Brazil Update> bject: 12/17/98 Brazilian Wireless Update Date: Thu, 17 Dec 1998 14:48:39 -0500 (EST) From: WirelessNOW_Update@commnow.com To: columns-list@mclean1.his.com
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======================================================================== THE WIRELESS INDUSTRY'S PREMIERE SOURCE OF ELECTRONIC NEWS AND INFO <http://www.commnow.com/protectwn/subshomepage.html> ======================================================================== The Brazilian Wireless Update is provided monthly by Brazil Telematics Newsletter. This month, Anatel announced that PCS studies in Brazil will start in 1999. Nortel announced a US$130 million contract with Telemig to provide cellular equipment. Qualcomm is launching telephone manufacturing in Brazil. In satellite services, IBM announced it will outsource satellite operations in Brazil. On the WLL front, Anatel said final rules should be announced by the end of 1998. In related business, RBS announced that it will sell its stake in BCP cellular in Sao Paulo. Lastly, we are offering the binder material from last October's "Brazil Telecom Business Opportunities Year 2000" Executive Seminar in San Francisco when you purchase a subscription to Brazil Telematics News. WirelessNOW subscribers receive a special package price through Dec. 31, 1998. ======================================================================== Brazilian Wireless Update
GUERREIRO SAYS PCS STUDIES TO START IN EARLY 1999.
Anatel will start drafting the bidding rules for PCS licenses early in 1999, said Anatel's General Director Renato Guerreiro during a presentation in December. The auction will be completed by the end of next year. Anatel hasn't decided whether the regions will be the same as those for cellular telephony, he explained, but it's certain that Region 8 won't have PCS until 2002 because the B-band contract for the region allows more time for the existing carrier to recover initial investments.
MIRROR LICENSE BID SUBMITTED BY THREE CONSORTIA
Anatel (FCC equivalent agency of Brazi) announced during the second week of December that three consortia submitted technical and price proposals for the bids for licenses to compete with the four privatized fixed-line telecommunications companies. The sealed proposals for the mirror licenses will be opened as scheduled at an auction on the Rio de Janeiro stock exchange on January 15, 1999.
The consortia participating are: Bonari Holding consists of U.S. operator Sprint Corp. (USA), France Telecom (France) and U.K. power company National Grid Group PLC; Canbra Telefonica consortium consists of Bell Canada International Inc. (Canada) with 34%, Qualcomm Inc. (USA) with 16%, WLL International (USA) with 34%, and Brazilian group Vicunha and Argentinean Group Lieberman, which together hold 15%; and Fixel, formed by the Brazilian cellular service operator Tele Centro-Oeste Celular and telecommunications equipment manufacturer Splice do Brasil.
One of the consortia, called Bonary Holding, will bid for the license to compete with long-distance and international operator Embratel (now owned by MCI). The other two consortia will bid for Tele Norte-Leste which covers the North, Northeast and Mideast of the country.
NORTEL SIGNS NEW US$130 MILLION CELLULAR CONTRACT WITH TELEMIG
During the first week of December Nortel signed a contract for the supply of cellular systems for the A-Band Telemig Cellular Company (which covers the Minas Gerais State region). The supply contract, the first after the privatization last July, totaled US$130.5 million and will be deployed over the next three years. Telemig Celular's demand will be met according to its needs, which was why the contract did not define the amount of equipment to be supplied. Nortel was responsible for the sale of the infrastructure to the operator to assist 200,000 subscribers, in the period of pre-privatization.
IBM OUTSOURCING SATELLITE OPERATIONS IN BRAZIL
By the end of the month IBM will choose the company that will be responsible for the operation and maintenance of its satellite data communications networks in Brazil. Competing for the service are Itautec, Victori, Embratel and Comsat. The winner will operate the networks of Fiat, Lojas Americanas, Volkswagen, Antarctica, Nestlé, Natura and Banco Meridional. However, the transfer of assets is not included in the agreement. The clients will continue to be IBM's. IBM's new strategy is to focus more on IBM hardware and software solutions, and in the case of telecom network requirements, the activity will be outsourced.
WLL RULES SHOULD BE ANNOUNCED BY THE END OF 1998
Anatel announced that the rules of the radio bands for wireless local loop services should be ready before the end of the year. But Anatel said that these radio bands will only be granted to Telco license holders after the bidding for the "mirror" companies, so as not to expand the advantage of the license holders in relation to the new companies, according to technicians at Anatel. This news is not good for suppliers and telco operators, which are waiting for the band frequencies to be freed before signing the first contracts.
Anatel also wants to regulate the use of the following band ranges: 1.5 GHz, 10.5 GHz, 25 to 31 GHz and 38 GHz, all for point-multipoint applications. This will make it possible to set up wireless backbones to transport the widest range of signals. This is good news for the "mirror" telephone companies and for the suppliers who have wide band wireless equipment
RBS SELLING 6% STAKE IN BCP CELLULAR OPERATORS
Brazil's Rede Brasil Sul, one of the country's largest communications groups, announced this month that it sold its 6% stake in cellular phone operator BCP SA to BellSouth Corp. and local Banco Safra. Market sources value the transaction at US$142 million. The companies involved wouldn't reveal the exact value of the deal. In a written statement, RBS said the sale of the stake follows a strategic decision to concentrate its operations in the Southeast region of Brazil, where the group has a solid presence. BCP last year won the B-band concession to provide cellular phone services in the Sao Paulo metropolitan area.
QUALCOMM LAUNCHES TELEPHONE MANUFACTURING IN BRAZIL
The first commercial series of 5,000 Q-Phones, produced for Qualcomm do Brasil by Flextronics, was completed during the first week of December. In January, production will increase to 22,000 phones per month. Qualcomm has already decided to launch a second model, cheaper than the Q-Phone. But a launch date has not yet been set, and the amount the company will invest in the new line has not been established. Qualcomm expects to end 1998 with 110,000 dual mode imported CDMA cellular phones sold on the Brazilian market.
BRAZIL'S TELECOM BUSINESS OPPORTUNITIES EXECUTIVE SEMINAR (BINDER) AND SUBSCRIPTION TO BRAZIL TELEMATICS NEWSLETTER (Special 5th Anniversary Discount package for Wireless Now Subscribers*) If you like to get this special Anniversary discount call Dora at 949-552-6871 or email to info@tbc-telematics.com and mention code #500. (valid until Dec. 31, 1998)
** This column is based in the information of "Brazil Telematics News" the only newsletter that covers the monthly Telecommunications, Wireless, Data and Broadcasting business and market Sector in Brazil. Telematics Business Consultants publish the newsletter. (www.tbc-telematics.com) If you would like to receive a free copy or subscribe to Brazil Telematics Newsletter send an e-mail with your full address plus telephone and fax numbers to: info@tbc-telematics.com. We will forward the information requested. WirelessNOW subscribers get a 20% anniversary discount (valid until Dec. 31, 1998) Subscription is US$345 per year in the United States and US$385 per year outside the United States. **
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