Sprint Unit Signs Deal With Nortel

Sprint’s local phone subsidiary said it has signed a four-year, $1.1-billion supply and services deal with Nortel Networks Corp. to transform its network into a packet-based system, allowing it to move data traffic more efficiently. Nortel’s packet-switching system moves information in blips and, unlike Sprint’s current circuit-switch technology, doesn’t require a continuous circuit for the entire transmission.

Sprint said it will be the first U.S. carrier to “packetize” its entire network--although this contract with Nortel covers only phase one of the roll-out--giving customers the ability to use one phone line for simultaneous phone calls and Internet connections. The new network also will expand the reach of Sprint’s high-speed data services.

The new packet technology will initially cover 3.6 million telephone lines, or less than half of Sprint’s 8.3 million lines, with Nortel shipping equipment this year, with initial deployment by Sprint in 2002.