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To: larry pollock who wrote (3774)2/6/2002 2:17:04 PM
From: larry pollock  Read Replies (1) | Respond to of 3891
 
Siemens Wins Deutsche Telekom Order for UMTS Network (Update2)
By Jennifer Sondag

Berlin, Feb. 6 (Bloomberg) -- Siemens AG said it signed a 10- year contract with Deutsche Telekom AG to supply and install networks for third-generation mobile phone services. This year, Europe's largest phone company plans to spend 140 million euros ($120 million) to prepare network sites.

Siemens will supply T-Mobile International AG, the mobile phone unit of Deutsche Telekom, with network and switching systems in Germany for UMTS, or universal mobile telecommunications system services, Siemens said. Rudi Lamprecht, head of the company's mobile-phone business, said Siemens will begin selling UMTS handsets in the fourth quarter.

T-Mobile expects to have 25 million customers in 2003, of which 10 percent will use UMTS services, Chief Executive Officer Kai-Uwe Ricke said. Deutsche Telekom Chief Executive Officer Ron Sommer said the phone company doesn't need any more UMTS capacity in Germany beyond that currently planned.

``We see two (UMTS) players as successful and we plan on being one of them,'' Sommer told journalists at a briefing in Berlin today. ``What the other four do is their business.''

UMTS Auction

Germany auctioned UMTS licenses worth 50.5 billion euros in 2000 to Deutsche Telekom, Vodafone Group Plc, France Telecom- backed MobilCom AG, MM02, Royal KPN NV and Group 3G, a company owned by Sonera Oyj and Telefonica SA.

Deutsche Telekom said that by the end of this year it will have UMTS networks in 20 German cities, including Berlin. The company plans to add 1,400 antenna sites to the 1,600 sites it had at the end of 2001. In December 2000, the contract with Siemens was valued at about 350 million euros ($303 million).

The two companies signed a letter of intent in December 2000 to cooperate on UMTS networks and phones. They presented their plan at a press conference today attended by Siemens Chief Executive Officer Heinrich von Pierer and Sommer.

Siemens, Germany's largest electronics and engineering company, will also provide networks for T-Mobile units in Austria, the U.K. and the Netherlands, it said. Siemens has been a supplier to T-Mobile since 1992.