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Sprint to award contracts
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September 25, 1997: 6:48 a.m. ET
Telecom company spending $700M on digital wireless phone equipment
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NEW YORK (CNNfn) - Sprint Corp. is expected to give Motorola Inc. and Northern Telecom Ltd. $700 million in contracts for digital wireless telephone equipment.
The money will be used to buy about 3,500 digital cellular telephone communications hubs that will go into Sprint's PCS nationwide wireless network, The Wall Street Journal reported in its Thursday edition.
Officials at Sprint would not verify the deal, saying an award should be publicly announced in the next few days.
Sprint recently purchased several blocks of the wireless spectrum from the Federal Communications Commission. The equipment will go toward providing service in the new territory.
According to the Journal, Lucent Technologies Inc. was one of the bidders, but lost out over pricing terms.
While the dollar value of the deal is significant, the contract is also important as it is the first large deal for a new form of digital wireless technology called code-division multiple access. CDMA allows a buyer to purchase technology from a variety of vendors and be assured that the equipment will be compatible.
Motorola is expected to get about 60 percent of the new contract and Nortel the remainder.
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Sprint
Nortel
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