To: John Biddle who wrote (32276 ) 2/12/2003 6:49:43 PM From: John Biddle Respond to of 196605 America Movil, Nokia to deploy EDGE in Ecuador and Colombia 02/12/2003 - Source: latintrade.com (BNamericas.com) - Regional mobile holding company America Movil (NYSE: AMX) has chosen Finnish network equipment vendor Nokia (NYSE: NOK) to supply EDGE network infrastructure for its subsidiaries in Colombia and Ecuador, Nokia said Tuesday in a statement. The deployment of the two nationwide networks, for Colombian mobile operator Comcel and Ecuadorian mobile operator Conecel, respectively, will start immediately, Nokia said. The deployment could very well signify that Colombia and Ecuador will become the global testing ground for EDGE technology. There are no operators currently offering EDGE services anywhere in the world, independent consultant Jose Otero told BNamericas, confirming comments to the same extent made to BNamericas by Qualcomm's chairman and founder Irwin Jacobs in December. Otero noted that America Movil first expressed interest in EDGE some two years ago for Mexican subsidiary Telcel, but has yet to offer EDGE services via its recently launched GSM/GPRS network. The deal will allow America Movil to introduce GSM voice and GPRS/EDGE data services to Colombia and Ecuador. The network will be EDGE capable from day one. Otero said deploying EDGE "makes a lot of sense" for America Movil in Colombia and Ecuador. EDGE will give America Movil greater spectrum efficiency on their network, which they will need now that main competitor BellSouth (NYSE: BLS) has deployed CDMA2000 1xRTT networks in both countries. In contrast, America Movil's dominance in Mexico means it is not under pressure to immediately upgrade to EDGE in that country, Otero noted. Telcel controls some three-fourths of the Mexican mobile market. Under the terms of the contract, Nokia will supply its high-capacity, end-to-end GSM/GPRS/EDGE solution for 800MHz mobile service, including core network, radio access and related services. Included in the contract are Nokia UltraSite GSM/EDGE base stations, as well as the Nokia circuit-switched core network, Nokia GPRS packet-core network, and the Nokia NetAct operations support systems (OSS) solution. Nokia said America Movil subscribers can expect the prompt availability of 800MHz phones in several price and performance categories. The company already offers several GSM/GPRS 800/1900 MHz dual-band phones and recently announced the industry''''s first triple-band 800/900/1900 EDGE terminal, the Nokia 6200. However, handset prices, unless heavily subsidized, are likely to be prohibitively expensive for end users, Otero said. This is because there are no EDGE operators buying such handsets, and economies of scale are very important in determining handset prices, he said. Reflecting on the handset pricing problem, Otero emphasized the main reason for deploying EDGE has less to do with the value-added services America Movil could offer over a 2.75G network, than it does with the added spectrum efficiency that such a network provides. In the long-term America Movil will migrate to a third-generation UMTS (WCDMA) network, Otero said. However, UMTS remains on the horizon, given its high deployment costs, and perhaps more significantly, because most Latin American operators do not have enough radiomagnetic spectrum on hand to deploy it. Mexico-based America Movil has over 32 million wireless subscribers across Latin America, including 20 million in Mexico, where Sweden's Ericsson (Nasdaq: ERICY) is helping the company deploy a GSM/GPRS network with MMS capability. Comcel has 2.82 million subscribers, and Conecel has 932,000 subscribers. America Movil is the sister company to Mexico's largest telco Telmex (NYSE: TMX).