Smartcom Increases Its Customer Base By 80% During Its First Three Months Under Endesa Management
NEW YORK--(BUSINESS WIRE)--Sept. 13, 2000--
- The company, acquired by Endesa last June, currently has over 180,000 customers and expects this figure to be above 250,000 at year-end.
- During the last three months Smartcom has committed investments for over US$ 145 million to enhance its distribution network in Chile.
Smartcom, the Chilean cellular phone operator acquired by Endesa Telecomunicaciones S.A, an affiliate of Endesa, SA (NYSE:ELE) on May 31, 2000, has experienced an 80% increase in its customer base over the last three months having reached 180,000 at the end of August (100,000 at the end of May).
During these first 100 days after its takeover by Endesa, the company has committed to date an investment figure of over US$ 145 million for a new network which includes a commuting central in Santiago de Chile and the construction of 400 radio links all over the country. Besides, the company has already installed new computerised management, customer and billing systems and has carried out marketing campaigns, which include tariff plans comparable to the most advanced ones in Europe.
The above actions are part of Smartcom's new business plan, established after its takeover, which contemplates as its targets the development of a strong distribution network to guarantee the availability of Smartcom's handsets all over the country and which may highlight the benefits of CDMA technology (Code Division Multiple Access), which is capable of offering Internet services similar to those offered by UMTS networks. The systems brought by this new plan contribute to a swift customer attention and the development of innovative tariff plans thereby enlarging the array of services in order to capitalise on the growth of the main segments (pre-paid and internet).
Outlook
Smartcom's excellent customer acceptance in the Chilean cellular phone market, as well as the new products and services it will soon offer - including third generation cellular - lead the company to expect growth prospects, such as an increase of the customer base to over 250,000 at year end.
The acquisition of SMARTCOM was ENDESA's first step in the development of its strategy focused on growth opportunities in telecommunications in Latin America in the fields of cellular telephony and wireless local loop (WLL), including cellular-based interactive and internet services.
ENDESA intends to turn SMARTCOM into a reference for the last generation Latin American telecommunications operators.
ENDESA and the telecommunications markets
ENDESA is one of the pioneering electric utilities in the telecommunication services through its participation as core shareholder in AUNA, Spain's alternative global telecoms operator in Spain. AUNA has a customer base of 5 million in Spain and expects to reach a market share above 15% and over 10 million customers.
CONTACT:
Investor Relations
Jacinto Pariente, 212/750-7200
endesa.es
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