Omnipoint, Voicestream Buy Washington GSM System from Sprint PCS

Sprint (Kansas City, MO) has sold its GSM communications wireless network infrastructure (formerly known as Sprint Spectrum) in the Washington/Baltimore area to Omnipoint Corp. (Cedar Knolls, NJ) and VoiceStream Wireless (Bellevue, WA). Omnipoint has acquired Sprint's GSM network infrastructure, including base stations, antennas, switches, and other network equipment. However, the transaction does not include Sprint PCS' CDMA wireless network, PCS spectrum licenses, customer accounts, or employees in the area. Terms of the transaction are not being disclosed.

A Sprint affiliate launched the GSM system in Washington/Baltimore in November 1995. Sprint subsequently selected CDMA as the technology standard for its wireless network and has been operating two separate wireless networks—the newer CDMA Sprint PCS network and the GSM Sprint Spectrum network—in the Washington/Baltimore area since 1997.

"We've recently completed the upgrade of the majority of our Washington/Baltimore GSM customers to our more advanced nationwide CDMA network," said Andrew Sukawaty, Sprint PCS president. "This transaction allows us to focus our employees' efforts on our CDMA customers and operations in Washington/Baltimore." Sprint PCS began the upgrade of its GSM customers to its newer CDMA network last summer.

By taking over these networks, Omnipoint and VoiceStream consolidate GSM coverage in the Northeast corridor, providing contiguous service from Boston to Washington, DC. According to Douglas Smith, Omnipoint chairman and CEO, the companies will enhance both the availability and the quality of GSM service in the Washington/Baltimore market.

Edited by Ellen Jensen