Nortel and Verizon Wireless have signed an expected five-year, US$2 billion agreement for Nortel equipment and services that will contribute to improvements and expansion of Verizon Wireless’ network.

The planned Verizon Wireless network expansion comes as business and consumer adoption of services that utilize broadband networks – such as the company’s V CAST video and music services and BroadbandAccess high-speed Internet and e-mail offering – are resonating in the marketplace.

“The popularity of Internet services like user-generated videos, online gaming, music and video is driving an explosion in bandwidth demand,” said Richard Lowe, president, Mobility and Converged Core Networks, Nortel. “Consumers expect more from their mobile devices than voice communication and text-messaging. Nortel is making it simple for Verizon Wireless to expand its network to meet this demand and to competitively drive new services to market that their customers will enjoy.”

“This expansion underscores our focus on investing in innovative technology and leveraging long-term, strategic relationships with leaders like Nortel to continually enhance our subscribers’ mobile communication experience,” said Ed Salas, network planning vice president, Verizon Wireless. “This means true mobility for our customers, allowing them to take their PC experience with them wherever they go and enjoy things like V CAST Music, V CAST video, great mobile games and high-speed file transfers on the nation’s best wireless network.”

Verizon Wireless plans to deploy additional CDMA2000 radio base stations, switching, IP platforms, optical networking solutions and related equipment with the help of professional services from Nortel. In addition, this agreement builds on the contract announced in July 2006, whereby Nortel was selected to supply Verizon Wireless with CDMA 1xEV-DO Revision A technology. The ability for CDMA networks to provide significant performance enhancements through simple upgrades is a key advantage of the underlying technology.