This impacted Alcatel. Likely the reason for the support levels this
week. I don't see much negative impact from the MOT plant.
ALCATEL AWARDED ITS LARGEST CDMA CONTRACT FOR A NATIONWIDE NETWORK IN MEXICO
Paris, November 13, 1998 -- Alcatel and Pegaso Telecomunicaciones, S.A. de C.V yesterday signed in Mexico a four year US $ 270 million contract to supply a complete network solutions for a nationwide digital wireless CDMA (Code Division Multiple Access)network in Mexico.
The contract was signed by Mr. Alejandro Burillo, Chairman of Pegaso
and Mrs. Anne Lauvergeon, member of Alcatel Executive Committee, in
presence of Mr. Jacques Chirac, President of France and Mr. Ernesto
Zedillo, President of Mexico.
The network buildout is planed to start with PCS (Personal Communication Services) commercial services early 1999 in Mexico City, Monterrey, Guadalajara and Tijuana and to have national coverage throughout Mexico by the year 2000.
Alcatel will supply microwave access, transmission equipment, mobile switches, engineering, construction, customer care and billing system,
as well as training and related deployment services.
This agreement results from the Mexican Government's auctioning of wireless frequency allocation. Pegaso Telecomunicaciones recently
obtained wireless frequency enable it to provide nationwide PCS digital mobile and fixed wireless communication services.
Mr Armand Hazan, President of Alcatel Mexico, said : "Alcatel, which
has a leading position in almost all segments of the Mexican telecom
market, will collaborate closely with Pegaso Telecomunicaciones in the
design and deployment of this important digital network. The rapid
implementation of this network meets the Mexican Authorities desire to
see a high penetration for wireless local loop services".
Pegaso Telecomunicaciones, S.A. de C.V is a new operator which in May 1998 won PCS licences in the 1900 MHz frequency band in a Mexican Government auction. To date, Pegaso has raised US $ 400 million in equity. The company's principal shareholder's are Grupo Pegaso, Grupo Televisa and Leap Wireless.
Alcatel is a world leader in telecommunications systems and equipment, as well as related cables and components activities, Alcatel operates in over 130 countries. Alcatel provides complete solutions and services to operators, service providers, enterprises and consumers, ranging from backbone networks to user terminals.
Background information
Access solutions
The Alcatel microwave radio links that will be delivered for the Pegasus Project is the latest generation of point to point radio (Alcatel 9400 series - Low Capacity range).
Among its main applications are Mobile Cellular Networks. Cellular operators appreciate the fact that they can build up network capacity gradually, according to where and when subscriber traffic increases. Because of the fast, easy installation and flexibility of microwave radio links, mobile operators increasingly favour low and medium capacity links for interconnecting base stations. Furthermore, radio links enable operators to build their networks quickly, so they rapidly begin generating revenue flows from subscribers.
Those advantages explain the choice of microwave access as the Alcatel main technological solution for the building up of Pegaso's PCS network.
Significant quantities will be delivered before the end of this year.
This award reinforces Alcatel radio links solutions success with more than 200,000 transceivers installed in 150 countries.
Mobiles switching solution
Alcatel supplies in the frame of the PEGASO contract its mobile switching product based on the widely-deployed Alcatel 1000 S12 switching solution and incorporating the IS-634 open interface standard. By employing this standard on the interface where the switch
interconnects to the radio component of a wireless infrastructure system, the Alcatel switch is able to operate with any base station subsystem which also incorporates the IS-634 interface. Alcatel expects this initiative to hasten the growth of PCS networks by giving
more flexibility to PCS network operators and increase its opportunities to sell its switching technology.
This product, aimed primarily at the CDMA (Code Division Multiple Access) market, is a direct and tangible response to those network operators who have been asking for the additional flexibility of being able to "mix and match" base station and switching subsystems, which is exactly what the IS-634 interface offers them. As networks grow,
operators who have deployed the Alcatel 1000 S12 mobile switching center (MSC) with this interface will be able to make their decisions about additional radio subsystems strictly on the basis of price and performance. They will no longer have to feel locked in to a specific supplier by a proprietary radio-switch interface, which has been the typical case up to now.
This announcement represents the achievement of another important milestone on Alcatel's roadmap for both its wireless products and business strategy. The flexibility, which the IS-634 interface provides, coupled with the inherent capacity, performance, and
reliability of the Alcatel MSC, will prove of immense value to network operators everywhere.
Alcatel already supplies Qualcomm Incorporated with this system which has enabled the well-known CDMA product innovator to supply versatile cdmaOne (IS-95 CDMA) solutions to PEGASO.
Transmission solutions
For the local networks of the first phase, which has to be completed during 1999, Alcatel will provide these transmission solutions :
-Urban SDH microwave systems (9615UH) which are intended for short haul links for public, private networks and cellular applications
-155 Mbps (STM-1) 1641 SM add dropp multiplexers operating with either electrical or optical interfaces for both short and long haul sections
-2.5 Gbps (STM-16) 1661 SMC compact add drop multiplexers and the relevant network management
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