Bell Atlantic has guaranteed Nortel Networks a massive chunk of business, signing two agreements together worth up to $US1 billion.
Bell announced on Friday Nortel will supply around 50 per cent of its product and services requirements over the next three to five years.
The second agreement will see Nortel supply Bell with "strategic products" to build into the carrier's core infrastructure to create next generation IP networks.
Nortel Networks reports the agreement completes a competitive bidding process, but did not name the other contenders.
Bell Atlantic's president for Network Services, Paul Lacouture, said: "With these contracts signed, we will move forward with our aggressive plans to expand availability of our high-speed data products and to deploy more high-capacity, capability in our network."
The first agreement to supply digital loop carrier equipment based on Nortel Networks' Universal Edge 9000 platform is estimated at a potential value of $US600 million.
The second agreement is built on Nortel Networks ability to provide its new scalable XA Core processor and the DMS SuperNode Data Manager for AMA processing power, the company reports.