Sprint Completes Contracts to Upgrade Wireless Network
Dec. 8–KANSAS CITY, Mo. — Sprint Corp. has completed contracts worth about $3 billion to upgrade its wireless network and add a faster data service to its list of offerings.
The Overland Park company said Tuesday that it recently signed three-year contracts with Lucent Technologies and Nortel Networks and extended a contract with Motorola Inc.
About $1 billion of the contracted work will involve upgrading the wireless network to provide broadband-speed data services through a technology known as EV-DO (Evolution, Data Only). The remaining $2 billion will involve building out the network, upgrading hardware and software for switching wireless calls, and increasing network capacity.
In a released statement, Kathy Walker, Sprint’s executive vice president for network services, said the investment would “make a dramatic difference in shaping the customer experience of tomorrow.”
Walker said consumers will have access to high-speed video and audio streaming and other services, while business customers will be able to use wireless applications that improve productivity and collaboration.
In June, Sprint announced plans to upgrade its wireless network to EV-DO, which offers data speeds in the 300-to-500-kilobit range.
Sprint had discussed waiting to upgrade the data system, but the work was moved to the front burner after key competitors said they would upgrade their networks.
Verizon Wireless, Sprint’s larger competitor, recently rolled out its EV-DO service in the Kansas City area. Cingular Wireless, the country’s largest wireless carrier, also plans to launch a higher-speed data service.
Sprint said it expected to begin testing its new data service in three markets by the end of the year.
Jennifer Bosshardt, a spokeswoman, said the test markets will include two in the Midwest. For competitive reasons she declined to disclose where the testing will take place.
Next summer Sprint will roll out the service in 39 metropolitan areas — including Kansas City, Bosshardt said. And the company plans a national roll-out in early 2006.
Once the upgrade is complete, the high-speed data service will be available to 129 million potential customers.
Customers involved in the trial will use connection cards for laptop computers. But the company hopes to offer the service through phone handsets when it launches the service next summer.
Sprint said Lucent received a three-year contract to upgrade Sprint’s existing Lucent base stations. Nortel received a three-year contract to deploy wireless infrastructure equipment, including radio base stations, controllers and switching platforms. And Motorola received a contract extension through the end of 2006 to supply equipment.
Sprint shares were down 21 cents Tuesday, closing at $22.84.
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