Nortel wins five-year contract from U.S. Cellular

TORONTO, March 25 (Reuters) - Wireless carrier U.S. Cellular has awarded Nortel Networks Corp (NT.TO)NT.N a five-year contract to beef up the telecom company's network using Nortel's CDMA technology.

The deal will allow U.S. Cellular, the sixth-largest wireless company in the United States, to keep adding subscribers and provide services such as web browsing, e-mail, instant messaging and gaming. U.S. Cellular has 6 million subscribers in 26 states.

Financial terms weren't disclosed.

U.S. Cellular will buy Nortel's CDMA switching, base stations and software. The pact also includes emergency technical support, performance monitoring and other services.

The agreement comes as shares of Toronto-based Nortel continue to slump and analysts caution that the company must remain relevant to wireless carriers if it is to succeed.

Nortel is the biggest maker of telephone equipment in North America. Its shares were up 19 Canadian cents at C$6.86 on the Toronto Stock Exchange.

($1=$1.02 Canadian) (Reporting by Wojtek Dabrowski; Editing by Bernadette Baum)