Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: Caxton Rhodes who wrote (1377)	9/9/1999 11:12:00 PM
From: 2brasil	Read Replies (1) \| Respond to of 13582

wonder if this will be cdma ? NT & Ericsson competing in Mexico---- Mexico's Unefon may award network contract soon By Cyntia Barrera Diaz MEXICO CITY, Sept 9 (Reuters) - Mexico's Unefon, a fledgling wireless telephone carrier half owned by TV Azteca (NYSE:TZA - news) , the country's No. 2 broadcaster, may pick its principal technology provider as early as this month, enabling it to start building its nationwide network. The two finalists for the deal, which could be worth up to $700 million, are Canada's Nortel Networks Corp. (Toronto:NT.TO - news) and Sweden's Ericsson , sources close to the negotiations told Reuters on Thursday. ''(Unefon) could sign the contract in two weeks or so,'' one source close to Unefon told Reuters, speaking on condition of anonymity. Company officials were not available for comment. Unefon, which started bidding for local frequencies in 1997, has been looking for a technology partner to develop a wireless network for carrying telephone, television, Internet and other digital services direct to Mexican homes. It aims to install two million units in five years. Unefon is targeting low-income Mexicans, many of whom do not have phone lines in their homes because of the high cost and long wait for wired installation in Mexico. Competition in the local telephone market began this year when Telefonos de Mexico (Telmex) (NYSE:TMX - news) lost its monopoly status, as stipulated under its 1991 privatization. Telmex lost exclusive rights to the long-distance market in January 1997. Lucent Technologies Inc. (NYSE:LU - news), considered the world's largest telecommunications equipment maker, earlier abandoned the race to become Unefon's supplier, leaving the competition to Nortel and Ericsson. ''On Aug. 25, we withdrew our technology and economic proposals for Unefon since both parties were not able to reach an agreement over the terms of the contract,'' a Lucent source told Reuters on Thursday. Lucent installed Mexico's Grupo Iusacell CDMA network, a digital services technology, and is currently developing a fiber optic infrastructure for upstart Maxcom. Iusacell, 40.2 percent owned by U.S.-based Bell Atlantic Corp. (NYSE:BEL - news), is the country's second cellular phone company after Telmex's Telcel. Maxcom counts U.S.-based CT Communications (Nasdaq:CTCI - news) among its partners. ''We were recently invited again to participate in Unefon's plans,'' Nortel's director of marketing in Mexico, Ernesto Sarenana, told Reuters. ''We are currently working with them, making proposals, negotiating ... but they (Unefon) haven't still chosen a provider,'' he said. In February, Nortel signed an agreement to provide technology to Axtel, another Mexican wireless phone company building a network. The working relationship between Nortel and Axtel has raised doubt among industry analysts that the Canadian company can reach a deal with Unefon. ''It seems Axtel has an exclusivity deal with Nortel although Unefon and Axtel use different frequencies,'' one analyst in New York said. Nortel's Sarenana declined to comment on whether there's an exclusivity clause with Axtel but said that Nortel assigns an independent working team for each and every one of its customers. Axtel is 27 percent-owned by Bell Canada International (Toronto:BI.TO - news) and 22 percent-owned by U.S.-based WorldTel Ltd. Officials from Sweden's Ericsson could not be reached for immediate comment. Early this year, Ericsson said was in talks with Unefon for the deployment of a GSM network, a format widely used in the United States and Europe. More Quotes and News: Bell Atlantic Corp (NYSE:BEL - news) Bell Canada International Inc (Toronto:BI.TO - news) CT Communications Inc (Nasdaq:CTCI - news) Lucent Technologies Inc (NYSE:LU - news) Nortel Networks Corp (Toronto:NT.TO - news) Telefonos de Mexico SA de CV (NYSE:TMX - news) Television Azteca SA de CV (NYSE:TZA - news) Related News Categories: Canadian Market News, US Market News Help Copyright © 1999 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. See our Important Disclaimers and Legal Information. Questions or Comments?