motorola is scheduled to begin the 3G upgrade to its base stations in Sprint's existing network.