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Brasilcel, Motorola Deploy 3G CDMA Network

31st January 2003

Brazilian mobile holding Brasilcel has started to deploy a CDMA2000 1xRTT network in the Campinas and Indaiatuba regions of Sao Paulo state and the Curitiba region of Parana state using Motorola (NYSE: MOT) infrastructure, the companies said Wednesday in a statement.

Deployment of the 1X network has begun and is scheduled to be completed in February 2003.

The contract, signed in June 2001, represents Motorola's first deployment of CDMA2000 1X equipment in Latin America. Motorola is supplying the joint venture with its SC 4812T radio base transceiver stations, which are being manufactured at its IT center in Sao Paulo state.

"With this CDMA 1X system, we are reinforcing our position as the first carrier to invest in this technology in Brazil and South America in order to broaden the offer of data services to our current and future subscribers," Brasilcel CEO Francisco Padinha said.

Brasilcel is a local joint venture of mobile operations between Spain's Telefonica Moviles (NYSE: TEM) and Portugal Telecom (NYSE: PT).

Brasilcel subscribers currently generate data traffic in excess of 50GB/month, "resulting in an increase in high-speed data revenues of 400% over the last six months," Padinha said. "The pressure from corporate clients, who are requesting increased coverage and more services and applications, is the main reason for our expansion of these services," he said.

The expansion also solves any potential problems with voice capacity for the next few years in these regions, Padinha said.

Motorola's 1X architecture builds upon existing networks by adding packet based network elements. For Brasilcel, these network elements include the access node from Motorola's strategic alliance partner Cisco Systems (Nasdaq: CSCO) that make the radio access network IP-capable.


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