To: DMaA who wrote (3419 ) 6/24/1999 4:00:00 PM From: elmatador Read Replies (1) | Respond to of 5390
BRAZIL: CANBRA'S CONTRACTS, INVESTMENTS, PLANS The company Canbra (the telephony mirror company which will operate in the same area of 16 Brazilian states currently operated by the holding Telemar) closed contracts with total value of US$ 400mn with the companies Nortel (two thirds of the total value) and Qualcomm/Ericsson (one third of the total value). Nortel will supply equipment like telephony centres, 3.4 GHz TDMA radiobase stations, WLL (Wireless Local Loop) technology for fixed and cellular telephony. Qualcomm will supply 1.9 GHz CDMA stations, WLL technology specially for cellular telephony. Nortel and Qualcomm were chosen as preferential partners of Canbra since both companies have share participation in Canbra (Nortel is associated to Bell Canada, owner of 34.5% of Canbra, and Qualcomm owns 17%). The contracts of US$ 400mn are part of the yearly investments of US$ 700mn which Canbra plans to make in 1999, 2000 and 2001 in order to reach 29 cities in 1999 (1mn users), 51 cities in 2000 and 106 cities in 2001. Most installations of Canbra will use WLL technology, with optical fibres networks being also used for clients with need for high speed data transmission. Canbra will invest US$ 40mn to acquire computing equipment. Canbra will offer new services like the pre-paid fixed telephones and the PABX Centrex (extension centres which can be used through monthly payments). Canbra expects to increase its personnel from 140 employees to 600 employees until the end of 1999. The consultancy company Ana Couto Design was contracted by Canbra to create the new image of Canbra, including its logo, colours and name (which is expected to be used also for Megatel). Megatel (the mirror company which operates in the area of the company Telefonica, the state of Sao Paulo) is controlled by the same consortium of Canbra and is expected to acquire equipment also from Nortel and Qualcomm, being expected to invest US$ 4.2bn. Canbra and Megatel will also centralise their purchases in order to improve their bargaining power. /ESMERK/PORTUGUESE/EK.WSX