Lucent slashes prices to win telecoms
equipment market
September 2, 1998
Brazil - SABI via NewsEdge Corporation : Lucent Technologies announced an
aggressive prices policy to reinforce its= position in the increasingly competitive
Brazilian cellular telephone= equipment & solutions market. Lucent has a 9% share on it,
and aims to= conquer 20% up to year 2000, and runs a plant based at Campinas, Sao
Paulo= state, that enjoys fiscal incentives and is prepared to produce equipment= both
for cellular telephone or WLL systems. Over the last few years the= company invested
US$100mil in Brazil, and is investing US$30mil to expand= its Campinas plant to produce
optical fibers. Lucent has a US$11.3mil= contract with Telesp Celular to supply
technology for Band A services in= the Sao Paulo state countryside, signed before the
privatization of this= company now owned by Portugal Telecom, that eventually will
confirm the= deal. Mr Virgilio Freire, chairman Lucent in Brazil, believes that the= cellular
technology market will be split into TDMA and CDMA technologies,= with a slight
predominance for CDMA until year 2000. Also the executive= does believe that the
telecoms agency Anatel will not open the market for = GSM technology for PCS services
in Band C, and will rather adopt the US= standards for CDMA and TDMA. Lucent is
also marketing locally call centers= terminals for cellular services striking contracts with
BCP= Telecomunicacoes, Tess, and Algar, totaling sales of US$20mil.=20
-0-
Source: Jornal do Comercio Page: a30 Date: August 28, 1998 Country: Brazil Product:
Telecommunications Equipment Company: Lucent Technologies Event: Strategy and
Planning SABI (South American Business Information)
[Copyright 1998, Comtex]
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