Brazil Sells Two More Licenses
RDSL
18 January 1999
The United Kingdom's National Grid, electricity
transmission system operator, and Qualcomm (San
Diego, California) lead groups that have been
awarded licenses to operate parallel phone
networks
to compete with privatised phone companies.
National Grid has a 50% stake in a consortium
including U.S. carrier Sprint (25%) and France
Telecom (25%). The group entered the only bid for
the concession, at Real 55 million, or 38% higher
than the concession's reference price. Qualcomm
led
a consortium, made up of local investors and Bell
Canada International, that entered the only bid
covering Rio de Janeiro, Brazil, at the reference
price minimum of Real 60 million. The two groups
are expected to invest US$1 billion per year for
three years, according to officials. EXECUTIVES SAID THIS FIGURE IS TOO HIGH. Brazil is expected to see its number of fixed lines double by 2005, vs 15.4 mil
in 1997.
Qualcomm must be desperate to sell their gear, isn't it?
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