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To: engineer who wrote (1126)	8/26/1999 4:41:00 PM
From: bananawind	Read Replies (2) \| Respond to of 13582

Brazil - Nortel cdma contract from Canbra (Q investee) VeloCom Consortium Awards Nortel Networks $500 Million Contract to Build Brazil's First Alternative Telecommunications Network DENVER--(BUSINESS WIRE)--Aug. 26, 1999--VeloCom Inc. (formerly WLL International Inc.), a rapidly growing international telecommunications company, announced today that its consortium in Brazil, Canbra Telefonica, has awarded a five-year contract worth an estimated $500 million to Nortel Networks. Nortel will design and build a turnkey wireless network for Canbra to deliver telephone and data services to customers in Rio de Janeiro and 15 other states in northern Brazil. "One of the goals of the privatization and deregulation of Brazil's telecommunications industry last year was to bring world-class services and features to the Brazilian people," said David Leonard, president of VeloCom. "Nortel's cutting-edge, fixed wireless and Code Division Multiple Access (CDMA) technology will enable us to offer customers an unparalleled level of quality in our telephone systems. "Brazil offers one of the most lucrative telecommunication opportunities in the world," Leonard continued. "Focused leadership and strategic partnerships are required to effectively capitalize on this market. VeloCom is now positioned to completely modernize the Brazilian telecom industry." Nortel Networks will develop a complete network solution for Canbra, including Nortel Networks Proximity II and cdmaOne fixed wireless access equipment, digital switching systems, Optical Internet solutions, PBX and call center equipment. Deployment will begin immediately in Rio de Janeiro, Minas Gerais and Bahia, followed by deployment in the other 13 states in Canbra's region. Commercial service is scheduled to start in the fourth quarter of 1999. Denver-based VeloCom is quickly becoming a dominant provider of competitive voice, data and Internet services in key markets in Latin America. The company's strategy is to build competitive local exchange carriers (CLECs), using primarily wireless technology in newly liberalized and under-served Latin American telecommunications markets. Together with its partners, Bell Canada International and Qualcomm Inc., VeloCom formed two telecommunications companies in Brazil: Canbra and Megatel. They have secured "mirror" licenses in Brazil under which they can provide switched fixed telephony service to approximately 75 percent of Brazil's 160 million inhabitants, including Latin America's second and fourth largest cities, Sao Paulo and Rio de Janeiro. About VeloCom Inc. VeloCom, based in Denver, was formed in June 1998 under the name WLL International Inc. with the goal of becoming the largest competitive telecommunications provider in Latin America. Fred Vierra, chairman; David Leonard, president; and Nick Kauser, chief technical officer, lead VeloCom. Vierra previously served as chief executive officer of Tele-Communications International, Inc. Leonard was formerly president and chief executive officer of UIH Latin America. Kauser served as executive vice president and chief technical officer at AT&T Wireless Services Inc. Privately held, the current equity sponsors of VeloCom include Denver's Telecom Partners and Centennial Funds, as well as California-based Crescendo Ventures. CONTACT: VeloCom Barry Rowan, 303/874-1142 rowen@velocom.com or Metzger Associates Joseph Pate, 303/786-7000 joe@metzger.com