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To: Ruffian who wrote (7893)10/25/2000 5:11:34 PM
From: Puck  Read Replies (1) | Respond to of 34857
 
So NT dreams of being a first tier infrastructure provider?



To: Ruffian who wrote (7893)10/25/2000 6:00:26 PM
From: Puck  Respond to of 34857
 
Nortel in all likelihood won because it offered vendor financing, something Ericsson and Nokia are not willing to do.



To: Ruffian who wrote (7893)10/25/2000 6:06:43 PM
From: Puck  Respond to of 34857
 
Ooops! You forgot to mention this: "The Xfera contract reinforces Ericsson's leading position in 3G. Ericsson has to date been named a supplier in 17 out of 22 UMTS agreements in the world."

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Wednesday October 25, 3:05 pm Eastern Time

Press Release

Ericsson to supply UMTS radio network to Xfera in Spain
STOCKHOLM--(BUSINESS WIRE)--October 25, 2000--Ericsson (NASDAQ:ERICY - news) has been selected by Xfera moviles, the new mobile operator awarded one of four Spanish UMTS licenses, to supply the 3G radio access network. The initial contract is valued at more than $250 million.

Under the agreement, Ericsson will in accordance with the operator's rollout plan deploy a turnkey radio access network across approximately half the national territory of Spain, including such urban centers as Barcelona, Bilbao, and Valencia.

Xfera is an independent third-generation mobile operator established in April 2000 following the award a 3G operating license.

``This contract again confirms our customers' belief in Ericsson's 3G solutions and our proven ability to deploy networks,'' stated Ingemar Naeve, President of Ericsson Spain.

The Xfera contract reinforces Ericsson's leading position in 3G. Ericsson has to date been named a supplier in 17 out of 22 UMTS agreements in the world.

Ericsson is the leading communications supplier, combining innovation in mobility and Internet in creating the new era of mobile Internet. Ericsson provides total solutions covering everything from systems and applications to mobile phones and other communications tools. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for customers all over the world.



To: Ruffian who wrote (7893)10/26/2000 10:28:36 AM
From: Puck  Read Replies (3) | Respond to of 34857
 
Orange Picks Alcatel, Nokia and Ericsson for Wireless

By Daniel Tilles

Paris, Oct. 26 (Bloomberg) -- Orange, Europe's second-biggest mobile-phone company, selected Alcatel SA, Nokia Oyj and Ericsson AB to supply equipment for building new wireless networks, with testing of services scheduled to start next year.

Orange, which is owned by France Telecom SA, selected the winners after more than 10 suppliers submitted bids earlier this year. While the value of the agreements was not disclosed, Didier Quillot, general director of France Telecom Mobiles, said the networks would cost ``several billions of euros'' to build.

With phone operators expected to spend some $200 billion for licenses to offer fast Internet access from mobile phones and the accompanying network gear, France Telecom and rivals are forcing equipment makers to share part of the financing cost. They have also established penalties in cases of late delivery of equipment or installation.

``All three suppliers offered very significant financing credits,'' Quillot said during a conference call.

Alcatel shares fell as much 3 percent to 72.15 euros. Nokia, the world's largest maker of mobile phones, fell as much as 3.9 percent to 45.7 euros. Ericsson shares rose as much as 3.6 percent to 129 kronor.

Other Countries

Quillot said all wireless companies in which France Telecom holds stakes benefited from financing and other proposals from the three suppliers.

Last Friday, Ericsson, the world's biggest market of cellular- phone networks, said it won a $1.35 billion order from MobilCom AG, Germany's fourth-biggest mobile operator for Universal Mobile Telecommunications System, or UMTS, equipment. MobilCom is 28.5 percent owned by France Telecom.

Stockholm-based Ericsson will help fund the network, supplying MobilCom with equipment, phones and services worth 2.4 billion euros ($2 billion), said MobilCom Chief Executive Gerhard Franz Schmid.

The German company, which expects to start a UMTS service by mid-2002, will pay Ericsson 1.6 billion euros in 2003, Schmid said. Ericsson faces penalties if it fails to deliver on time, with Schmid warning that MobilCom will not pay for what has been delivered if the work isn't completed as scheduled.

``There are penalties tied to late delivery of equipment and for volume,'' Benoit Eymard, France Telecom Mobiles development and operations director said during today's conference call. He declined to say how steep the penalties may climb.

``From a financial point of view, the risk is greater in the area of penalties for late delivery,'' said Antoine Joly, an analyst with Aurel-Leven who has ``buy'' ratings for France Telecom and Alcatel. ``The operators are putting pressure on the equipment makers for financing, but the equipment makers are in a strong position too because all the operators want their networks at the same time.''

Sarah Compton, a spokeswoman for Alcatel, Europe's second- largest phone-equipment maker, said the company has also been selected by Wind SpA, Italy's third-largest mobile-phone company to supply phones and network equipment. She declined to discuss financing arrangements being offered to France Telecom and its different mobile operations, which include Wind.

Shares in France Telecom rose as much as 2.4 percent to 120.1 after earlier rising as high as 125.5 euros.