Nortel Mexico Contract>
Mexico's AXtel Selects Nortel Networks to Build Network Worth
Up to US$750 Million
Canada Newswire
World's Largest Fixed Wireless Network
Expected
To Serve Two Million People
MEXICO CITY, Feb. 1 /CNW/ - AXtel (formerly
Telinor) has selected Nortel Networks (NYSE:
NT/TSE: NTL) to build an advanced wireless network that will provide the
latest voice and data communications services throughout Mexico, eventually
reaching more than two million subscribers to become the largest fixed
wireless access network in the world.
Nortel Networks will provide AXtel with a complete Unified Networks
solution, anticipated to be worth more than US$400 million, under a three-year
supply agreement announced today. Expected growth could bring the value
closer to US$750 million. AXtel has already placed initial purchase orders, and
plans to begin commercial operations in the second quarter of 1999.
"This award reinforces our belief that the global opportunity for fixed wireless
access is huge, and extends our leadership position in that market," said John
Roth, vice-chairman and chief executive officer, [ Northern Telecom Limited ] ,
during a ceremony in Mexico City today.
"The economics are simply too compelling," Roth said. "There's no other way
a new carrier like AXtel can address pent-up service demand faster and more
cost-effectively."
"Nortel Networks met all of our expectations with regard to superior
technology, quality of service, timely response and experience in deploying
large scale integrated networks," said Tomas Milmo Santos, managing
director, AXtel.
"Bringing wireless and other advanced communications services to the people
of Mexico and Latin America is nothing new for Nortel Networks," said Dan
Hunt, president, CALA (Caribbean and Latin America), Nortel Networks.
"We've got some of the world's largest, most sophisticated digital networks in
service or under construction in Brazil, Colombia, Chile, Uruguay, Guatemala,
Paraguay and, of course, Mexico," Hunt said. "We've been in Mexico since
1981, and this award from AXtel gives us the opportunity to grow that
commitment."
The AXtel network will feature new Nortel Networks Proximity II fixed
wireless access technology, also announced today. In addition, Nortel
Networks will supply DMS digital switching, transmission equipment,
installation and commissioning services, and training.
"This new, high-capacity Proximity II technology will allow our customers to
benefit from the most advanced voice and data services available," Santos
said. The AXtel network will provide voice, fax, high-speed data, Internet
access, call waiting, conference calling and other services.
Nortel Networks Proximity II uses the industry's highest-capacity fixed
wireless base stations to deliver voice and data services to businesses and
residences faster and more cost-effectively than copper cable solutions.
These base stations can serve as many as 2,000 subscribers in a 40-kilometer
radius. Proximity II further maximizes operator investment with spectral
efficiency enhancements for greater capacity and service quality.
With today's announcement, Nortel Networks has received awards for new
wireless networks and network expansions valued at nearly US$900 million in
just the first month of 1999, and more than US$1.5 billion in the last 60 days.
"When we announced our year-end results on January 26, I said we expected
our wireless growth to start to accelerate through the first quarter and
continue through the year," Roth said. "Evidence that we're building
momentum is the announcement we're making today, plus the other contracts
we've already announced since the start of the year."
AXtel is a company that will bring to Mexico basic telecommunications
infrastructure and, in particular, new telephone lines, through the creation of an
intelligent network that will provide wide coverage to all markets from low
income residential to large corporations. AXtel is 51 percent Mexican owned,
with Tomas Milmo Zambrano, Lorenzo Zambrano Trevino, Alberto Santos de
Hoyos and Tomas Milmo Santos as its principal shareholders. AXtel's foreign
partners are [ Bell Canada International ] with a 27 percent stake in the
company and WordTel Limited with 22 percent. In its first five years of
operation, AXtel will invest US$1 billion dollars, and will generate
approximately 6,500 direct employees and 17,000 indirect employees.
(Copyright Canada Newswire)
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