Nokia or Ericsson declined to disclose the financial value of the contracts, and it is unclear whether further equipment manufacturers have been selected.
However, T-Mobile USA, the U.S. mobile phone arm of Deutsche Telekom, said in October that it expects to spend about EUR2.1 billion, or $2.66 billion, over the next two to three years to upgrade to its next-generation network.
T-Mobile USA, the smallest of the four major USA mobile network operators, plans to make the third-generation, or 3G, network commercially available in mid-2007.
Both Nokia and Ericsson will provide with WCDMA, a type of 3G telephone network, that will allow the German mobile phone operator to provide consumers faster mobile communications, and improved video, music and television services via their phone.
Finnish mobile phone giant Nokia said it will provide small, low-power consuming WCDMA base stations, or 3G transmitters, to T-Mobile USA in the South, Central and Western states of the U.S., excluding California.
Swedish equipment manufacturer Ericsson will act as the prime radio provider for T-Mobile's WCDMA 3G services in New York City, which are expected to go live in 2007. It will also provide 3G technology in other regions.
T-Mobile USA said last month that it is looking to capture 18% to 20% of the U.S. market, where there is still significant growth opportunities in providing mobile services. It aims to expand its current U.S. customer base of approximately 23 million to between 35 and 40 million by 2015. This will help offset pressures in T-Mobile's traditional European market where it is facing overcrowding and strong price competition.
-By Daniel Thomas, Dow Jones Newswires; 44-20-7842-9264; dan.thomas@dowjones.com
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