Ericsson signed a US$100 million contract with Diginet Americas to build out Diginet’s fixed wireless networks throughout Latin America. The agreement makes Ericsson the preferred supplier to Diginet to provide ATM and IP-based equipment and services for the first pan-Latin America fixed wireless broadband network. The agreement covers the urban markets of Argentina, Brazil, Colombia and Peru.
Argentina
Telecom Italia and France Telecom agreed to increase their stakes from 32.5 percent each to 50 percent each in Nortel Inversora, the holding company that owns 60 percent of Telecom Argentina. The companies paid US$265 million each for their increased shareholdings. Telecom Argentina, one of the country’s two wireline operators, owns 50 percent of cellular operator Miniphone in Buenos Aires, 100 percent of cellular operator Personal in the interior of the country, and a newly acquired national PCS license.
Brazil
Lucent acquired Brazilian companies Zetax and Batik, two switchboard manufacturers. Lucent said it has invested US$150 million in Brazil during the last 18 months.
Colombia
Comcel S.A., the Colombian cellular subsidiary of Bell Canada International (BCI), is negotiating with its lenders to restructure its senior secured term loan due to “the continuing, steep downturn in the Colombian economy,” said BCI. Comcel also postponed its planned merger with Occidente y Caribe Celular S.A. Comcel and its subsidiaries serve more than 725,000 subscribers in the eastern and western regions of Colombia. BCI owns 49.9 percent of Comcel.
Mexico
Pegaso PCS, the Mexican operating company of Leap Wireless International, announced it is launching all-digital commercial wireless service in Guadalajara, Jalisco, Mexico. The market is the second in Pegaso’s buildout of a CDMA network. The carrier expects to have 200 points of distribution in Guadalajara. Pagaso began offering service in Mexico in February 1999 in Tijuana. The company expects to begin service in Monterrey and Mexico City by the end of the year.
