Cingular: GSM/EDGE upgrade to cost less than $3 billion

Nokia, Siemens and Ericsson each announced equipment contracts with Cingular Wireless’ network upgrade to GSM/EDGE that add up to more than $3.5 billion worth of new equipment. However, Cingular maintains that the upgrade will not cost more than $2.8 billion.

Cingular estimates the purchases under the GSM/EDGE contracts may total in excess of $1 billion each for Ericsson and Nokia, while the contract with Siemens is estimated in excess of $500 million.

“This is in line with Cingular’s expectation that a total of approximately $2.6 to $2.8 billion will be spent on the GSM/EDGE upgrade of its network over the next two and a half years,” the carrier said in a statement.

Nokia announced it will sell Cingular more than $1 billion in high-speed wireless phone network equipment, and Ericsson said it expected Cingular to buy about $2 billion in high-speed cell phone equipment from it in the next three years. Siemens said Cingular would buy about $500 million in gear, including cell phones.

Despite the discrepancy in cost, which the carrier would not comment about, Cingular confirmed it has contracts with Ericsson, Nokia and Siemens for the GSM/EDGE overlay of its network. The three vendors are expected to provide radio equipment for Cingular’s base stations and cell sites, while Nokia and Ericsson also will provide core switching equipment.

The deals between Cingular, Nokia, Siemens and Ericsson had been expected since Oct. 30, when Cingular announced that it would spend $3 billion to rebuild its telephone network. Cingular had named Nokia, Siemens and Ericsson as its primary suppliers of the equipment.

The carrier hopes to finish building the network by 2004.