Sprint Signs $1.1 Billion Deal with Nortel for Packet Network

RESEARCH TRIANGLE PARK, N.C., Nov. 5 -- Sprint Local Telecommunications Div. (LTD) plans to transform its entire telephone network to a more cost-effective packet voice network using equipment and services from Nortel Networks estimated to be worth approximately $1.1 billion over four years.

"Sprint is leading what will become an important new stage in networking -- the complete transformation of telephone networks with packet technology," said Frank Plastina, president of Metro Networks, Nortel Networks. "We believe this will position Sprint to drive substantially reduced operational and capital costs while preserving their existing investments."

"Packetization not only makes the network simpler and more cost-effective, it also opens the door to new services that can be run across existing telephone lines," said Mike Fuller, president, Sprint Local Telecommunications Div. "With deployment of this leading-edge technology, we will address the expanding telecommunications needs of our customers."