"It's been awhile since we've seen a $300 million deal," a Nortel representative said. "It's a pretty significant deal in today's market."
T-Mobile has three main suppliers of network equipment: Nortel, Ericsson and Nokia. Before the deal, Nortel supplied T-Mobile with about 40 percent of the hardware in its network. A combination of Nokia and Ericsson gear made up the balance.
As a result of the partnership, Nortel is gaining more ground. A source familiar with the deal said some of Nortel's base stations will displace T-Mobile's equipment in some second-tier markets.