The deal is valued by Nortel at $135-million, and allows Cricket to earn credits that can be applied to future products and services.
Nortel claims its Rev A technology lets users receive data at burst speeds up to 3.1 Mbps and send data at up to 1.8 Mbps with significantly lower delay.
Now this is curious: Not a day later, Huawei said it has reached a deal to sell CDMA2000 1X, EV-DO Rev A equipment to Cricket as well.
It looks like Nortel and Huawei are selling the same kind equipment to Cricket, which appeared to start buying Huawei equipment earlier this year. This relationship started with Cricket using Huawei equipment in three markets - Spokane, Boise and Reno - and it will now be expanded.
Both Nortel and Huawei will provide equipment that Cricket will use within its recently-acquired advanced wireless services spectrum.
Maybe Nortel and Huawei will have their equipment used in different markets, or maybe they’re complementary, or maybe Cricket figures using two suppliers gives it the ability to compare and contrast - as well as negotiate better deals. For example, Nortel’s announcement includes the fact Cricket will earn credits that can be applied to “future products and services”.
Another potential clue about what could be happening - and I’m just speculating - is this paragraph from Monday’s press release:
Since choosing Nortel as a wireless infrastructure supplier in 2000, Cricket has deployed Nortel infrastructure in markets covering more than 26 million potential subscribers. This includes recent market expansions in Burlington and Raleigh-Durham, NC; Charleston, SC; and Rochester, NY. The two companies expect to continue their strong relationship for many years to come.
Read into that what you will.