Sprint investing in 3G networks

Sprint has finalized multiyear wireless services infrastructure build-out agreements totaling approximately US$3 billion with Lucent, Motorola and Nortel. The contracts involve new switching and radio hardware and software for cell sites, capacity augmentation, and Sprint's EV-DO (Evolution, Data Optimized) wireless high-speed data network deployment. The contracts also include future 1xEV technology upgrade options. This investment helps insure Sprint continues its wireless industry leadership by expanding and strengthening its network coverage, deploying new services and supporting continued customer growth.

The company announced last June its plan to provide next-generation EV-DO wireless service at peak data rates of up to 2.4 Mbps to major U.S. metro areas during 2005. Sprint expects to spend about US$1 billion of the US$3 billion investment total to upgrade its network to EV-DO technology which will accelerate mobile device data speeds up to 10 times faster than on today's network.

Markets involved in the service launch will be announced in the near future. Sprint expects the migration to EV-DO will be relatively easy because of its nationwide wireless network design. Site upgrades involve incorporating a new channel card and additional RF carrier, without the need to replace the existing infrastructure.