RealTime IT News

Verizon Eyes Expansion

Moving to boost network capacity and coverage, Verizon Wireless has inked a three-year agreement to buy telecom equipment from Motorola .

The country's largest mobile carrier will install Motorola's CDMA2000 1X radio base stations, Internet Protocol call processing platforms and advanced messaging systems in markets in California, Colorado, Minnesota, North Carolina and South Carolina.

It's the second move by Verizon Wireless to improve its voice and data network in as many weeks. Earlier it would pay $930 million for NextWave Telecom's New York-area spectrum license.

Motorola has supplied network equipment to Verizon Wireless since the carrier formed in 2000. Motorola spokeswoman Kathi Haas said the company also sold infrastructure to Verizon Wireless' predecessors -- Bell Atlantic and AirTouch -- for several years before their merger.

Today's news comes amid growing competition for Verizon Wireless, a joint venture between Verizon Communications and Vodafone .

For example, Cingular's acquisition of AT&T Wireless is on track to be close in the fourth quarter, making the operator a much larger threat.

Meanwhile, the Federal Communications Commission (FCC) recently approved a controversial spectrum swap deal for Nextel that Verizon Wireless and some consumer advocates vehemently opposed.

Some members of Congress also want the agreement reviewed by the General Accounting Office (GAO) to see if Nextel was paying enough for the valuable swath of airwaves.

"Obviously we're interested in what happens with the GAO," Jeffrey Nelson, a Verizon spokesman, told internetnews.com. "Beyond that, we're going to wait to see what the FCC's order says before we assess what our options are going forward."

The companies did not disclose financial terms of the deal.