Bill and thread,
Lucent pulled another BIG DEAL:
_____
Monday May 18, 11:20 am Eastern Time
Lucent wins $750 mln phone contract in Mexico
MEXICO CITY, May 18 (Reuters) - Mexico's Sistemas Profesionales de Comunicacion (SPC) said on Monday it had awarded a $750 million contract to Lucent Technologies Inc. (LU - news) to build a fixed and mobile telephone network in Mexico.
''This Friday we will sign a letter of intent establishing Lucent as our technological provider,'' the firm's Chief Executive Officer Javier Sarro told Reuters.
SPC, owned by Mexican billionaire Ricardo Salinas Pliego, said last week it would invest more than $1 billion over the next five years to provide a local telephone service within Mexico, in direct competition with the coutry's biggest provider, Telefonos de Mexico SA (TMXl.MX).
The firm said it planned to focus primarily on Mexico's middle to lower classes, which make up the vast majority of the population.
Lucent beat rivals Northern Telecom Ltd. (NTL.TO - news), Nokia Oy(NOKSa.HE) and Telefon AB L.M. Ericsson (LMEb.ST) to the infrastructure building contract.
SPC lawyers will complete the contract agreement within the next eight weeks, Sarro said in the telephone interview.
In an auction on May 8, SPC won a band of 30 megahertz to provide a national wireless mobile network, and two bands of 25 megahertz each to provide a fixed wireless telephone service.
SPC will pay 2.621 billion pesos for the three bands. To meet these costs the firm plans to issue eight to 10-year bonds for up to $275 million and will receive another $160 million in private capital to support the investment plan.
''Lucent has to provide us with a national, wireless telephone network, and 70 to 80 percent of the investment (will be made) this year,'' Sarro said.
Lucent Technologies will install multiple access technology by code division -- a system that can support heavy telephone traffic and provides high quality sound.
''The team I am forming will work along with Lucent's to operate the network and in two years' time they will transfer the technology to us,'' Sarro added.
Initial service tests will take place at the end of this year in Mexico City, and the cities of Acapulco and Toluca, and the network will not be made available to consumers until it is fully complete, he said.
The first installations will be made in Mexico City, Guadalajara and Monterrey and will probably be commercialised at the end of the year.
SPC's principal shareholder Salinas Pliego is also president of Mexico's TV Azteca SA (TZA.MX), commercial chain Grupo Elektra SA de CV (EKT.MX) and beeper service Biper SA(BIPb.MX).
Ibexx |
