Brazil's Oi Signs 3G Deals with Nokia Siemens, Huawei
Published on: 16th January 2008
SAO PAULO -(Dow Jones)- Brazilian telecommunications firm Tele Norte Leste Participacoes, or Oi, signed contracts with Nokia Siemens Networks and China's Huawei Technology for the installation of third generation wireless infrastructure across this continental-sized country, a company spokeswoman confirmed Wednesday.
The deals to install networks across 18 states are worth 1 billion Brazilian reals ($568 million), according to the local business daily Valor Economico. The company did not confirm the figure.
Over the next year, Oi plans to install 3G services in 53 municipal areas, as well as establish a wireless and 3G network in Sao Paulo.
Financing for the networks was agreed directly with the suppliers, said the Valor report.
Oi recently won band frequencies that will allow it to enter Sao Paulo state, which is Brazil's largest market.
The nucleus of the network will be supplied by Nokia Siemens. The firm will supply half of the necessary equipment as well. Huawei will come in with the remainder.
The deals were actually closed in December, soon after the government auction of third generation bandwidth.
Oi wants to implant its network quickly, with much of the work done in 2008.
Oi shares were virtually flat at BRL40.19 at the start of trade on the Sao Paulo Stock Exchange, or Bovespa, while the benchmark Ibovespa index was 1.5% lower.
-By Alastair Stewart; Dow Jones Newswires; 5511 3145-1479; firstname.lastname@example.org
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