Nokia Inks $500 Million Deal with VoiceStream
By Cindy Christ

Nokia, the world's No. 1 mobile phone maker, and VoiceStream Wireless Corp. signed a $500 million deal to expand the wireless services provider's network to include Internet-ready phones.

Bellevue, Wash.-based VoiceStream is the largest GSM operator in the United States.

GSM, short for Global System for Mobile Communications, is the wireless communications standard used in digital networks in Europe and Asia.

CDMA, or Code Division Multiple Access technology patented by Qualcomm (QCOM), is the digital standard widely used in the U.S.

Under the agreement, Nokia will provide an end-to-end system, including packet-based network equipment, services and Nokia 7190 Internet-ready phones.

"The continued expansion of our GSM network and the delivery of wireless data services are a key part of our long-term business strategy," said Bob Stapleton, president of VoiceStream Wireless Corp., in a statement.

The multi-year agreement is one of the largest ever for Finland's Nokia, which is leading the charge as part of an industry consortium to promote worldwide adoption of the Wireless Application Protocol (WAP).

WAP-enabled phones allow mobile users to easily and securely access information from the Internet or corporate Internet sites.

Shares in Nokia finished down $15.63, or 7 percent, at $206.38 amid a broad technology sell-off. VoiceStream (VSTR) dropped $13.88, or 10.8 percent, to $114.94.