Unefon, Nortel Networks Sign Estimated US$480 Millon
Deal to Build Nationwide Wireless Network in Mexico
High performance network to provide wireless service to
over 1.5 million people
MEXICO CITY, Oct. 7 /PRNewswire/ - Nortel Networks (NYSE/TSE: NT) has signed an
agreement with Sistemas Profesionales de Comunicacion. S.A. de C.V., a subsidiary
of Unefon, to build a high performance wireless network in Mexico. Service will begin in
December 1999, and the network will eventually provide state-of-the art telephone
service to over 1.5 million people throughout Mexico. This continues Nortel Networks'
strong momentum in the wireless market and the Caribbean and Latin American region
this year.
The agreement with Unefon is worth an estimated US$ 480 million over five years, and
furthers Nortel Networks' leadership in supplying turnkey solutions to new service
providers globally. Nortel Networks will supply Unefon with cdmaOne (IS-95 CDMA)
equipment and services, including a 100% trunkless prepaid system. Nortel Networks
will also be responsible for the planning, construction, and deployment of the wireless
network within a highly complex environment, including both dense urban and low
density areas. Unefon will deploy the CDMA Metro Cell, which provides unparalleled
modularity, and positions wireless operators to easily and smoothly deliver third
generation (3G) services. Nortel Networks has also agreed to provide approximately
US$600 million of associated vendor financing to Unefon.
``We are pleased to partner with Nortel Networks, a leader in wireless technologies.
We chose Nortel Networks because of their extensive global experience in rapidly
deploying scalable and integrated networks, and their proven cutting edge technology.
In addition, they have a strong commitment to the Mexican market,' explained Moises
Saba, Chairman and executive president, Unefon.
``Unefon has developed a creative and ambitious business plan to bring affordable
wireless services to millions of people in Mexico,' said Gary Donahee, executive vice
president and president, Service Provider Solutions, Nortel Networks. ``We look
forward to working with Unefon to develop the voice, data and Internet infrastructure for
the new millenium.'
Unefon, through its subsidiary Sistemas Profesionales de Comunicacion, S.A. de
C.V., was awarded licenses to provide nationwide PCS services during the auction of
radio spectrum by Mexico's Ministry of Communications and Transport (SCT) that took
place in 1998.
As the fastest growing provider of CDMA wireless solutions, Nortel Networks delivers
the exceptional voice and data solutions needed today, including the highest capacity
and largest coverage range available. The Nortel Networks CDMA portfolio offers the
reliability, scalability, and flexibility for cost-effective deployments in urban, suburban,
rural, in building and other environments.
Unefon, Mexico's largest radio spectrum holder with capability to develop various
projects in wireless digital voice, data and image transmission, is expected to begin
operations by the end of 1999. The company plans to provide communication,
information and entertainment services; during its first stage it will offer wireless local
phone service. Unefon plans to establish immediate market presence due to its
distribution agreement with Elektra (NYSE: EKT, BMV: ELEKTRA), Mexico's largest
specialty retailer, and its advertising agreements with TV Azteca (NYSE: TZA, BMV:
TVAZTCA), one of two private television broadcasters in Mexico.
Nortel Networks delivers value to customers around the world through Unified Networks
solutions, spanning mission-critical telephony and IP-optimized networks. Customers
include public and private enterprises and institutions; Internet service providers; local,
long-distance, cellular and PCS communications companies, cable television carriers,
and utilities.
Nortel Networks' common shares are listed on the New York, Toronto, Montreal and
London stock exchanges. Nortel Networks had 1998 revenues of US$17.6 billion and
has approximately 70,000 employees worldwide.
SOURCE Nortel Networks Corporation |
